New York New Figures from Bloomberg New Energy Finance (BNEF) show that wind turbine prices are still low compared to when they peaked in 2008.
BNEF puts together a Wind Turbine Price Index twice a year that tracks the price for wind equipment globally. According to the company’s figures, wind turbine prices are down 15% over the last two years. Suppliers were getting about €1.22 million per MW in 2008. Today, average prices are €$1.04 million per MW. Some suppliers with too much capacity are selling turbines for under €1 million per MW.
The lower demand for wind is making it difficult for suppliers to unload all their turbines. European growth will fall flat this year and the U.S. market could see a 40% decline in installations. The American Wind Energy Association reported last month that wind installations in Q2 of 2010 were down 70% from Q2 2009.
The emergence of Chinese players such as Sinoval and Goldwind is also putting more pressure on the historic leaders like Vestas, Siemens and GE. While the current environment is squeezing some suppliers, many industry analysts believe it will be a good thing for the industry, as it will force manufacturers to drive down costs through innovation and product differentiation.
For an in-depth look at the factors behind this difficult period for wind, listen to our podcast, “Why the Wind Market is Hurting.”