WoodMac expects up to 10% price rise for wind turbines in next 12-18 mo

Wind turbine prices are set to continue their upward trend, rising by up to 10% over the next 12 to 18 months on higher commodity prices and logistics cost, as well as challenges linked to the coronavirus, Wood Mackenzie said today.

Turbine prices have increased over the last six months, pushed up by rises in steel, copper, aluminium and fibre prices and a four-fold surge in logistics costs. According to the research and consultancy group, they will likely return to normal levels by end-2022.

“Turbine OEMs and component suppliers face a double whammy of cost increases and demand softening over the coming two years due to the US PTC (Production Tax Credit) and China feed-in-tariff (FiT) phase-outs,” said Wood Mackenzie principal analyst Shashi Barla.

Further cost pressures in relation to the US-China trade tussle have caused the likes of Vestas, Siemens Gamesa Renewable Energy and Nordex to explore alternative supply hubs such as India, the firm said.

Wood Mackenzie also warned of supply chain bottlenecks for key materials over the next four to five years and advised OEMs and turbine suppliers to adopt next-generation technologies and materials.

“Offshore nacelle capacity, carbon fibres, pultrusions, permanent magnet generators, large diameter main shaft bearings, gearbox bearings, semi-conductors, and specialised castings are at risk of future shortages,” said Barla.

Choose your newsletter by Renewables Now. Join for free!