Executive Summary: World Wind Energy Market Update 2015 a BTM

A BTM NAVIGANT WIND REPORT

Executive Summary: World Wind Energy Market Update 2015 International Wind Energy Development: 2015–2019 NOTE: This document is a free excerpt of a larger report. If you are interested in purchasing the full report, please contact Navigant Research at [email protected].

Published 1Q 2015

Jesse Broehl Senior Research Analyst

Roberto Rodriguez Labastida Senior Research Analyst

Bruce Hamilton Director World Wind Energy Market Update 2015

Section 1

PREFACE

This 20th edition of the annual World Wind Energy Market Update report covers developments in the wind energy sector during 2014. As in previous editions, this report assesses important changes over the last 3 years and provides a 5-year market forecast, followed by a projection of likely market progress for the next 5 years. Section 2, “Executive Summary,” gives instant access to the report’s main statistics and conclusions, which are eagerly anticipated by the market each year. Another key part of this report is an assessment of the separate demand and supply dynamics in wind markets globally and an assessment of wind turbine vendor market activity derived largely from wind turbine installation data provided by the wind turbine vendors.

In January 2011, BTM Consult (BTM), the premiere trending and industry growth forecaster for the international wind industry, was acquired by Navigant Consulting, Inc. and is now a key part of the firm’s research arm, Navigant Research. Navigant Research publishes the BTM Navigant wind reports, while Navigant Consulting, Inc. provides consulting services related to wind and all areas of the energy market.

ACKNOWLEDGEMENTS

Navigant Research would like to thank all who have provided input to update our market data. Without their help, it would have been difficult to collect the necessary information. A special thanks to all the wind turbine OEMs and wind project developers that supplied information and data on their activities in 2014 and to the Chinese Wind Energy Association (CWEA) for its support and cooperation in compiling data on the world’s largest wind power market.

Special thanks is also extended to three companies in the wind blade market. Production of this year’s special theme chapter on advances in the modern wind blade market were made possible through the cooperation and commentary submissions from LM Wind Power, Wetzel Engineering, Inc., and Bladena ApS. LM Wind Power is the largest independent blade manufacturer in the world, and Wetzel Engineering and Bladena are both blade design consultancies.

In addition to this report, further information related to World Wind Energy Market Update 2015 is available as a PowerPoint presentation on CD-ROM. The CD-ROM contains all the tables and graphs from the report. Please visit www.navigantresearch.com for more information.

©2015 Navigant Consulting, Inc. Notice: No material in this publication may be reproduced, stored in a retrieval system, or transmitted by any means, in whole or in part, without the express written permission of Navigant Consulting, Inc.

World Wind Energy Market Update 2015

Published by Navigant Research, the research arm of Navigant Consulting, Inc. (“Navigant”), Chicago, Illinois USA.

ISBN: 978-87-85092-53-3

www.navigantresearch.com

Phone: Denmark: +45.97.32.52.99 London: +44.20.7015.8702 U.S.: +1.303.997.7609

Contacts: Jesse Broehl Per Krogsgaard [email protected] [email protected] Roberto Rodriguez Labastida Bruce Hamilton [email protected] [email protected]

For more information about Navigant, go to: www.navigant.com.

For more information about Navigant Research, go to: www.navigantresearch.com.

Note: Government data and other data obtained from public sources found in this report are not protected by copyright or intellectual property claims.

Note: Editing of this report was closed on March 25, 2015.

BTM Consult ApS. Registered in Denmark, CVR no. 13 27 50 76 Registered office: Holstebrovej 97 DK 6950 Ringkøbing, Denmark A wholly owned subsidiary of Navigant Consulting (Europe) Ltd.

World Wind Energy Market Update 2015

Section 2 EXECUTIVE SUMMARY

2.1 Introduction This summary highlights the main developments in the international wind power market during 2014 and the key conclusions of a 5-year market growth forecast through 2019. The main points supporting a projection for likely market progress for the 5 years to 2024 are also included. The special theme of this report highlights advances occurring in the wind blade market through three expert commentary and analysis submissions.

