The price of most steel products is now about 75% higher than it was two years ago, making further increases in wind turbine prices likely. That may erode the competitive position of wind against electricity costs from fossil fuels. Although the price of oil has dropped from its peak of around $150 a barrel, the risk of another surge is high, putting wind in a strong position. Wind is also likely to be able to secure finance more easily than nuclear, given nuclear's long lead times and history of cost overruns. Ensuring that markets are robust for wind energy is paramount, however. Markets with prices linked to fossil fuels are likely to be regarded as reasonably secure.
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Senior Renewable Energy Analyst (WindGEMINI Product Lead) DNV GL Bristol (City Centre), City of Bristol