section_path: Economics/Electric power cost and trends
section_name: Electric power cost and trends
paragraph_text: Electric power cost and trends
  
  Wind power is capital intensive but has no fuel costs. The price of wind power is therefore much more stable than the volatile prices of fossil fuel sources. However, the estimated average cost per unit of electric power must incorporate the cost of construction of the turbine and transmission facilities, borrowed funds, return to investors (including the cost of risk), estimated annual production, and other components, averaged over the projected useful life of the equipment, which may be more than 20 years. Energy cost estimates are highly dependent on these assumptions so published cost figures can differ substantially.
  
  The presence of wind energy, even when subsidized, can reduce costs for consumers (€5 billion/yr in Germany) by reducing the marginal price, by minimizing the use of expensive peaking power plants.
  
  The cost has decreased as wind turbine technology has improved. There are now longer and lighter wind turbine blades, improvements in turbine performance, and increased power generation efficiency. Also, wind project capital expenditure costs and maintenance costs have continued to decline.
  
  In 2021, a Lazard study of unsubsidized electricity said that wind power levelized cost of electricity continues to fall but more slowly than before. The study estimated new wind-generated electricity cost from $26 to $50/MWh, compared to new gas power from $45 to $74/MWh. The median cost of fully deprecated existing coal power was $42/MWh, nuclear $29/MWh and gas $24/MWh. The study estimated offshore wind at around $83/MWh. Compound annual growth rate was 4% per year from 2016 to 2021, compared to 10% per year from 2009 to 2021.