Table 2.1 Wind Power Development, World Markets: 2014 Highlights of Wind Power Development in 2014 Global installations in 2014 of a record 51.2 GW, representing 42% growth over 2013 installations Vestas held on to the No. 1 position while Siemens jumped to second place China had a record year, with 23.3 GW of new wind power installed in 2014 Offshore wind grid connection and weather-related delays halved new offshore installations from 1,712 MW in 2013 to 852 MW in 2014 Direct drive turbines installations grew 30% and took 27% of the global market, a slight decline in market share compared to 2013 despite good overall performance Goldwind’s GW1.5 MW was the most frequently installed wind turbine in 2014 Wind power delivered at least 3.4% of the world's electricity in 2014, a figure expected to grow to 5.3% in 2019 Wind power capacity installations in 2015 are expected to keep up the momentum and grow by 8.9% (Source: Navigant Research)

2.2 Global Wind Installation Revival in 2014 The wind industry installed 51.2 GW of wind power in 2014, recovering most of the ground lost in 2013. On a global basis, the size of the annual market grew 42% year-over-year in 2014, compared to a 20% fall in 2013. This phenomenal performance helped the 5-year average growth rate to rise to 7.8% from last year’s 5.1%.

Market growth was largely supported by a policy-driven acceleration of installations in three key countries: China, Germany, and the United States. In both China and Germany, wind incentives are expected to adjust downward modestly in 2015. In the United States, wind incentives reinstated in early 2013 are coming to fruition through an extended 2014–2016 build cycle.

Brazil had a record year in 2014, as the remarkable amount of power contracts awarded in recent years translated into completed projects. Turkey, France, and Canada also helped with strong growth, while many other markets showed steady installations year-over-year to sustain a strong foundation globally. 2014 can be seen as the year in which market diversification became a reality, as deployment was seen broadly across both established and new markets such as South Africa, Uruguay, and Chile.

World Wind Energy Market Update 2015

Demand-side highlights include:

» 51.2 GW of newly installed wind power capacity, a new total yearly capacity record. » Cumulative installed capacity climbed to 372 GW by the end of 2014. » China’s market strength propelled the Asian continent; Asia’s extraordinary growth helped it pass Europe as the region with the most cumulative capacity. The continent hosts 37.3% of all the wind power capacity, 1.5 percentage points more than Europe.

» Europe held its second place position among world wind power regions. It accounted for 23.7% of 2014 global installations.

» The Americas had a particularly good year. All the countries tracked except Argentina installed more turbines than in 2013. The Americas represented 22.1% of global new installations—just 1.6 percentage points less than Europe.

» China again held the title of the world’s largest annual market with 23.3 GW of new wind power installed in 2014. Germany remained a distant second with 5.1 GW, followed by the United States with 4.9 GW.

» Brazil almost tripled new installations, adding 2.8 GW in 2014, enough to make it the fourth-largest market—the first top five appearance for the country since the first edition of this report.

» Penetration of wind power in the world’s electricity supply reached 3.4% in 2014.

» Offshore wind weather-related delays and grid connection delays halved new offshore installations from 1,712 MW in 2013 to 852 MW in 2014. However, a bumper 2015 is expected, as a significant part of the 2014 planned openings are happening in early 2015.

» Global cumulative wind capacity offshore passed the 7.5 GW milestone in 2014 and now represents 2.0% of the total wind capacity installed around the world.

World Wind Energy Market Update 2015

2.3 Significant Changes in the Top 10 Wind Turbine Supplier Ranking The revival of the U.S. and German markets meant there was a significant shake-up in the rankings of the world’s top 10 wind turbine suppliers in 2014:

» Vestas remained the No. 1 supplier after strong sales both onshore and offshore. » Siemens jumped two positions to second in 2014 due to strong sales in the offshore sector and the good shape of the German market. Had more planned 2014 offshore wind been fully commissioned and grid-connected, Siemens would have challenged Vestas’ position.

» GE Energy recovered after the renewal of wind tax credit support in its home market and rose from No. 5 to third position in a technical draw with Goldwind. Only 31 MW separate GE Wind and Goldwind.

» Goldwind dropped from No. 2 to No. 4 despite its strong performance at home. Its small footprint outside China means it did not benefit from the good year in Germany, Brazil, and the United States.

» Enercon moved down two places to No. 5, as it relies largely on the growth of its home market Germany, in which it supplied nearly 40% of the turbines installed in 2014.

