The cost of electricity from wind is falling. This is due to total installed costs declining in line with lower wind turbine prices since 2009 and, at the same, technology improvements mean more wind is harvested from the same site with new wind turbine technologies.
The weighted average electricity cost of new onshore wind farms in 20142 was between USD 0.06 to USD 0.09/kWh depending on the region, but costs can be as low as USD 0.05/kWh for the most competitive projects without financial support. Costs will continue to decline in the near future due to continuing pressure on wind turbine prices and continued growth in hub heights and swept areas, which results in higher capacity factors for wind. Offshore wind is considerably more expensive, with costs of between USD 0.10 and USD 0.21/kWh.
The regional weighted average installed costs for onshore wind range from around USD 1 280/kW to USD 2 290/kW. China and India have weighted average installed costs 35% to 44% lower than in other regions. Offshore wind farms are significantly more capital-intensive, and typically range between USD 2 700 and USD 5 070/kW.