I haven’t read about that lately, so I think the costs may have more or less stabilized (but at a high level). The issue of subsidies – or lack thereof – is endemic and existed even when inflation was low. Back in 2014 Warren Buffet wrote about (onshore) wind:
“I will do anything that is basically covered by the law to reduce Berkshire’s tax rate. For example, on wind energy, we get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit.”
Bershire’s energy division has reported a negative income tax rate for years, thanks to billions of dollars’ worth of tax credits it’s received.
What we are seeing in Denmark and the Netherlands is that, absent subsidies, offshore wind does not make economic sense.
Netherlands to ditch 50GW offshore wind target https://renews.biz/101878/netherlands-to-ditch-50gw-offshore-wind-target/ Sophie Hermans, Minister for Climate and Green growth, today told parliament in a letter that slower-than-expected electrification rates, rising capex for offshore wind as well as slow development of hydrogen markets mean that “realism is needed (in) planning the roll-out of offshore wind energy”. Hermans added: “It does not seem feasible and necessary at the moment to have 50GW of offshore wind…capacity by 2040.”
There are many things that don’t look like they make sense if you narrow your view enough. It makes no sense to start refining your own rare earths when you can buy then cheaply from China. Except, oops, you are suddenly beholden to China for all of your advanced technologies, and they can cut you off in a second and leave you scrambling. Economically, politically and otherwise, the marketplace may be efficient, but it is often dumb.
We had to hire the Soviets to put our satellites in orbit because it was cheaper than doing it ourselves, except oops, we lost the ability to do so. It might not be smart of us to lose the ability to make steel, or rubber, or aluminum even if it costs a bit more.
We don’t have the ability to deploy solar in any significant volume, our hydro is about maxed out, nuclear takes years and years to permit and deploy, and demand for electricity is soaring. We going to supply it all with coal & natural gas?
We ARE going to supply it “all” with oil and gas, demand will outrun anything like normal supply and therefore those prices will explode and make the oil and gas owners even more money with less regulation. Watch who is giving lots of money to Congresscritters while taking in the delights of affiliated beach clubs and golf courses strung from Palm Beach up to whereever..