» Suzlon Group rose one position to No. 6, supported by its then subsidiary Senvion (currently being divested) and its operations in India. The contraction of Suzlon in its traditionally strong market, the United States, did not allow it to recover a higher ranking. Navigant Research expects that with the division of the group, both Senvion and the remaining part of Suzlon will drop from the top 10 rankings in 2015.

» United Power moved up one position as the world’s No. 7 supplier on the rush to install capacity in China in 2014.

» Gamesa had a strong performance in the Americas and India, which allowed it to remain as one of the top 10 suppliers globally.

» Ming Yang remained as No. 9 in 2014, pulled by the growth of its home market, China. » Envision crept into last place in the top 10 supplier list in 2014 thanks to the spectacular growth in its home market, becoming the fourth Chinese manufacturer in Navigant Research’s top 10 chart. In 2013, Envision was 11th place.

World Wind Energy Market Update 2015

Figure 2.1 Top 10 Wind Turbine Suppliers, World Markets: 2014

(Source: Navigant Research)

2.4 Significant Trends in Larger Turbines and Diversification The wind power industry continues to demonstrate its ability to rapidly evolve to meet new demands in markets that face a variety of challenges, 2014 being no exception. Trends observed in 2014 include:

» The average size of wind turbines installed increased only slightly to 1,958 kW during 2014, with the largest annual average in Denmark (2,866 kW), followed by Germany (2,688 kW) and the United Kingdom (2,265 kW).

» Multi-megawatt turbines above 2.5 MW continued to increase in number, representing 18.5% of 2014 installations over 17.5% in 2013. Turbines below 1.5 MW dropped to a 1.5% share of 2014 turbine installations.

» The size of the global direct drive market in 2014 was 13,740 MW, significantly higher than the 10,560 MW that was installed in 2013. However, as a proportion of total global installed wind capacity, the 2014 installations of direct drive represent 27% of total installations, down from 28% in 2013. This breakdown includes a split between geared and direct drive units installed by Siemens, which offers both drivetrains.

» Tough market conditions continued to force turbine suppliers to search for growth elsewhere. As well as investing in emerging markets in Brazil and Mexico, OEMs are securing opportunities in Chile, Uruguay, Eastern European markets, and Africa.

World Wind Energy Market Update 2015

» The focus on product diversification continued to grow, with wind turbine vendors designing machines for maximum energy production in low wind speed areas, for operation in high altitudes or in cold climates, or for areas with blade tip height restrictions.

» All turbine OEMs continued to market and evolve larger rotor machines. This is leading to new blade designs, manufacturing processes, new sourcing strategies, and new supplier partnerships.

» Towers continued to follow the evolution of rotors. Larger blades are the primary focus in product evolution, followed by taller towers. Turbine vendors and tower suppliers are providing broader offerings of tubular steel, bolted steel shell, concrete, hybrid concrete, and advanced lattice designs.

» Turbine OEMs continued to diversify their businesses by aggressively pursuing the rapidly growing and stable income stream of wind turbine operations, maintenance, and services, as well as the relatively new area of wind turbine performance upgrades.

» The total number of wind plants owned by the top 15 wind asset owners is declining compared to the global cumulative capacity. In 2014, the market share held by the top 15 operator-owners decreased by almost 2 percentage points to 29.3%. This exemplifies a trend of commercial acceptance in the utility marketplace. Demand for wind plants continues to move beyond the traditional owners that are historically comfortable with wind to new owners that are now convinced of the value wind plants bring to their portfolios.

» Infrastructure yield funds (yieldcos) began to represent a growing area of wind plant ownership. Yieldcos satisfy new investor demand for assets producing fairly predictable cash flows that can be distributed as dividends while offering liquidity and transparency.

2.5 Moderate Growth Next 2 Years Ahead, but Fluctuation Is Expected After 2016 The World Wind Energy Market Update 2015 forecast is for the addition of 245,547 MW to 2019, which is slightly (2%) lower than forecast in the previous edition of the World Wind Energy Market Update. The average growth rate for annual new installations up to 2019 is expected to be 0.3% per year over the forecast period, reflecting steady installations. The average growth rate of the cumulative global installed capacity up to 2019 is expected to be 13.2% per year.

