Does the Economic Slowdown Have Positive Sides?
First of all, equipment prices will inevitably follow the raw material prices that sharply decreased in September- November 2008. For example, wind towers accounting for up to 20-23% of the total wind turbine cost, the second most expensive element after blades, are predominantly made of steel. Steel prices after reaching an all time historic maximum in June-September 2008 crushed down to December 2007 levels in less than 3 months. Another factor contributing to a fall in prices is an increased level of competition along the value chain. The new reality will foster a fiercer competition between the suppliers, creating a growth opportunity for those who are capable of reducing their costs and prices faster. Secondly, delivery and construction times will see a huge improvement which, in turn, will make the project lifecycle shorter, allowing for faster commissioning and a shorter wait until the project delivers its first revenues. Lastly, the asset valuations that jumped out of control r
