Wind is cheaper than coal, oil and gas, says European Union study

Wind power UKIf your price doesn't reflect the true cost of your product, then you are either going to go out of business, or you are going to have to foist the costs onto other people.

It's clear that fossil fuel industries have been pursuing the latter strategy for quite some time now. But as awareness of the true costs of climate change and air pollutiongrows, this position becomes increasingly precarious.

The latest indication that things must change comes in the form of a European Union commissioned report—written about over at Recharge—which finds that onshore wind is the cheapest energy source of all, once externalities such as climate change impacts and health effects are taken into account.

With onshore wind costs coming in at about €105 ($133) per MWh, this figure compares favorably to gas (€164/MWh), nuclear (€133) and, most dramatically, coal (€162-233).

We should note that onshore wind also beats offshore wind (€186/MWh) and solar (€217) by a considerable margin. However, while the cost of coal and other fossil fuels is likely to go up as supplies get harder to reach and lawmakers get serious about putting a price on carbon, solar costs continue to drop dramatically and industry insiders estimate offshore wind costs could drop 40 percent in coming decades.

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