Wind Power's 'Colossal Market Failure' Threatens Climate Fight

[NickB79]

https://www.bloomberg.com/news/articles/2022-04-25/wind-power-s-colossal-market-failure-threatens-climate-fight

Optimism abounds about the future of wind power, with a clean-energy boom powering robust growth in an industry that businesses and governments agree is key to slowing climate change. But a nagging problem could keep the sector from fulfilling that promise: Turbine makers are still struggling to translate soaring demand into profit.

Wind power heavyweights Vestas Wind Systems A/S, General Electric Co. and Siemens Gamesa Renewable Energy SA are reeling from high raw material and logistics costs, changes in key clean-power subsidies, years of pressure on turbine prices and an expensive arms race to build ever-bigger machines.

“What I’m seeing is a colossal market failure,” said Ben Backwell, chief executive officer of trade group Global Wind Energy Council, noting a mismatch between government targets for new wind power and what’s happening on the ground. “The risk is we’re not on track for net zero [emissions] -- and the other risk is the supply chain contracts, instead of expanding.”

Western turbine manufacturers are now retrenching to shore up their bottom lines. The companies say they’ll compete for fewer projects in fewer markets, raise prices, streamline their product lineups and cut manufacturing costs. That comes just as surging fossil fuel prices should be making renewables more competitive.

Well, crap.

[brush]

1. Isn't the lack of effiecient storage and transmission solutions...

are big part of the problem?

Seems the industry should've put as much R&D into storage and transmission solutions as they did energy generation. They could've had two intertwined industries supporting each other and delivering revenue and jobs.

[NNadir]

2. I don't think it's just a colossal market failure.

It's also a colossal environmental failure as well.

Despite all the cheering for this exercise in keeping iron and coal mines active, it has proved useless in addressing climate change. It's a lesson in popular wishful thinking.

[Caribbeans]

3. China in the article

"Chinese companies could grab more of market as rivals stumble"

"There could also be geopolitical implications from the U.S. and European companies’ challenges, as Chinese rivals move to expand outside their home market."

It's not the failure of wind turbines, it's China and complications from the lockdowns

A slowdown in U.S. turbine manufacturing risks further weakening the country’s energy independence. Already, it counts on Chinese manufacturers for much of its supply of solar panels -- a reliance that has contributed to trade tensions between the countries.

Now, Chinese competitors see opportunity in the wind market. Companies including Xinjiang Goldwind Science & Technology Co., Envision Group and Ming Yang Smart Energy Group Ltd. plan to invest in factories abroad to take market share.

China seems to be able to do what the US cannot, when it comes to Wind, Solar and now Hydrogen