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Onshore Wind Outcompetes Coal and Gas on True Costs
6 Nov
Summary
- Onshore wind costs €105/MWh, cheaper than gas (€164/MWh) and coal (€233/MWh)
- Renewable energy subsidies lower than fossil fuels when externalities factored in
- Conservative party's plan to restrict onshore wind could block cheapest energy source
According to a recent EU analysis, onshore wind is significantly cheaper than fossil fuel-based energy sources like coal and gas when the costs of environmental and health impacts are factored in. The report, commissioned by the European Commission, found that onshore wind costs roughly €105 per megawatt hour (MW/h) to generate, compared to gas at up to €164/MW/h and coal at €233/MW/h.
The analysis also shows that renewable energy sources like nuclear, offshore wind, and solar are all comparably inexpensive, costing around €125/MW/h. This challenges the common perception that renewable energy is too costly and a burden on taxpayers. In fact, the report suggests that the true cost of Europe's reliance on fossil fuels has been underestimated, with the external health and environmental expenses far exceeding those of renewable alternatives.
The findings could complicate the UK's Conservative party's plans to restrict new onshore wind farms, which the report identifies as the cheapest source of electricity when all factors are considered. Industry experts warn that such "stop-start" policies and retroactive changes can undermine investor confidence and drive up the cost of renewable energy development.
