COPENHAGEN, (Reuters) – The head of Siemens Gamesa said Wednesday that the decade-long effort to lower the cost of generating electricity could be stopped. This would make it more difficult for turbine manufacturers to invest in new technology.

An investment boom in green energy, which addresses climate change, has brought down wind power’s cost to the point where it is comparable to fossil fuels like coal.

“What we’ve clearly achieved is that wind power is now cheaper than anything else. But I believe we shouldn’t make it too cheap,” Chief Executive Andreas Nauen told Reuters.

Bernstein research shows that solar and wind power are much more affordable in Europe than either coal or natural gas.

The green transition is driving record-breaking demand for wind power, although lower prices have reduced margins and there has been increased competition.

Nauen stated that “we have probably taken it too far.” If the push to lower the cost of wind energy continues, it will impact the ability for the industry to continue investing in new technologies.

The rising cost of raw materials and the shortage are affecting wind turbine manufacturers’ margins.

Siemens Gamesa and Vestas, its main rival, both claimed they were able pass part of higher costs onto customers. It is possible that this will be seen in increased auction prices and power buy agreements.

Vestas reduced its 2021 outlook earlier this month and expects an operating profit margin in the range of 4% to 7%, compared with 5-7% before. That is a huge improvement on its long-term goal for 10%.

Siemens Gamesa also set out the goals it hopes to achieve its long-term margin targets of 8-10%, 2024 and 2025. This is a change from 2023.

Global governments are gradually eliminating generous wind subsidies and opting instead for competitive tenders. They favor project developers who submit the lowest bids.

“We need to change auction systems in the future,” Nauen said. Nauen suggested local job creation as a criteria to be used instead of price.