China’s wind turbine costs have bottomed out, says Goldwind

China’s greatest wind turbine maker said there’s no more space at costs to fall in the biggest market after a dramatic decrease in costs. Costs for turbines in China have plunged from about $700,000 per megawatt in mid 2020 to about $470,000 toward the end of last year, and bids for new projects are averaging about $370,000 now, as per BloombergNEF. Rather than looking for even lower costs, developers ought to move their focus to quality and long-term profits on investment, Xinjiang Goldwind Science and Technology Co. Executive Wu Gang expressed Friday in an online question and answer session.

China’s wind turbine costs have plummeted amid growing domestic competition after the government stopped subsidizing projects at the end of 2020. The drop has come even as prices have risen in Europe amid surging power costs.

“The price of wind turbines has reached the bottom,” he said. “There is no room for further price declines.”

Goldwind, which supplied more turbines in China than any other company, and second-most in the world, is focusing on larger models to drive future growth, Wu said. The company this year will launch a 7-megawatt onshore turbine and a 15-megawatt offshore version, he said.

The company also expects to receive a cash infusion if the government pays off overdue clean power subsidies, as expected. Goldwind is owed more than 5 billion yuan, President Cao Zhigang said Friday.

By Patrick Huston,