Lowering the Cost of Wind Power to Better Compete
As renewable sources such as wind and solar compete as serious contenders in generating more energy for the world, the energy produced must be as cheap, if not cheaper, than that of fossil-based sources. In addition, the quality of energy produced must be equally as high. The formula for lowering the cost of energy from any source is ultimately very simple: lower overall capital investment costs, equipment lifetime operation and maintenance (O&M) costs and fuel costs, while boosting the amount of energy generated. This formula becomes even more attractive with wind and solar – as the cost of fuel is already free. In the end, it all comes down to five main drivers that have a major effect on lowering the cost of energy with renewable sources.
By Jussi Vanhanen, Director, Sales and Marketing, The Switch, Finland
As renewable sources such as wind and solar compete as serious contenders in generating more energy for the world, the energy produced must be as cheap, if not cheaper, than that of fossil-based sources. In addition, the quality of energy produced must be equally as high. The formula for lowering the cost of energy from any source is ultimately very simple: lower overall capital investment costs, equipment lifetime operation and maintenance (O&M) costs and fuel costs, while boosting the amount of energy generated. This formula becomes even more attractive with wind and solar – as the cost of fuel is already free. In the end, it all comes down to five main drivers that have a major effect on lowering the cost of energy with renewable sources.By Jussi Vanhanen, Director, Sales and Marketing, The Switch, Finland