The distribution among continents of the wind power capacity forecast for construction is estimated to be:

» The Americas: 22.7% » Asia (including OECD Pacific): 47.7% » Europe: 26.3% » Rest of the world: 3.1%

World Wind Energy Market Update 2015

This report provides a forecast, incentives, and market dynamics for each country. Key highlights are the following:

» A balance is constantly evolving in countries between supporting the many positive attributes of renewables through policy while also confronting economic challenges—which leads to inconsistent policy support. The collapse of the historically strong Spanish market in 2014 and the year before is the most significant example so far, but there are others that face ups and down and outright booms and busts (as the United States sometimes experiences).

» Germany is expected to see a substantial drop in installations in 2015 due to changes to its incentive structures. This resulted in a bubble of over 5.1 GW installed in 2014, even higher than expected. Developers scrambled to get as much capacity in the ground during 2014 to secure long-term feed-in tariff (FIT) contracts before more market-oriented rates kick in for 2015 installations and beyond. These reforms are designed to moderate the market to installing around 2.4 GW–2.6 GW per year.

» A similar situation played out in China in 2014, where a record 23.3 GW was installed, also the result of a rush to install before FIT rates are modestly decreased halfway through 2015. China will still install remarkable amounts of wind capacity, but the new rates will support a more modest level not likely above 17 GW in a given year.

» A recovering U.S. market exhibits another multiyear build cycle. The 2013 extension of the Production Tax Credit/Investment Tax Credit (PTC/ITC) and the safe harbor guidance for project eligibility for the tax credits are driving the near-term forecast. New March 2015 guidance from the Internal Revenue Service (IRS) pulls the current build cycle from 2015 into 2016 for 14.8 GW built in the United States from 2015 through 2016 combined. However, the industry will continue to face PTC-induced market uncertainty after this period.

» A number of emerging European countries like Turkey, Sweden, Poland, and Romania are performing well alongside the traditionally strong markets of the United Kingdom and Germany, despite policy inconsistency that is expected to have a negative impact on growth in some of those countries.

» Offshore development was slower than expected in 2014 due to construction and grid connections delays. 2015 will see wind plants constructed in 2014 fully commissioned and grid-connected, boosting offshore installations to over 4 GW globally. The offshore forecast will modestly but steadily ramp up in Europe and China toward the end of the 5 years.

» In Latin America, Brazil and Mexico will take the lead by the end of the forecast period. Brazil is expected to become the largest wind market after the United States in the Americas. Depending on how Mexico’s energy deregulation is structured, Mexico’s growth rate is expected to increase through the forecast period.

» On the African continent, the wind power market in South Africa took off in 2014 and Navigant Research expects that to continue for the next 5 years, with wind farm construction driven by the Renewable Energy Independent Power Producers Procurement

World Wind Energy Market Update 2015

(REIPPP) program. Market growth in North African countries is also expected during the forecast period.

Figure 2.2 Annual Wind Power Development, World Markets: 2015-2019

Annual Wind Power Development Actual 1990-2014 & Forecast 2015-2019 70,000

60,000

50,000

40,000 MW 30,000

20,000

10,000

Source: BTM Consult - A Part of Navigant - March 2015 Europe Americas Asia Rest of World Existing

(Source: Navigant Research)

2.6 Special Theme Section 9: Advances in Today’s Large Wind Blade Market Section 9 of this World Wind Energy Market Update 2015 report highlights advances occurring in the wind blade according to expert commentary and analysis submissions from the world’s largest independent blade manufacturer, LM Wind Power, and blade design and consultancy firms Wetzel Engineering, Inc. and Bladena ApS. LM Wind Power covers the efficient industrialization of blade manufacturing. Wetzel Engineering provides a detailed overview and analysis of how carbon fiber plays a role in today’s and tomorrow’s wind market. Bladena provides examples of innovative blade designs employing novel load transfer techniques to increase strength without adding weight for both retrofit blade life extension and new long blade designs.

