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US Wind Power Development
Earlier this week, Bloomberg reported that GE Energy was gaining ground on the world’s largest wind turbine manufacturer, Vestas. Denmark-based Vestas lost market share from 2007-2008 of 3% declining to 19.8%. GE was the principal recipient moving from 16.6% to 18.6%. Bloomberg’s report was based on the latest study by BTM Consult, an independent renewable energy consultancy.
BTM indicated that the top 10 wind turbine suppliers account for 85% of 2008 global supply. Just this year, two Chinese companies, Sinovel and Goldwind, have made the top 10 “cut.” The fastest growing markets have been China, France, the US and the UK. Growth in Asia and the Americas is expected to continue at a very high rate.
Renewable Energy World reports on the massive wind power growth observed in the Chinese market over the last three years (China Strategies LLC article). By mid 2008, more than 7 GW were installed and it was expected that the 2010 target of 10 GW would be reached almost 2 years early. Today, there are almost 70 wind turbines manufacturers up from 6 in 2004. The recent Chinese economic stimulus of ~$150 billion for renewable energy, energy efficiency and environmental projects will further boost the rapid growth.
According to data provided by the American Wind Energy Association, more than 22.5 GW of capacity have been added in the US market with another 3.2 GW under construction since 2001. In 2008, over 8.2 GW were built which was an increase of over 50% from 2007. While the financial crisis is making the financing of projects challenging, it is expected that the US (and other markets) will continue to show significant growth.
US Market Wind Manufacturers
In the US, slightly over 50% of projects developed use turbines developed by non-US companies. Outside of major US manufacturers GE and Clipper, companies in Denmark, Germany, Japan, India and Spain provide the majority of key components. Of the 22.5 GW of capacity referenced above, 12.1 GW were sourced by non-US companies and 1.9 GW of capacity under construction is non-US. In the Texas market (largest growth 6.9 GW), US companies provided only 42.2% of the installed capacity. Germany, Denmark, Japan, Spain and India contributed the most GWs.
Bringing competition closer to US companies, foreign manufacturers are setting up shop close to the US markets as Vestas recently broke ground on two new turbine factories in Colorado worth almost $300 million. Vestas’ CEO Jakobsen has indicated that he is keen to take advantage of the US Stimulus package. Siemens has also announced the development of a wind turbine research center in Boulder.
More competition brings better projects and ultimately lower prices. However, the “traditional” wind turbine companies are expressing concern when the large Chinese manufacturers set their sites on markets away from home.
[...] reported in a previous post, Wind Share, more than 50% of US wind projects are being developed and equipment sourced from non-US [...]