Increases in commodity and logistics costs are expected to see wind turbine prices rise by as much as 10% over the next 12 to 18 months, according to a new report.
Analysts at consultancy Wood Mackenzie also warn that longer term supply chain issues could pose issues for decarbonisation targets in some countries.
The report said rising costs of steel, copper, aluminium, coupled with a four-fold increase in logistics costs, have already seen increased turbine prices over the last six months.
Turbine prices are expected to return to normal levels by the end of 2022, but the consultancy has warned that manufacturers and turbine suppliers must adopt next-generation technologies and materials because supply chain bottle necks for important materials will emerge over the next four to five years as demand for turbines continues to grow.
Shashi Barla, Wood Mackenzie Principal Analyst said: “If the capacity of critical capital components and raw materials does not expand over the next two years, the wind turbine industry will encounter supply constraints that could pose issues for country-level decarbonisation targets.”
Barla cited bearings, semi-conductors and carbon fibre as some of the critical components at risk of future shortages.