Siemens: Wind companies must reduce costs

An executive from Siemens AG, one of the top 10 manufacturers of wind turbines in the world, talked recently on the need for the wind power sector to drastically reduce costs, according to Reuters.

Felix Ferlemann, chief executive of Siemens Wind Power, spoke at the the European Wind Energy Association's annual conference, calling on the industry to compete to reduce costs as more governments are pressured to reduce the subsidies many wind companies still rely upon.

"Currently, profitability is not always given," Ferlemann told attendees. "The wind industry struggles with low margins ... This is not a sustainable situation. We are under pressure to reduce costs quickly. And we have made this our highest priority."

Reuters reported last week that Italy issued new limits on its renewable energy subsidies, primarily targeting that country's major solar power industry, but also a blow to wind energy in the nation.

Meanwhile, MarketWatch reports that the Global Wind Energy Council sees limited prospects for the wind power sector in both the U.S. and Europe, though some newer markets have opened up to replace them.

More information on emerging wind markets like Argentina can be found at PennEnergy's Research area.

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