Wind Power on the Rise: Cost Parity with Fossil Fuels Predicted by 2016
A major shift in the global energy market is taking shape. Onshore wind energy is projected to match the cost of fossil fuel electricity by 2016, according to a new analysis from Bloomberg New Energy Finance.
The forecast marks a turning point for renewable energy—and a serious challenge to coal and natural gas dominance.
Wind Energy Becomes Economically Competitive
As turbine technology improves and installation costs continue to fall, the price of wind-generated electricity is dropping fast. In many regions, onshore wind projects are already undercutting traditional fossil fuel prices.
The report highlights several key drivers:
•Improved turbine efficiency
•Lower capital costs
•Streamlined permitting and construction
•Long-term policy support in leading markets
This rapid progress is pushing wind into the mainstream—and making it more attractive to utilities and investors.
Global Wind Market Expands
Wind capacity is growing at an unprecedented pace worldwide. In countries like China, the U.S., Germany, and India, wind farms are scaling up to supply clean energy to millions.
Bloomberg’s report indicates that wind’s levelized cost of electricity (LCOE) is now falling below that of coal in several markets. By 2016, it’s expected that wind will consistently reach or beat fossil fuels without subsidies.
That’s a huge deal.
The Fossil Fuel Advantage Fades
Historically, fossil fuels held the edge thanks to decades of subsidies and established infrastructure. But that gap is closing.
With wind now competing on price, the rationale for building new coal or gas plants is weakening—especially when long-term environmental and public health costs are factored in.
More importantly, wind brings no fuel costs, no emissions, and no volatile market swings.
What It Means for the Future
Cost parity with fossil fuels could trigger a major pivot in global energy investment. Utilities will increasingly choose wind over coal—not just for climate reasons, but because it’s the smarter economic play.
For consumers, it means lower power bills and cleaner air. For policymakers, it means a clear incentive to phase out fossil subsidies and ramp up renewable infrastructure.
Wind energy isn’t just catching up—it’s positioning itself as the most cost-effective, climate-safe energy choice of the future.
Source: Bloomberg New Energy Finance – https://about.bnef.com and Bloomberg New Energy Finance, London and New York, 10 November 2011
