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Research shows that wind turbine prices will increase by 10%

According to the latest analysis by Verisk company Wood Mackenzie, Wind Turbine Price is expected to rise by 10% in the next 12 to 18 months due to increased commodity prices, logistics costs and coronavirus-related challenges.

Wind Turbine Price, As pointed out in a recent report by Wood Mackenzie, the increase in steel, copper, aluminum and fiber prices, coupled with a four-fold increase in logistics costs, has increased turbine performance in the past six months. price. Wood Mackenzie predicts that this trend will continue in the next four to five quarters.

Shashi Barla, chief analyst at Wood Mackenzie, said: “Due to the phasing out of PTC (Production Tax Credit) in the United States and FiT in China, turbine OEMs and component suppliers will Facing the double blow of rising costs and weak demand. Despite rising costs, we expect turbine prices to return to normal levels by the end of 2022.”

With the US-China trade dispute showing no signs of improvement, turbine OEMs are facing further cost pressures. This has forced companies such as Vestas, SGRE and Nordex to explore alternative supply centers such as India.

Barla added: “India to India” and “India to global” supply chain strategies encourage leading turbine component suppliers to follow their turbine OEM customers into Asia-Pacific countries affect Wind Turbine Price.

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“As expected, India’s demand growth did not materialize, thus allowing OEMs and suppliers to use excess production capacity to serve the export market cost-effectively. As OEMs continue to manufacture the latest generation of turbines in India , Component suppliers are expanding in the market to produce components closer to their client cabin factories.”

Wood Mackenzie believes that with the continuous development of market conditions, original equipment manufacturers and turbine suppliers must adopt a new generation of technologies and materials, because the supply chain bottlenecks of important materials will appear in the next four to five years.

Barla said: “If the production capacity of key capital components and raw materials does not expand in the next two years, the wind turbine industry will face supply constraints, which may cause problems with national decarbonization targets. Offshore wind cabin capacity, carbon fiber, pultrusion, permanent Magneto, large-diameter spindle bearings, gearbox bearings, semiconductors and special castings are at risk of future shortages affect Wind Turbine Price.”

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