Oversupply Makes Wind Turbine Prices Remains Grim

After a slump in wind turbine prices in 2009, their current price in 2010 remains stagnant.

2008 caused a peak in turbine prices and Bloomberg New Energy Finance has found in a recent survey that they show little sign of recovering from the 15 per cent slump below the peak.

At present, builders of wind farms are paying their turbine makers on average 1.04 million euros a megawatt for delivery by the middle of next year. However this is significantly down on the previous 1.22 million euros for the same delivery in 2008 and 2009.

William Young, Manager of Energy Finance’s Wind Insight Service has commented on the reduction “expectations for turbine prices have never been so low. The current market oversupply will continue for quite a while longer. That may not be great for wind turbine manufacturers, but the good news for the sector is that it will improve the competitiveness of wind with gas, coal and nuclear.” This has meant trouble for turbine makers such as Denmark’s Vestas Wind Systems A/S and Gamesa Corporacion Tecnologica SA as they have previously encountered financing problems during the recession. New Energy has indicated that they do not expect the price of turbines to increase until 2013.

Source: Green Energy UK