Renewable energy just kept getting cheaper and cheaper despite ongoing subsides for the oil and gas industries. This is really good to see as people who only care about short term economic energy decisions will have to start to advocate for renewable energy. The decrease in cost for renewable wind power can be attributed to bigger blades and better energy grid management. This means that not only is wind power cheaper, the better grid management can lead to other renewable sources getting cheaper too.
In the US, the prices for wind power had risen up until 2009, when power purchase agreements for wind-generated electricity peaked at about $70 per MegaWatt-hour. Since then, there’s been a very steady decline, and 2018 saw the national average fall below $20/MW-hr for the first time. Again, there’s regional variation with the Great Plains seeing the lowest prices, in some cases reaching the mid-teens.
That puts wind in an incredibly competitive position. The report uses an estimate of future natural gas prices that show an extremely gradual rise of about $10/MW-hr out to 2050. But natural gasâ€”on its own, without considering the cost of a plant to burn it for electricityâ€”is already over $20/MW-hr. That means wind sited in the center of the US is already cheaper than fueling a natural gas plant, and wind sited elsewhere is roughly equal.