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Economics from the Windicator

All electricity generation prices are rising, mainly due to higher fuel costs, which have a knock-on effect on the price of steel, copper and other raw materials that power plant are made from. The price rises push up manufacturing costs for wind and its principal competitors, gas coal and nuclear (pages 51-56). As technologies with high capital costs, wind and nuclear are hit hardest. Gas and coal generation costs, however, are also being pushed up by rising price penalties on their carbon emissions. Meantime, the cost of wind generation is expected to fall as further economies of scale cut in and supply catches up with demand.

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