Global Wind Market Shows Long Term Growth

The U.S. market for wind energy bounced back this year; and now a new study finds that the long-term outlook for the global wind energy market also looks promising. Although the study finds that short-term investment in the sector will remain slow through the end of 2011; investment in the market will return to its previous highs ($34 billion in 2008) by 2012, and increase to more than $68 billion by 2025.

According to IHS Emerging Energy Research’s Global Wind Turbine Markets and Strategies: 2011-2025 report, worldwide installed wind capacity will increase from 188 GW to over 940 GW during this period. Key factors driving this growth will be sustained long-term demand for renewable energy, intensifying competition between Asian and European suppliers, a shift toward larger turbine manufacturing and consolidation of wind turbine buyers.

Wind power

image via Shutterstock

The report also analyzes the strategies of leading and emerging turbine manufacturers. According to the study, increasing competition from Asian suppliers and an abrupt drop in demand have created a challenging environment for manufacturers.

Ongoing globalization of manufacturing has kept average prices for turbines (plus towers) below $910 / kW in 2011. “Pricing in the global wind turbine market has undergone rapid shifts in the last two and a half years,” said Marc Mühlenbach, Global Wind Energy Advisory service analyst for IHS. “The recession hitting the market in 2009 moved the industry from a seller’s to a buyer’s market and it remains that way.”

Lauren Craig is a writer and consultant living in Seattle, WA. She holds an M.S. in International Development from Tulane University, and is co-founder of Sustainable Systems Integrators, LLC., an employee-owned solar energy design and installation firm in New Orleans, LA. She is also certified in PV design and installation by the North American Board of Certified Energy Practitioners (NABCEP).

Be first to comment