Turbine Advances, Siting Locations Bring Down Cost Of U.S. Wind: EIA

Between 2010 and 2016, the capacity-weighted average cost of U.S. wind installations declined by one-third, from $2,361/kW to $1,587/kW, according to the U.S. Energy Information Administration (EIA), citing the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy’s (EERE) Wind Technology Market Report.

According to EIA, the reasons for this decline include improving technology and manufacturing capability and an increasing concentration of builds in U.S. regions with the lowest installation costs.

After many years of declining real project costs, wind reached a low in 2004 at $1,342/kW. Through the remainder of that decade, costs gradually increased, reaching a peak in 2009 and 2010 of about $2,360/kW, says EIA.