Since late 2008, global turbine prices have dropped by 18 per cent for deliveries in the first half of 2010. A report on the wind energy industry in India expects wind turbine prices to fall from Rs 5.35 crore a MW now to Rs 5 crore by 2010, and stabilise at that level.
In India, the report notes, turbine prices have always been lower than the global average, thanks to lower labour and production costs.
While prices went up globally during 2006-08 due to higher raw material costs, shortages in the supply chain for components, the financial crisis reversed this trend. As financing for new projects became difficult, the backlogs in component supply eased.
Turbine prices are most important factor affecting generation costs.