ENERGY
MAKING
TRANSITION
WORK IN
EUROPE
Wind energy makes economic sense.
So why is Europe’s leadership in it slowly slipping away?
GILES DICKSON
CEO, WindEurope
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Wind energy in Europe is at a crossroads.
It’s a time of great opportunity and great
uncertainty. Great opportunity because
wind energy continues to set records
on installations and investments. And
costs continue to fall rapidly. But great
uncertainty because the policies and
markets are not in place to support
its continued deployment, crucially to
deliver the price signals investors need.
Wind now meets over 11% of Europe’s
electricity demand, and the industry
generates €67bn in annual turnover. On
economics alone, this should be a golden
age for wind energy in Europe. Onshore
wind is the cheapest form of new power
generation in Europe: it costs less than
building new coal, gas or nuclear.
Off shore wind is also cutting costs
dramatically. In June 2016, 11 major energy
companies declared off shore wind costs
could fall to below €80/MWh by 2025,
assuming an annual buildout of 4GW
a year. A month later, DONG Energy
secured the cheapest off shore price ever
seen, winning the Borssele I and II sites
in the Netherlands for a record €87/MWh
including grid connection. This exceeded
even the most optimistic expectations.
It puts off shore wind in the same cost
range as conventional power generation.