The price of onshore wind power has fallen below fossil fuel production for the first time in a G7 economy.
Whilst the cost of wind generated energy has been dropping drastically in recent years, it is only now that the renewable has become more cost-effective than coal and gas.
Writing for City AM, Clara Guibourg asserts that onshore wind in the UK is estimated to cost $85 per megawatt-hour in the second half of this year. Combine-cycle coal and gas comes in at $115. This will make the clean energy source fully cost-competitive even without government subsidies.
The drop in price can be accredited to lower financing costs, and technological advancements. In Europe, Germany are also enjoying a similar trend – albeit at slightly cheaper prices. No doubt UK government will be pleased by the sector’s progress, especially in light of the carbon-free energy drive outlined in its 2015 manifesto.