World Wind Energy Market Update 2015

Section 14 TABLE OF CONTENTS

Section 1 ...... 1

Preface ...... 1

Acknowledgements ...... 1

Section 2 ...... 3

Executive Summary ...... 3

2.1 Introduction ...... 3

2.2 Global Wind Installation Revival in 2014 ...... 3

2.3 Significant Changes in the Top 10 Wind Turbine Supplier Ranking ...... 5

2.4 Significant Trends in Larger Turbines and Diversification ...... 6

2.5 Moderate Growth Next 2 Years Ahead, but Fluctuation Is Expected After 2016 ...... 7

2.6 Special Theme Section 9: Advances in Today’s Large Wind Blade Market ...... 9

Section 3 ...... 10

Methodology and Sources ...... 10

3.1 Methodology ...... 10

3.2 Sources ...... 10

Section 4 ...... 12

Market Development in 2014: Demand Side ...... 12

4.1 Global Installation Recovers in 2014 ...... 12

4.2 Market Status of Wind Power Market by Country by End of 2014 ...... 16

4.2.1 Americas ...... 16

4.2.1.1 Policy Revival Rekindles the U.S. Wind Market for a 2014–2016 Build Cycle ...... 16

4.2.1.2 Canada Surpasses 1.8 GW Yearly Installation Levels ...... 17

4.2.1.3 Brazil’s Installations Tripled in 2014 ...... 17

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4.2.1.4 Mexico Shows Sustained Annual Growth to Close in on 2.5 GW ...... 17

4.2.1.5 Chile, Uruguay, and Other Latin American Markets Pick Up the Pace ...... 18

4.2.2 Europe ...... 18

4.2.2.1 Germany Saves Face of European Wind Power ...... 18

4.2.2.2 Strong Onshore Wind Growth Helps United Kingdom Maintain Second Position in Europe ...... 18

4.2.2.3 Spanish Policy Woes Reflected in 2014 Collapse of Wind Plant Commissioning ...... 19

4.2.2.4 France Accelerates as Permitting Challenges Ease ...... 19

4.2.2.5 Change in Italy’s Wind Policy Results in a Major Decline in 2014 Installations ...... 20

4.2.2.6 Sweden the Main Beneficiary of a Cross-Border Renewables Market with Norway ...... 20

4.2.2.7 Lack of Offshore Wind Projects Caused a Collapse of the Danish Market ...... 20

4.2.2.8 Growth beyond Traditional European Markets ...... 20

4.2.3 South and East Asia ...... 21

4.2.3.1 Wind Market in India Emerges from Transition Period ...... 21

4.2.3.2 China Breaks Installation Records ...... 21

4.2.4 OECD Pacific Region ...... 22

4.2.4.1 Australia’s Installations Fall but Momentum Continues ...... 22

4.2.4.2 Japan Suffered Another Disappointing Year Due to Strict Environmental Impact Assessment Law ...... 22

4.2.5 Rest of the World ...... 22

4.2.5.1 Rest of the World Led by North Africa and South Africa ...... 22

4.3 The Offshore Wind Market in 2014 ...... 23

4.4 Overview of Global Wind Turbine Fleet ...... 31

4.5 The Top 10 Wind Power Markets in the World ...... 33

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Section 5 ...... 35

Market Development in 2014: Supply Side ...... 35

5.1 Introduction ...... 35

5.2 Accounting Methodology and Standardization ...... 35

5.2.1 Major Changes in Wind Turbine Supplier Rankings in 2014 ...... 36

5.2.2 Top 15 Suppliers ...... 38

5.2.3 Top Wind Turbine Market Share Changes ...... 39

5.3 Positives and Negatives in Reliance on Domestic Market ...... 40

5.3.1 Comments and Methodology for Market Share Ranking: 2013–2014 ...... 42

5.3.2 Profiles of the Top 10 Wind Turbine Suppliers in 2014 ...... 45

5.3.2.1 Vestas in 2014 ...... 45

5.3.2.2 Siemens in 2014 ...... 48

5.3.2.3 GE Wind in 2014 ...... 51

5.3.2.4 Goldwind in 2014 ...... 54

5.3.2.5 Enercon in 2014 ...... 55

5.3.2.6 Suzlon Group in 2014 ...... 57

5.3.2.7 United Power in 2014 ...... 59

5.3.2.8 Gamesa in 2014 ...... 60

5.3.2.9 Ming Yang in 2014 ...... 63

5.3.2.10 Envision in 2014 ...... 65

5.3.3 Profile of Notable Turbine Vendor Outside the Top 10 in 2014 ...... 65

5.3.3.1 Nordex in 2014...... 65

5.4 Trends in the Competitive Wind Turbine Market ...... 67

5.4.1 Flexible Supply Chain Strategy Reduces Exposure to Market Risk ...... 67

5.4.2 All Turbine OEMs Are Marketing and Evolving Larger Rotor Wind Turbines ...... 67

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5.4.3 Diversification into O&M Services a Growing Trend ...... 68

