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Wind Industry Seeks More Support As Costs Spiral Out Of Control | OilPrice.com

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Big Oil companies are stepping into the wind sector, making significant investments without government subsidies, challenging traditional wind companies on their own ground.

- Aug 09, 2023, 5:00 PM CDT

Back in June, the chief executive of Danish wind turbine major Ørsted said the British government needed to provide more financial support for the wind industry because of rising costs. issuing warnings about its business performance due to failures in the wind turbines it produced. “If a project which is by far the biggest in the world, with all these opportunities, can only become investable after having worked intensively for a year with everything, it’s hopefully also a stark reminder to the British government that something must change.”

Yet costs in the wind power industry have jumped by between 20% and 40% since February 2022, the Financial Times in June. And the fixed price for wind-generated electricity sealed in government contracts before is no longer high enough for the developers to stay in the black. The chief executive of Siemens Gamesa, the wind turbine-producing arm of the parent company, summed things up: “We sold turbines too quickly [that] had not been sufficiently tested.”

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