Onshore wind costs are expected to fall by 30% by 2030 as China's market share of low-cost wind turbines expands

International Energy Network/Wind Power Headlines (WeChat ID: wind-2005s) learned that on May 14, Wood Mackenzie's latest research report, Battle for the future 2023: Asia Pacific power and renewables competitiveness overview, pointed out that The cost of renewable energy generation, known as the levelized cost of electricity (LCOE), is declining significantly in the Asia-Pacific region and will fall to a record low in 2023.

The capital cost of renewable energy projects has been significantly reduced, making renewables increasingly competitive with traditional low-cost coal power.In 2023, the LCOE of renewable energy was 13% lower than that of conventional coal, and it is expected to continue to fall to 32% by 2030.

China is leading the way in reducing costs in renewable energy, especially in the areas of centralized photovoltaics, onshore wind and offshore wind, with an average LCOE 40-70% lower than in other regions.

In 2023, the cost of onshore wind power in Asia Pacific will be 38% higher than the cost of PV. Wood Mackenzie predicts thatAs China's market share of low-cost wind turbines expands, onshore wind costs will fall by 30% by 2030。 Markets such as Australia and Southeast Asia have benefited from lower Chinese equipment import prices, with onshore wind costs set to fall by 17% by 2025. In contrast, Japan and South Korea have limited access to Chinese wind turbines and prefer to use local supply chains, with onshore wind costs remaining at US$80/MWh.

The competitiveness of offshore wind power in the Asia-Pacific region is increasing,Offshore wind costs fell by 11% in 2023。 In China's coastal areas, the cost of offshore wind power is already on par with that of coal-fired power generation. By 2030, the cost of new offshore wind projects in Asia Pacific will fall by another 21%. The declining cost of offshore wind construction (CAPEX) and technological advancements have opened up new markets for it in India, Southeast Asia, and Australia.