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Monday, Oct 5, 2026

Does onshore wind power need subsidies to compete with fossil fuels?

Sue Bin Park, Skeptical Science
no

Unsubsidized onshore wind is now generally cheaper than building fossil fuel plants.

Cost of energy sources are compared using “levelized cost of energy,” or the average lifetime cost to build and run a power plant divided by electricity produced. A 2026 report estimated the mean LCOE of unsubsidized onshore wind at $68 per megawatt-hour, compared to $90 for new natural gas plants and $124.50 for coal. 

Developments like supply chain maturation, improved monitoring, and larger, more productive turbines have allowed the LCOE of onshore wind to decrease by 70% since 2010. 

While recent inflation, rising interest rates, and trade barriers have increased costs across all energy generation technologies, onshore wind is still cheaper than fossil fuel plants and projected to decrease further in the long-term.

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