Price of Wind Turbines Drops 15% in 2010
Drop in price of Wind Turbines helps make cost of wind energy projects competitive with other energy sources
The worldwide market for wind turbines was faced with high demand and short supplies in 2008, but this year, Bloomberg’s New Energy Finance Wind Turbine Price Index (WTPI), released August 4, shows a much different picture (pdf). The price for wind turbines has dropped 15% and is not expected to recover until 2013. Unfortunately, this is one situation where lower price is not entirely a beneficial situation for the wind turbine marketplace.
In 2008 smaller community wind turbine endeavors had difficulty buying even one wind turbine, while large wind farms were ordering wind turbines from manufacturers in high quantities. The price naturally reflected the high demand.
The drop in price will eventually help bring the cost of large-scale projects using wind turbines to a more competitive status with other energy sources such as nuclear power and fossil fuels. However, an oversupply of inventory and low demand for wind turbines is not what the manufacturing sector of the industry was anticipating.
The WTPI is published two times a year and culls confidential data from 22 purchasers of wind turbines. The recent report covered 110 contracts representing about 25% of the market for wind turbines, according to Bloomberg.