Solar energy prices have been falling because of auctions and wind energy is following the trend.

Clive Turton, the Asia Pacific President of world’s largest wind power equipment manufacturer, Vestas has been following the trend of falling prices due to auctions in several countries and has opined that auctions were a sign of maturity as well as a major part of structural shift in the industry. He further stated that nations were progressing towards a more transparent system, driving them to respond in terms of technology.

Ever since the government brought in the idea of auctions to award contracts to manufacturers, many Indian wind energy equipment manufacturers have gone bankrupt but Turton chose to stay optimistic since the competition is not unique to India.

The technology used in wind energy is quite advanced compared to solar energy, thus requiring more investment towards manufacturing processes of wind turbines, hardware and design of farms. Auctions will make sure that there’s more innovation in technology leading to lower manufacturing costs.

Future of Wind Energy

Improvements in wind energy have made it the the cheapest form of energy in many countries. Wind towers are now taller with larger blades and turbines. Veterans in the industry have predicted more disruption along with more innovation in the next few years as renewable energy rises to be the dominant form of energy.

There is a possibility of businesses in the renewable energy sector to become more predictable in future since the government has committed to conducting regular auctions.