Wind power industry must focus on cost reduction, Siemens executive saysThe chief executive of Siemens Wind Power said this week that alternative energy companies must focus on cost reduction in order to maintain competitiveness.

The global wind power sector has grown at a rapid clip over the past decade, as European and Asian countries, as well as the U.S., have bolstered the sustainable energy sector. The U.S. federal government has offered green companies tax incentives and subsidies aimed at propping up the sector, and governments elsewhere in the world have similarly promoted such favorable tax programs.

However, a number of such tax incentives are set to expire this year, and industry watchers are fearful that without government support, the wind power sector will be unable to compete with traditional energy producers. Felix Ferlemann, the chief executive at Siemens Wind power, said that in order to ensure their future, wind power producers must scrutnize business cost reduction initiatives.

"Currently, profitability is not always a given," he said. "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."

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