Explaining learning curves for wind power

Abstract

Due to environmental concerns and the fact that fossil energy sources are non-renewable, there is a growing interest in alternative energy sources. One of these sources is wind. The utilisation of wind energy differs greatly between countries, both due to different aerodynamic conditions and to differing policies. This article compares the learning curves for wind power in three countries, Denmark, Germany and the United Kingdom. The study reveals that policies that enhance competition probably can result in large cost reductions, but that they may hamper diffusion of wind power. Using price systems that guarantee wind turbine owners a certain price for each kW h generated, Germany and Denmark have created stable market conditions, and thereby increased the capacity installed, although costs have fallen less.