Spin put on the government’s recently announced strike prices to three large offshore wind farms has misled many into thinking that the costs of offshore wind are falling. In fact, empirical CAPEX data collated for the first time in a new statistical study published today by GWPF shows that the capital costs for offshore wind remain high. Moreover, as the wind industry moves into deeper water, costs are actually rising offsetting any reduction in costs due to technical progress. —Global Warming Policy Foundation, 25 September 2017
When prices tumble for a product or service, there is generally an observable reason. It might be a cunning technological fix that dramatically boosts productivity, for instance, or the sudden slide in a key input cost. But nothing so obvious can convincingly explain why it is suddenly much cheaper to produce electricity from offshore wind turbines. —Financial Times, 25 September 2017
Energy companies that stunned the world by offering to build wind farms with no subsidy may ruin the industry’s reputation by never actually delivering on their promises. That’s the warning of industry executives, who are cautious about the future of zero-subsidy offshore wind farms planned in Germany this year. —Bloomberg, 19 September 2017
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