5.4.4 Direct Drive Drivetrain Momentum ...... 68

5.4.5 Medium-Speed Drivetrains ...... 69

5.4.6 Improvements in Traditional DFIG Technology Challenge Trend to Direct Drive ...... 69

5.4.7 Wind Turbine Size Continues to Grow, Driven by Offshore Wind ...... 69

Section 6 ...... 74

Wind Power Plant Owners ...... 74

6.1 Overview ...... 74

6.2 Diversification of Wind Asset Ownership ...... 74

6.2.1 Main Factors Driving Wind Plant Investment ...... 75

6.2.2 Investor Types: Institutional Investors, Pension Funds, Insurance Companies, Private Equity, and Corporate Buyers...... 76

6.2.2.1 Institutional Investors and Pension Funds as Wind Plant Owners ...... 76

6.2.2.2 Insurance Companies as Wind Plant Owners ...... 76

6.2.2.3 Private Equity as Wind Plant Owners ...... 77

6.2.2.4 Corporate Companies as Wind Plant Owners ...... 77

6.2.3 Geographic Market Dynamics for Wind Plant Ownership ...... 77

6.3 The Top 5 Companies Hold Positions While Remaining 10 Shuffle ...... 79

6.4 Business Dynamics for Major Wind Plant Owners in 2014 ...... 81

6.5 Infrastructure Yield Funds (Yieldcos) ...... 83

Section 7 ...... 85

Wind Power Market Forecast and Estimates ...... 85

7.1 Overview ...... 85

7.1.1 Conditions and Issues in the Wind Industry ...... 86

7.1.2 Wind Power Market Models ...... 87

7.2 5-Year Wind Power Market Forecast for 13% CAGR to 2019 ...... 89

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7.3 Commentary by Country and Regions ...... 95

7.3.1 The Americas ...... 95

7.3.1.1 United States ...... 96

7.3.1.2 Canada ...... 97

7.3.1.3 Brazil ...... 98

7.3.1.4 Mexico ...... 99

7.3.1.5 Other Latin America Countries Picking up the Pace ...... 100

7.3.2 Europe ...... 102

7.3.2.1 Germany ...... 102

7.3.2.2 France ...... 103

7.3.2.3 Spain ...... 104

7.3.2.4 United Kingdom ...... 105

7.3.2.5 Sweden ...... 106

7.3.2.6 Italy ...... 107

7.3.2.7 Turkey ...... 108

7.3.2.8 Other European Countries with Strong Forecasts through 2019 ...... 109

7.3.3 Asia Pacific ...... 114

7.3.3.1 China...... 114

7.3.3.2 India ...... 115

7.3.3.3 Japan ...... 116

7.3.3.4 South Korea ...... 117

7.3.3.5 Australia ...... 118

7.3.4 Africa ...... 119

7.3.4.1 South Africa ...... 119

7.3.4.2 Other African Countries ...... 120

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7.3.5 Central Asia and the Middle East ...... 122

7.3.5.1 Russia ...... 122

7.3.5.2 Ukraine ...... 123

7.3.5.3 Kazakhstan ...... 124

7.3.5.4 Saudi Arabia ...... 124

7.3.5.5 Iran ...... 124

7.4 Economic Value of Global Wind Market to 2019 Forecast at €350 Billion ...... 125

7.5 Emerging Markets on Steady Course for Growth ...... 127

7.5.1 Europe’s Growing Markets Shuffle Around ...... 127

7.5.2 Asia and OECD Pacific Set for Offshore Start in Japan and South Korea ...... 128

7.5.3 The Americas Led by Canada and Brazil ...... 128

7.5.4 Rest of World Sees South Africa Take Center Stage ...... 128

7.6 Offshore Wind to Make Up a Sizable Portion of Global Wind Market by 2019 ...... 128

7.6.1 Offshore Wind Market Outlook by Country: 2015–2019 ...... 129

7.6.1.1 United Kingdom ...... 129

7.6.1.2 Germany ...... 129

7.6.1.3 Denmark ...... 130

7.6.1.4 Emerging Offshore European Wind Markets ...... 130

7.6.1.5 United States ...... 131

7.6.1.6 China...... 131

7.6.1.7 South Korea ...... 132

7.6.1.8 Japan ...... 132

7.7 Challenges Remain in the Offshore Wind Industry for 2015–2024 ...... 133

7.7.1 European Energy Policy and Regulation ...... 136

7.7.1.1 Emissions Policies Limited in Driving Wind Development ...... 136

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7.7.1.2 EU Responds to Artificially Low Carbon Prices ...... 138

