COPENHAGEN – The head of Siemens Gamesa warned 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.
A boom in investments in green energy to address climate change has helped bring down the cost of wind power to a level where it can compete with fossil fuels like coal and natural gas.
“What we’ve clearly achieved is that wind power is now cheaper than anything else. But I believe we shouldn’t make it too cheap,” Chief Executive Andreas Nauen told Reuters.
In Europe, wind and solar currently are significantly cheaper than coal, natural gas and nuclear power, according to Bernstein research.
Demand for wind turbines is at a record high, driven by the green transition, but lower prices and increased competition have squeezed margins.
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