Wind power market entry strategies - build or buy?

Proliferation of climate policies are instigating long-term wind strategies split between domestically-focused wind generators and firms applying global strategies to tap major growth opportunities. In the current context of soaring turbine prices, supply bottlenecks and record wind farm valuations, carefully crafted entry strategies are key to growing profitable and competitive wind portfolios.

Scope of this report

• Data concerning power generation costs for the five major renewable technologies and an awareness of associated subsidy systems across key markets
  
• Knowledge of the key factors governing wind power economics applied to generation costs and based on realistic onshore/offshore development costs
  
• Detailed insight into the cost, profitability and economic competitiveness of the three main onshore/offshore wind power market entry strategies
  
• A case study assessing the likely relative profitability of different onshore/offshore wind power market entry strategies in the UK and Germany

Research and analysis highlights

Today, wind is more competitive against fossil fuel than ever, despite higher turbine prices. The biggest price reduction of renewable technologies and learning curves are found in markets operating feed-in tariffs. This support system has delivered the most wind capacity, whereas quota and certificate mechanisms have largely underperformed.

Wind power projects are front-loaded and capital intensive, therefore hardware prices and financing standards and structures have a high degree of influence on the economics of wind farming. Wind power generation costs are also highly dependent on wind conditions, turbine load factor characteristics as well as operation and maintenance costs.

Onshore wind is profitable, provided that the four key parameters are optimized, with appropriate support mechanisms in place. Offshore wind, on the other hand, is a more high-risk high-reward business. Under the current market conditions, the most competitive portfolio is generally one that builds offshore but buys existing onshore wind capacity.

Key reasons to read this report

[CLICK HERE TO VIEW] or download the table of contents of this report.

[CLICK HERE TO PURCHASE] the report ‘Wind power market entry strategies - build or buy?’