7.7.1.3 Landmark Energy and Environment Policy Agreed on by Europe ...... 139

7.7.1.4 Europe’s Trouble with Targets Beyond 2020 ...... 141

Section 8 ...... 142

Penetration of Wind Power Electricity and Wind Market Structures ...... 142

8.1 Introduction ...... 142

8.2 Methodology and Assumptions ...... 142

8.3 Strong Relative Growth of Wind Contribution to Global Electricity Supply ...... 144

8.4 Constant Changes to Wind Market Structures Continue a Climate of Uncertainty ...... 146

8.4.1 Policy Update 2014 ...... 147

8.4.1.1 Australia ...... 147

8.4.1.2 Bulgaria ...... 147

8.4.1.3 Brazil ...... 148

8.4.1.4 Canada ...... 148

8.4.1.5 China...... 149

8.4.1.6 Denmark ...... 149

8.4.1.7 France ...... 150

8.4.1.8 Germany ...... 151

8.4.1.9 India ...... 152

8.4.1.10 Italy ...... 153

8.4.1.11 Japan ...... 154

8.4.1.12 Jordan ...... 154

8.4.1.13 Poland ...... 154

8.4.1.14 Romania ...... 155

8.4.1.15 Spain ...... 155

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8.4.1.16 South Africa ...... 156

8.4.1.17 Sweden ...... 156

8.4.1.18 Turkey ...... 156

8.4.1.19 United Kingdom ...... 157

8.4.1.20 United States ...... 158

8.4.1.21 Egypt ...... 158

8.4.1.22 Tanzania ...... 159

8.4.1.23 Kenya ...... 159

8.4.1.24 Austria ...... 160

8.4.1.25 Argentina ...... 160

8.4.1.26 Netherlands ...... 160

8.4.1.27 Ukraine ...... 160

8.4.1.28 Kazakhstan ...... 161

8.4.1.29 Saudi Arabia ...... 161

8.4.1.30 Iran ...... 161

Section 9 ...... 162

Special Theme: Advances in Today’s Large Wind Blade Market ...... 162

9.1 Commentary Submissions ...... 162

9.2 Carbon Fiber: An Enabling Technology for Large Wind Turbine Blades ...... 162

9.2.1 Outside Expert/Industry Commentary Submission from Amool A. Raina, Managing Director, Wetzel Engineering, Inc...... 162

9.3 New Efficient Industrialization, Driving Down Energy Costs ...... 165

9.3.1 Outside Expert/Industry Commentary Submission from LM Wind Power ...... 165

9.3.1.1 Product and Manufacturing Technology ...... 166

9.3.1.2 Optimized Capacity Utilization ...... 167

9.3.1.3 Global Footprint ...... 168

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9.3.1.4 Up for the Challenge ...... 169

9.4 New Structural Enhancements for Blades Provide Multiple Benefits ...... 169

9.4.1 Outside Expert / Industry Commentary Submission from Find Mølholt Jensen, Chief Technology Officer, Bladena ApS ...... 169

