U.S. Department of Energy Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
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Study Finds Wind Power Cost Competitive with Natural Gas

Study Finds Wind Power Cost Competitive with Natural Gas

Date: 4/7/2014

Researchers at Syracuse University and the University of California conducted an analysis building on U.S. Department of Energy (DOE) estimates of the lifetime levelized cost of electricity from a new wind farm. The resulting report, Visualizing the Production Tax Credit for Wind Energy, concludes that although wind energy is "not yet privately competitive on average with natural gas as long as the price of natural gas remains low," the cost of carbon adds an average estimated 1.6 cents to the true cost of gas-powered electricity. The researchers stated that the Production Tax Credit, if levelized over 20 years at 7%, "works out to roughly the same value as the average social cost of carbon."

This information was last updated on April 07, 2014