Comments on: Economic Downturn Thwarts Growth of Wind Power http://www.environmentalleader.com/2009/01/15/economic-downturn-thwarts-growth-of-wind-power/ Environmental Leader Mon, 13 Feb 2012 17:25:03 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: CharlieO http://www.environmentalleader.com/2009/01/15/economic-downturn-thwarts-growth-of-wind-power/comment-page-1/#comment-103664 CharlieO Fri, 16 Jan 2009 11:05:03 +0000 http://www.environmentalleader.com/2009/01/15/economic-downturn-thwarts-growth-of-wind-power/#comment-103664 Financing capital intensive projects will be hard during this recession. However I'd like to make a couple of points: - "...turbine producers have been forced to cut prices or take smaller profit margins..." - this is no surprise as from what I understand when the global price-per-barrel of oil sky-rocketed last year wind turbine producers were able to inflate their prices and profit-margins as demand for turbines peaked in a manufacturer's market - so a reduction in profitability in '09 is to a certain extent innevitable as oil prices calm down due to a reduction in global demand. If however oil prices continue to fluctuate in 2009, and the US leads the subsidation of renewable energy infrastructure projects, we just might see fixed-fuel-cost renewable energies win favour with CFOs looking for predictable long-term costs as technologies like wind have the potential to achieve price-parity with coal if the legislative, economic and meteorological conditions all align. Financing capital intensive projects will be hard during this recession. However I’d like to make a couple of points:

- “…turbine producers have been forced to cut prices or take smaller profit margins…” – this is no surprise as from what I understand when the global price-per-barrel of oil sky-rocketed last year wind turbine producers were able to inflate their prices and profit-margins as demand for turbines peaked in a manufacturer’s market – so a reduction in profitability in ’09 is to a certain extent innevitable as oil prices calm down due to a reduction in global demand. If however oil prices continue to fluctuate in 2009, and the US leads the subsidation of renewable energy infrastructure projects, we just might see fixed-fuel-cost renewable energies win favour with CFOs looking for predictable long-term costs as technologies like wind have the potential to achieve price-parity with coal if the legislative, economic and meteorological conditions all align.

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