Electricity from wind is now cheaper than from coal and gas when the costs of carbon are taken into account, according to the British Wind Energy Association (BWEA) in evidence to a House of Lords inquiry into the economics of renewable energy. Wind costs around £62/MWh to generate compared with £68/MWh for coal and £63/MWh for gas. These are "mid-range" costs and assume a carbon dioxide price of EUR 27 per tonne. But with future fuel and carbon costs still uncertain, the BWEA stresses that Britain's Renewables Obligation (RO) support mechanism is still needed to enable project developers to secure bankable power purchase contracts to enable them to finance their projects. The BWEA adds that the RO also allows wind farms to be built on a broad range of sites, some with low wind speeds and therefore high generation costs.
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