Are We Understating the Potential for (and Uncertainty in) Wind Energy Cost Reductions?

The single most-significant difference came from the so-called ‘leading experts’: a hand-selected group of 22 individuals who are among the wind sector’s most knowledgeable and senior leaders. Those experts were, on average, even more optimistic about wind energy cost reduction, expecting LCOE to decline by 27% by 2030 and 48% by 2050 in the median scenario, and by 57% and 66% in the low scenario (Figure 4). The views of this group suggest even greater potential for cost reduction than noted earlier.

Is TVA Undervaluing Wind Energy?

TVA recently released its Draft Integrated Resource Plan (IRP). An IRP is a planning exercise to determine utility power plant needs 20 years into the future. The exercise depends on inputs (such as cost and performance data for various power plant types, including wind farms) to develop outputs and recommendations. Some of TVA’s most important inputs for wind power are a bit opaque – especially cost and performance data. But based on the IRP outputs, it appears that the inputs for wind energy are stuck in TVA’s wind energy glory days and are about a decade out of date.