How Wind Turbines are Becoming Photocopiers â and the Cost to Investors
We all know that the wind turbine market in Europe is an oligopoly. Power resides in the hands of very few players â and, in the offshore space, just five manufacturers (OEMs) account for 100 percent of the turbines that were sold in 2014.
Of course, up until now, this hasnât been much of an issue at all. Competition, fuelled by potential idle production capacities and stock market expectations, has created healthy price pressure. Indeed, turbine prices have been steadily declining over the past five years, on a per MW basis, despite an overall increase in MWh per turbine due to the introduction of longer blades.
However, what many fail to realize is that market dynamics are starting to fundamentally shift. This six-firm oligopoly is now behaving like one. Collectively, in the space of just a few years, each OEM has changed its business model, targeting maximum returns.