Strong winds, low population densities and favourable geographic terrain have helped maintain long-standing wind developer appeal in key Nordic countries. Add to this the lower land costs and a stable regulatory environment and it’s easy to see why project builders have capitalised on the market and sought to drive increased efficiencies through the relentless pursuit of scale.
However, with increased wind proliferation, electricity prices within the competitive wholesale markets, have for many, remained worryingly low. While in the short term this has put conventional thermal power plants under pressure, there’s rising concern that the downward pressure on pricing, may struggle to reflect the levelized cost of energy (LCOE) and find a realistic long-term price floor.
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