Wind power risks becoming too cheap, says top turbine maker

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>The head of Siemens Gamesa (SGREN.MC) warned on Wednesday that a decade-long race to bring down the cost of generating wind power could not continue, as it would reduce the financial muscle of turbine producers to continue investing in new technologies. ironic as fuck.


“The free market makes me less profit because of competition!” 🙁 Maybe get more competitive, my dude.


He has a valid point. Apparently we are all happy with the current state of windmills/farms? I hope so, with dwindling profit margins no supplier is going to develop quieter, more efficient devices. What he actually says is that we’ve reached the pinnacle of windmill technology if we are not willing to invest in improvements. The only way to improve is to spend on R&D and with low margins that’s not going to happen.


>Wind turbine makers’ operating margins are also being squeezed by rising costs stemming from the supply crunch and high prices for raw material such as steel. Just so people get this right this is not about Capitalism in the sense that the wind power itself is too cheap but that the materials to *build* wind power are too expensive to maintain the ability to generate a self-sufficient business model. Think of this way: You make lemonade from lemons and the lemons only cost $1 but the fertilizer to grow the trees and keep them healthy costs $400. If the price of the lemonade drops from $1 to $.50 it’s twice as hard to pay for the fertilizer then. The problem isn’t the lemonade price but the fertilizer.


Hey Siemens guy: planet first, bottom-line second.