The economics of wind power

January 27, 2011, 7:00AMANS Nuclear CafeUlrich Decher, Ph.D.

It is often stated that since no one can charge money for the wind, wind-generated electricity is free. This is not true. A modern wind turbine, which can generate 2 megawatts of electricity (MWe) when the wind is blowing, costs about $3.5 million installed. Five hundred of these turbines installed at a wind farm, to be able to generate 1000 MWe, would cost $1.75 billion. Add in other costs, such as for operation and maintenance (O&M) and transmission lines, and the total sum could match the approximate $4 billion required to build a nuclear plant.