Wind farm production costs are down by a third

The U.S. Energy Department reported recently the cost of wind-generated power dropped by one-third between 2010 and 2016.

The reason? Improved technology as well as better manufacturing capability. Then there is the aspect of concentration of wind farms in regions that have lower installation costs.

In 2010, the capacity-weighted average cost in inflation-adjusted dollars for wind generation was $2.361 per kilowatt. But in 2016, the cost had been cut to $1,587 per kilowatt.

The Energy Department says the nation has seen a major increase in the production capacity of wind turbine components since 2010. The growing pace of wind farm installations also reduced the overall costs.

The interior of the U.S. has drawn more new wind installations including huge growth seen in Oklahoma and Texas. By 2016, about 90 percent of the new capacity was in the Midwest and Southwest where costs are lower, there is plenty of wind, and there is flat land for easy development of wind farms.