Today’s European wind power players face the challenges of a maturing market. There are fewer suitable sites for new projects, citizen opposition to expansion is growing, and the reduction in subsidies coupled with significant regulatory restrictions are all creating fierce competitive pressure. Nonetheless, onshore wind power offers a substantial number of benefits that will allow it to remain Europe’s most important source of renewable energy. This means potential for considerable growth, but action must be taken.
When levelized costs are compared alongside other renewable energies as well as traditional sources , onshore wind power emerges as one of the most attractive options today. In fact, only hydropower revealed itself to be cheaper, yet it offers little opportunity to further increase its usage. This fact alone places onshore wind in an advantageous position for future market leadership among renewable energies.
Market players must address six levers to maximize the cost advantages. With appropriate consideration given to maintenance issues, land lease costs, repairs, insurance, project management, and the cost of capital, wind farms could reduce their operating costs by up to 45%. Looking at the 477 onshore wind farms currently installed in Germany, this could mean a profit boost of more than 300 million euros.
Our exclusive 2015 study on onshore wind farms keeps its focus on Germany, yet reveals valuable insights into current developments that can be applied across the European marketplace. It is now essential to harness wind power’s particular market strengths, hone in on the markets offering the largest potential for growth, and keep a keen eye on the lessons that can be learned from solar power—continued investment in R&D, for example, is essential. With these points in mind, key players will have everything they need to chart a successful course into wind power’s future in the European market.
Today’s European wind power players face the challenges of a maturing market. There are fewer suitable sites for new projects, and citizen opposition to expansion is growing.
