EnergyWatch

Nordex: "Market can handle higher prices"

The German OEM says rising costs should be forwarded to end customers.

Photo: Nordic Investment Bank

It seems there is a broadening consensus among wind turbine manufacturers that turbine prices must be adjusted upwardly to reflect increasing raw material costs.

Vestas and Siemens Gamesa have previously indicated a need for adjustments, and now German competitor Nordex reports similarly.

"In the medium term, we need to pass on additional costs to the end clients as an industry," says Nordex Europe Chief Executive Ibrahim Özarslan in an interview with Recharge News.

Transport-related costs and steel prices, in particular, are currently generating headwinds for the industry, which also affected the most recent financials of Siemens Gamesa and Vestas.

Siemens Gamesa CEO Andreas Nauen last month told a German newspaper that the company can raise its prices by 3-5 percent as a consequence of increasing material prices, according to Recharge.

Nordex' Özarslan indicates that wind farm owners can benefit from a surge in electricity spot prices, and that the market, in his view, can therefore absorb a rise in turbine prices and still be competitive.

"We are already discussing this with our clients. The percentage increase would also be different in different geographies," he says.

The Recharge interview took place prior to the Husum Wind conference, which is held this week from Tuesday to Thursday.

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