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Published on April 4th, 2012 | by Zachary Shahan

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Wind Turbine Prices Hit New Low

April 4th, 2012 by  


 
wind turbine prices low

As the prices of fossil fuel energy sources continue to rise, wind energy prices continue to fall. Bloomberg New Energy Finance’s latest Wind Turbine Price Index (WTPI) reports that utility-scale wind power equipment prices hit a new low in the second half of 2011. Prices dropped about 4%. BNEF writes: “contracts signed in the second half of 2011 for 2013 delivery fell to EUR 0.91m/MW ($1.21/MW), down 4% from six months earlier and well off their five-year high of EUR 1.21m/MW in 2009.”


Price drops were largest for older wind turbines, dropping to “EUR 0.85m ($1.13m) per megawatt on average, down 10% from six months earlier.”

Chinese manufacturers led the competition, even in developing wind power markets across the world, such as Brazil, Chile, Ecuador, Pakistan, Ethiopia and Australia.

“The survey revealed procurement officers and turbine manufactures sharing a generally negative outlook on prices; most anticipate further moderate declines in turbine prices in 2012 and 2013. They don’t expect prices to recover until at least 2014.”

Leading causes of the price drops are excess wind power equipment capacity and new low-cost competitors, such as new Chinese manufacturers.

“Short-term pain among wind manufacturers is now undeniable and unavoidable. But the current price slump is good news on the demand side as wind is more competitive with coal and gas on a dollar-per-megawatt hour basis, which is vital given ever-lower levels of subsidy and support,” Michael Liebreich, chief executive of Bloomberg New Energy Finance, says. “Those manufacturers which can achieve leading cost positions are going to be in a good strategic position when the market enters its next expansionary phase in a few years.”

Here are some more details on what went into the analysis:

“The WTPI represents aggregated data collected on a confidential basis from 38 of the world’s largest buyers of wind turbines. The sample includes information on more than 230 turbine contracts totaling nearly 10.6GW of contracted capacity – with a main focus on Europe and the Americas.”

Source: BNEF
Image: Wind turbine in process of installation courtesy of shutterstock 
 

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About the Author

is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director, chief editor, and CEO. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao. Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he does not offer (explicitly or implicitly) investment advice of any sort on Tesla or any other company.



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