The average installed cost of wind projects was $1,460/kW last year, down 40% from 2010. The cost of wind energy is declining, too, reaching $20/MWh in the wind belt of the U.S. and $30/MWh in the West and East.
Average capacity factor of projects built over the last five years was above 40%.
"Wind power capacity additions in the United States hit a new record in 2020, supported by the industry’s primary federal incentive—the production tax credit (PTC)—as well as a myriad of state-level policies," the report's authors wrote. "Improvements in the cost and performance of wind power technologies have also driven wind capacity additions, yielding low-priced wind energy for utility, corporate, and other power purchasers."
The authors concluded that wind's benefits to the grid, population health, and curbing climate change "far-outweigh" the costs.
Offshore wind pipeline grew 24% in 2020
The Dept. of Energy also released the Offshore Wind Market Report: 2021 Edition which notes the U.S. offshore wind pipeline grew 24% in 2020 with a total of 35.32 GW in various stages of development. A large portion of the pipeline -- 9,800 MW -- is due to the Bureau of Ocean Energy Management creating five new Wind Energy Areas in the New York Bight.
Massachusetts' Vinyard Wind I, meanwhile, became the first approved, commercial-scale offshore wind energy project in the U.S.
Global offshore wind installations totaled 5,519 MW in 2020, according to the report. The global pipeline for floating offshore wind energy tripled in 2020 to 26,529 MW.