8 June 2012: The International Energy Agency (IEA) Wind Implementing Agreement for Co-operation in the Research, Development, and Deployment of Wind Energy Systems has released a report, titled “The Past and Future Cost of Wind Energy,” which finds the levelized cost of energy (LCOE) for onshore wind power is currently historically low and that future cost reductions will be driven more by performance improvements than reduced capital costs.

The report shows that the LCOE for onshore wind energy declined by a factor of more than three between the 1980s and the early 2000s due to reductions in capital cost of wind power and increases in performance. The report highlights that since 2003, the LCOE has increased again due to higher capital costs. However, models show that for projects expected in 2012-2013, continued performance improvements and recent reductions in project capital costs result in an all-time low LCOE within fixed wind resource classes, and particularly in low and medium wind speed areas.

The report also makes projections up until 2030 and finds that the LCOE of wind energy is expected to continue to fall, mainly due to performance improvements, including continued turbine up-scaling and design advancements. However, the report mentions that the magnitude of future cost reductions is uncertain, and that additional data gathering and improved modeling capability are necessary to improve the accuracy of future cost trends. [Publication: The Past and Future Cost of Wind Energy]