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UK wind turbine prices might increase after COVID-19

Arnes BiogradlijaBy Arnes Biogradlija13/04/20202 Mins Read
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Analysts GlobalData has reported that the UK wind turbine prices could increase due to the coronavirus pandemic as quarantine measures create a supply blockage.

Even tho it’s a thriving industry, the UK suffers from a lack of domestic turbine manufacturers.

“Despite the manufacturing sector being exempt from the lockdown, stringent quarantine measures are likely to create a material supply bottleneck. Production rates are not expected to be high, hence to meet the expected rates, the manufacturing costs would go up. During the first quarter of 2020, the UK’s average turbine price is estimated to rise to $854/kW, from $816/kW, and is expected to peak further in Q2 to reach $891.6/kW as suppliers across the value chain are likely to be impacted by capital crunch, a shortage of personnel and transit issues,” said Somik Das, senior power analyst at GlobalData.

Vestas, Siemens-Gamesa, and Nordex and other leading manufacturers have stalled facilities in Italy and Spain.

However, the most significant impact on the supply chain is the restrictions imposed on the movement of goods and workers.

Das added: “The pandemic has led to closed borders and fluctuating forex rates. This has impacted the flow of goods. Logistics and balance of plant support from UK businesses have declined, stalling projects. The current challenges are likely to be resolved once the lockdown measures are lifted by the government. However, the time lost in curbing COVID-19 transmission and regaining harmonization between supply and demand will most probably result in a period of high turbine prices, until the end of 2020.” 

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