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Economics from the Windicator
1 July 2007
The cost of fully installed wind power plant is still going up as demand continues to outstrip supply for raw material and for turbines. The average cost so far this year is around EUR 1300/kW, an increase of 8% on the average for 2006. Cost increases could slow the rate of growth in places where fixed purchase prices do not allow sufficient margins. Wind may also find itself economically challenged as a carbon reduction technology by a new competitor -- coal, with carbon capture and storage, which seems to be gaining credibility. But considerable technical problems remain to be overcome and costs are uncertain.
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