The US wind energy market is the most competitive in the world in terms of the levelised cost of electricity (LCOE), according to consultancy Make.
The company said in a research paper that US competitiveness is because of the economies of scale that have been created in Texas and the Midwest region.
It said the latest generation of blades that are being deployed are able to realise new levels of productivity.
“These dynamics place wind power generated in the US in direct competition with the cost position of new natural gas plants, and more competitive in some areas of the country,” Make said.
The consultancy added that other regions of the Americas are not far behind the US in terms of LCOE.
It said Mexico, Brazil and Canada have slightly higher cost positions, due to some of the regional supply chain dynamics present in these markets.
“In Brazil, significant currency risk threatens to increase LCOE over the long term, but the country currently experiences the second best LCOE position due to very productive wind resources,” Make said.
It added that the German onshore market tops the list of European countries in terms of LCOE performance.
“The latest generation of 3MW plus turbines positions the German wind energy market well for the looming auction system of renewables pricing that will replace the feed-in-tariff as part of the German energy policy restructuring,” the consultants said.
They added that the solar market in Germany is close to being cost-competitive with wind energy.
In Asia Pacific, the LCOE of onshore wind in China and India are hampered by significant curtailment that reduces production in these countries.
But, as grid infrastructure improves, Make expects that the two Asian powers will “utilise their local supply chain and favourable cost position to realise significant improvements in LCOE”.
In the offshore market, the paper said there will be “significant improvement” in LCOE over the next five years, as a result of infrastructure investments and next generation 7MW plus turbines.
An emerging Chinese offshore market is also expected to be “favourably positioned, versus western rivals’, due to substantial nearshore development and low cost position”, the report said.
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