This report uses representative utility-scale projects to estimate the levelized cost of energy (LCOE) for land-based and offshore wind plants in the United States. Data and results detailed here are derived from 2015 commissioned plants. More specifically, analysis detailed here relies on recent market data and state-of-the-art modeling capabilities to maintain an up-to-date understanding of wind energy cost trends and drivers. It is intended to provide insight into current component-level costs as well as a basis for understanding variability in LCOE across the industry. This publication reflects the fifth installment of this annual report. The primary elements of this 2015 report include: • Estimated LCOE for a representative, land-based wind project installed in a moderate wind resource located within the interior (hereafter referred to as "Interior") region of the United States in 2015 • Estimated LCOE for representative offshore, fixed-bottom, and floating projects, using National Renewable Energy Laboratory (NREL) models and a database informed by projects installed in Europe for a representative site on the U.S. North Atlantic Coast in 2015 • Sensitivity analyses showing the range of effects that basic LCOE variables could have on the cost of wind energy for land-based and offshore wind power plants and NREL's historical, calculated LCOE estimates for land-based and offshore wind plants • Estimated range of LCOE for land-based wind projects across the contiguous United States that were divided into five regions and based on geographically specific wind resource conditions paired with approximate wind turbine size characteristics • An update on prior analysis (Bolinger and Wiser 2011) of the drivers of wind turbine prices in the United States to estimate and understand the relative contributions of various endogenous and exogenous drivers to the decline in wind turbine prices observed since 2010.
Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) are two proposed investment vehicles that have the potential to lower the high cost of capital for renewable energy assets-a critical factor in the U.S. Department of Energy's goal for renewable energy to achieve grid-parity with traditional sources of electric generation. Due to current U.S. federal income tax laws, regulations, and administrative interpretations, REITs and MLPs cannot finance a significant portion of the cost of renewable energy assets. Efforts are underway to alter these rules by changing the definition of "real property" (REIT) and "qualified income" (MLP). However, even with rule changes, both investment vehicles have structural challenges to efficiently finance renewable energy assets. Among them are (1) effectively utilizing the U.S. federal income tax incentives; (2) administratively structuring the investments to not be overly onerous or complicated, given the potential for pooling a relatively large amount of small assets; and (3) attracting and retaining a large enough investment community to participate in the funding opportunities. This report summarizes these challenges so that if proposed federal changes are made, stakeholders have an understanding of the possible outcomes. The first section of this report summarizes current MLP and REIT markets and proposed rule changes. The second and third sections detail challenges to financing renewable energy assets with REITs and MLPs, respectively. Finally, the fourth section discusses possible investor responses to a renewable energy REIT or MLP.
Department of Energy (DOE) reports produced after 1991 and a growing number of pre-1991 documents are available free via www.OSTI.gov.
DOE, por sus siglas en inglés) de los Estados Unidos en virtud del Contrato N.º DE-AC36-08GO28308. Fondos proporcionada por Children's Investment Fund Foundation en el marco de la 21st Century Power Partnership bajo el ACT-15-00008. Las opiniones expresadas en el artículo no representan necesariamente los puntos de vista del DOE o del Gobierno de los Estados Unidos o de cualquier agencia del mismo.Este informe está disponible sin costo en el Laboratorio Nacional de Energía Renovable (NREL) en www.nrel.gov/publications. Los informes del Departamento de Energía (DOE) de los Estados Unidos producidos después de 1991 y un número en aumento de documentos anteriores a 1991 están disponibles de manera gratuita a través de www.OSTI.gov.
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