Wind-turbine OEM, Acciona Energia, Bilbao, Spain, estimates factory gate costs for wind turbines will fall by 20% in three years, a factor the wind power industry says is crucial to their future. “Costs will come down as manufacturing picks up in places such as China and Korea,” says the firm’s Esteban Morras, chief executive of renewable energy. “But ultimately the drop depends on demand and especially because the subsidies future is unclear.
“At a time of excess equipment demand, the price of the turbines has gone up 20%,” added Fernando Ferrando, the company’s director of renewable energy.
The current subsidy scheme for wind power is due to expire in 2012. Producers say a new law enacted about February 2009 did not specify whether new wind farms will receive aid after 2010, when total capacity is expected to reach government targets of 20,150 MW. Furthermore, producers say Spain will need 45,000 MW of wind power (5,000 MW from off shore installations) by 2020 to reach European Union targets for renewable sources to supply 20% of energy consumption.
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