US wind turbine prices plummet below $1m per MW
The price for US wind turbines delivered in H2 2017 has reached a low of $830,000 per MW. The price is significantly below the global average for wind energy of $990,000 per MW. The fall is on the back of fierce competition as developers rushed to qualify projects for the final round of a federal subsidy programme, which led to an 11 GW increase in orders in late 2016.

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

Price falls well below $1 million per megawatt

Looming end of tax credit beckons turbine-maker competition

United States and global wind turbine prices by delivery date

Note: Price of contract is calculated on day of signing and quoted by date of delivery. Source: Bloomberg New Energy Finance

The price for U.S. wind turbines delivered in 2H 2017 dropped to $0.83 million per megawatt, according to Bloomberg New Energy Finance’s Wind Turbine Pricing Index – well below the global average price of $0.99 million per megawatt. Fierce price competition between turbine manufacturers to secure as much of a surge in 2016 orders drove the rapid U.S. pricing plunge. The 11 gigawatt surge in 2016 turbine and equipment orders – delivered at most 3.5 months after 2016 – was a direct result of developers rushing to qualify as many projects possible for the final round of 100 percent of U.S. wind’s main federal subsidy.

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