WIND COST BEATS NAT GAS – STUDY

Wind cheaper than gas, says E&Y

Michael McGovern, 15 October 2012 (Windpower Monthly)

“The net cost of European wind power is up to 50% lower than that of its main conventional power rival, combined cycle gas (CCGT), according to [Analysis of the value creation potential of wind energy policies; A comparative study of the macroeconomic benefits of wind and CCGT power generation] by financial group Ernst & Young (E&Y).

“In Spain, the costs required to produce 1MWh will generate EUR56 of gross added value from wind, as opposed to EUR16 from CCGT…Across the six European focus countries (Spain, UK, France, Germany, Portugal and Poland), wind's net cost is competitive and, extrapolated across the UE26, cheaper.”

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“By factoring in returns to GDP, like jobs and local taxes, E&Y's analysis challenges the power sector's levelised cost of energy (LCOE) standard, which always places wind costs higher, mainly due to upfront costs.

“Gas is costlier in countries dependent on imports. But even in gas producing UK, E&Y places wind's net cost only slightly above gas, at EUR35/MWh against EUR31/MWh, respectively.”

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