Wind energy is a renewable energy source which means there is an inexhaustible amount of energy that can be cultivated. With zero greenhouse gas emissions, wind energy has very low impacts to the environment and can be used virtually anywhere the wind blows. According to the American Wind Energy Association, the wind industry has generated over $100 billion dollars in private investment.
Over the past 20 years, the price of wind electricity has dropped considerably due to increased capabilities in turbine technology coupled with decreased costs of wind turbines. In 2012, the Department of Energy found the average cost of wind projects was $1940/kW. In the area of land-based wind farms, the largest single contributor to costs are the wind turbines. This can account for up to 70 percent of the total wind project costs on land. After the initial costs of the wind project, operational costs are significantly less making the return rate for a wind farm considerably shorter depending on the regional market for wind energy, quality of wind-based electricity produced, and total amount of energy sold over time.
For an offshore wind farm, the initial cost of the project will be more due to the additional equipment needed to transport the electricity from the wind turbines in the ocean to the power grid on land. However, even though the initial cost will be greater than that of an inland wind project, the amount of power generated from an offshore wind farm will be greater.
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