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inflation

Offshore wind in Massachusetts

February 1, 2024 By EarthWise Leave a Comment

Offshore wind power in the United States at last

On January 2nd, the first large offshore wind farm in New England started producing electricity when its first turbine came online.  The Vineyard Wind project, located off the coast of Martha’s Vineyard, will by the end of the year have a total of 62 turbines with a capacity of 800 megawatts, enough electricity to power 400,000 homes.

Power finally flowing from Vineyard Wind is an important milestone for an industry that has struggled to get going.  It is the second utility-scale offshore wind farm in the U.S. to begin generating electricity.  The South Fork Wind project off the coast of New York began producing power in December.  That project will eventually produce 132 megawatts of electric power.

The offshore wind industry in the U.S. has faced some difficulties in recent times.  A combination of rising costs, high interest rates, supply chain delays, and incidents of local opposition have created headwinds.  Developers for several large planned windfarms in the northeast have terminated contracts because of inflation and high interest rates.  The second phase of Empire Wind, located southeast of Long Island, has been at least temporarily shelved awaiting more favorable contract terms.

To fight climate change, many Eastern states are hoping to install dozens of large wind farms in the Atlantic that can generate electricity without emitting greenhouse gases.  But as a result of the recent project cancellations, analysts are now projecting that U.S. offshore wind capacity in 2030 will likely be about a third less than previously predicted.

So far, the United States remains far behind Europe, which has already installed more than 32,000 megawatts of wind capacity in its waters.

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Massachusetts Switches On Its First Large Offshore Wind Farm

Photo, posted August 31, 2022, courtesy of Nina Ali via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

EV battery costs continue to drop

January 10, 2024 By EarthWise Leave a Comment

EV battery costs keep falling

Electric vehicles have historically been more expensive than their gas-powered counterparts primarily because of the cost of the batteries that power them.  Today’s EV battery packs range in size from about 40 kWh to as much as 200 kWh, where kWh measure the amount of energy stored in pack.

The batteries in EVs are lithium-ion batteries, the same technology used to power cell phones, tablets, and computers.  A decade ago, the batteries averaged $668 per kilowatt-hour and packs as large as those in some of today’s vehicles were simply unthinkable from a price standpoint. 

Over the years, government subsidies, increased competition, higher volume, improvements in battery technology, and reductions in the cost of raw materials such as lithium have combined to drive continuous and dramatic reductions in battery costs.  By March 2022, the average price for lithium-ion batteries was $146 per kWh.  This past August, battery costs broke the $100 per kilowatt-hour barrier.

Industry analysts have long maintained that once the $100 barrier has been reached, EVs could achieve price parity with their fossil-fuel counterparts.  Electric cars would no longer be more expensive to buy than equivalent gas cars.

Projections are that battery prices will continue to fall by something like 10% a year for the rest of this decade.  All else being equal, EVs should be cheaper to buy than gas cars.  Of course, they have already been cheaper to operate for a long time. 

None of this means that car prices will go down in general.  That will depend on trends in inflation and those are pretty hard to predict.

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EVs Set to Match Gas Guzzlers in Price as Battery Costs Plummet

Photo, posted May 9, 2018, courtesy of Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

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