Wind Energy Trend

Wind Energy Regional Price Overview

Get the latest insights on price movement and trend analysis of Wind Energy in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Wind Energy Trend for the First Half of 2024

During the first half of 2024, the price trend of wind energy showed contrasting dynamics between onshore and offshore sectors. Onshore wind energy costs remained relatively competitive, with significant growth in global wind turbine orders, particularly driven by China. As China’s northern region saw a surge in demand for wind turbines, production ramped up, leveraging the country's cost-effective manufacturing capabilities.
 

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This large-scale production capacity allowed Chinese wind turbine manufacturers to offer lower prices, which in turn kept onshore wind energy costs in check globally. Western manufacturers, however, faced difficulties in maintaining competitive pricing due to project delays, equipment issues, and inflationary pressures. This divergence in regional competitiveness led to a marked difference in cost dynamics, where China’s dominant position helped stabilize global onshore wind energy costs despite challenges in other parts of the world.

In contrast, the offshore wind energy sector experienced a different trend. While onshore orders soared, offshore wind projects faced delays, and the sector struggled with less order intake. The economic challenges surrounding offshore projects, including higher production and installation costs, played a key role in slowing the momentum. Rising raw material costs and the complex logistics associated with offshore projects contributed to elevated costs, making offshore wind energy more expensive compared to its onshore counterpart.

Overall, during the first half of 2024, wind energy prices for onshore projects remained competitive, bolstered by China's dominance in the global market, whereas offshore wind energy faced upward price pressure due to economic and logistical hurdles, causing delays in project developments. These opposing trends reflected broader market dynamics, with regional factors and technological complexities shaping the pricing landscape for wind energy.

Analyst Insight

According to procurement resources, the price of Wind Energy is thus expected to be dependent upon the emergence of new players and consumer confidence in this sector in the upcoming quarters.
 

Wind Energy Trend for the Second Half of 2023

The reported literature suggested the rising market costs of energy, particularly affecting wind energy, during the second half of 2023. The studies indicated that energy costs increased in all regions due to higher capital costs, elevated capital expenditures, and cheaper natural gas prices. The traders also anticipate that the prices for wind power energy are inclined with the increased battery usage and a stabilization of inflation and interest rates.

The manufacturers also noted that the variations in production costs, which include energy, capacity, and renewable energy credits, witnessed increased capital expenses and higher tax equity return requirements compared to the first half of 2023.

In the wind sector, prices rose significantly, with notable increases in regions like the US. This surge in wind prices contributed to the overall rise in clean energy costs by the end of the year. However, some of the incentives somehow tried to stabilize the market dynamics.

Analyst Insight

According to Procurement Resource, the price of Wind Energy is estimated to showcase robust growth with the help of expansion of the consumer base and an increase in production cost.
 

Wind Energy Trend for the First Half of 2023

Wind Energy is the second most dependable renewable energy source after solar energy. In the year 2023, 440 GW of wind and solar power installations are expected to be done. This is one-third more than the renewable power installations in 2022. With this, the total global renewable output is expected to reach 4500 GW.

The rollout of wind turbines took a massive hit in 2022 because of the disrupted turbine installation supply chains. However, the progress is slowly recovering in 2023. The incurring installation costs have subsided compared to the peak levels in 2022 but have still not fallen to the pre-COVID levels. But fossil fuel prices are on the rise, and their perishable nature makes investment in the Wind Energy installations essential for a sustainable future.

Analyst Insight

According to Procurement Resource, the projections for Wind Energy resources look very positive for the coming months. Supply chains are likely to ease, and costs are likely to normalize going further.
 

Wind Energy Trend for the Second Half of 2022

The rising awareness about sustainable ways of energy production has led to an increase in demand for the same. In India, investment in this sector has increased tremendously in the year 2022 as compared to the previous year, approximately 75%. The prices were affected as the manufacturers faced the challenge of exploiting new places for wind energy set-up to gain a profit margin thus, driving the price trend for wind energy.

In the European region, the production of wind energy systems increased significantly especially in the German and French markets. As the electricity demand increased, the manufacturers were forced to take renewable routes of production. This rise in demand drove the price trend for wind energy into an upward trajectory.

In the overall global scenario of wind energy prices, the cost of production increased drastically in the year 2022. The prices were derived from the increase in prices of hardware manufacturing along with the development of the steel and rare earth metals market which positively affected the wind energy price trend.

Analyst Insight

According to Procurement Resource, the price trend for Wind Energy are expected to oscillate in the upcoming quarter. The rising demand for renewable and clean sources of energy along with increasing pressure on traditional ways of electricity production is estimated to have a positive effect on the price trend of wind energy.
 

Wind Energy Trend For the First Half of 2022

Asia

Costs for wind turbines in China significantly decreased in 2022 as a result of the more domestic competition after the government stopped funding projects at the end of 2020. The decrease occurred despite price increases across Europe due to rising power costs. From roughly 700,000USD per megawatt in mid-2020 to about 470,000USD toward the end of last year, the cost of turbines in China has significantly decreased, and bids for new projects are currently averaging about 370,000USD in 2022.

Europe

German wind and solar capture prices began to lower in 2022 due to rising wind power and declining gas generation costs. Onshore wind's official market prices in January under Germany's EEG system were 128.86 Euro/MWh. Between June and July, the market prices for onshore and offshore wind both increased dramatically, reaching 0.278 Euro/kWh and 0.287 Euro/kWh, respectively owing to an exponential increase in demand.

Procurement Resource provides latest prices of Wind Energy. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.