Wind power to achieve full parity by 2016
There has been a perceivable long-term move to bigger and taller turbines, better aerodynamics, better controls and gearboxes, as well as improved electrical generation efficiency in the wind energy industry. The rise in the capacity factor (the power output achieved by each turbine as a percentage of nameplate capacity) has contributed to fall in wind energy prices in effort to achice parity of wind energy prices to other conventional forms of energy like coal. Reports at Bloomberg also suggests that there is a 7% cost reduction for every doubling of installed capacity – as economies of scale and supply chain efficiencies reduce costs.
The experience curve combined with improved capacity factor is expected to bring down the wind energy costs by 12% in next 5 years. It is estimated that wind energy will achieve full parity with conventional energy by 2016. As per the bloomberg report, while the best wind farms in the world already produce power as economically as coal, gas and nuclear generators; the average wind farm will be fully competitive by 2016.