9.4.1.1 Blade Structural Enhancement Overview ...... 169

9.4.1.2 Preventing Blade Breathing ...... 170

9.4.1.3 Structural Solutions Reducing Bending and Torsion for Shear Webs and Spar Caps ...... 171

Section 10 ...... 173

Appendix A: Profiles of Leading Wind Turbine Manufacturers ...... 173

10.1 Note ...... 173

10.2 Disclaimer ...... 173

10.3 Top 10 Turbine Manufacturers ...... 173

10.3.1 Vestas Wind Systems (Denmark) ...... 173

10.3.2 Siemens Wind Power (Germany) ...... 173

10.3.3 GE Energy (United States) ...... 174

10.3.4 Goldwind (China) ...... 174

10.3.5 Enercon (Germany) ...... 174

10.3.6 Gamesa (Spain) ...... 175

10.3.7 Suzlon Group (India) ...... 175

10.3.8 United Power (China) ...... 175

10.3.9 Ming Yang Wind Technology (China) ...... 176

10.3.10 Envision Energy (China) ...... 176

10.4 Other Wind Turbine Suppliers ...... 176

10.4.1 Nordex (Germany) ...... 176

10.4.2 Alstom Wind (Spain) ...... 177

10.4.3 Acciona Windpower (Spain) ...... 177

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10.4.4 Areva Wind (France) ...... 177

10.4.5 XEMC Wind Power (China) ...... 178

10.4.6 Shanghai Electric Wind Power Equipment Company (China) ...... 178

10.4.7 Sinovel Wind (China) ...... 179

10.4.8 CSIC Haizhuang Windpower (China) ...... 179

10.4.9 Dongfang Turbine Company (China) ...... 179

10.4.10 Mitsubishi Heavy Industries (Japan) ...... 179

Section 11 ...... 181

Appendix B: Profiles of Major Sub-Suppliers...... 181

11.1 Blades ...... 181

11.1.1 LM Wind Power ...... 181

11.1.2 Tecsis Technology ...... 181

11.1.3 TPI Composites ...... 181

11.1.4 Sinomatech Wind Power Blade Company ...... 182

11.1.5 Huiteng ...... 182

11.1.6 Zhongfu Lianzhong (LZ Blades) ...... 182

11.2 Gearboxes ...... 182

11.2.1 Winergy AG ...... 182

11.2.2 ZF Wind Power ...... 183

11.2.3 Moventas ...... 183

11.2.4 Bosch Rexroth ...... 183

11.2.5 Nanjing High Accurate Drive Equipment Manufacturing Group (NGC) ...... 183

11.3 Generators ...... 184

11.3.1 ABB ...... 184

11.3.2 Siemens Industry Sector ...... 184

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11.3.3 Ingeteam ...... 184

11.3.4 Elin Motoren ...... 185

11.3.5 Leroy-Somer ...... 185

11.3.6 Yongji ...... 185

11.4 Bearings ...... 185

11.4.1 SKF ...... 185

11.4.2 Schaeffler ...... 186

11.4.3 Rothe Erde ...... 186

11.4.4 Rollix ...... 186

11.4.5 Timken ...... 186

11.4.6 NSK ...... 187

11.4.7 Liebherr ...... 187

11.5 Towers ...... 187

11.5.1 DS SM ...... 187

11.5.2 Bladt Industry ...... 187

11.5.3 SIAG Schaaf Industrie AG ...... 187

11.5.4 AMBAU ...... 188

11.5.5 CS Wind Corp...... 188

11.5.6 Trinity Structural Towers ...... 188

11.5.7 Shanghai Taisheng Wind Power ...... 188

11.5.8 Titan Group ...... 189

11.6 Other Components ...... 189

11.6.1 GE Power Conversion ...... 189

11.6.2 The Switch ...... 189

11.6.3 Brevini ...... 189

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11.6.4 Bonfiglioli ...... 189

11.6.5 Comer Industries ...... 190

11.6.6 kk-electronic ...... 190

11.6.7 CG Engineering ...... 190

11.6.8 SGB Group ...... 191

11.6.9 Pilsen Steel ...... 191

11.6.10 Taewoong ...... 191

11.6.11 PSM ...... 191

11.6.12 Euskalforging ...... 191

11.6.13 Eisengiesserei CHL Torgelow ...... 192

11.6.14 JIXIN ...... 192

11.6.15 Sakana S. Coop ...... 192

11.7 Wind Turbine Test Centers ...... 192

11.7.1 Risø DTU ...... 192

11.7.2 CENER (National Renewable Energy Center) ...... 192

11.7.3 DNV GL ...... 193

11.7.4 National Wind Technology Center (NWTC) ...... 193

Section 12 ...... 194

Appendix C: Profiles of Major Wind Project Developers/Owners ...... 194

12.1 Wind Farm Developers/Operators and Owners ...... 194

12.1.1 NextEra Energy Resources ...... 194

12.1.2 Invenergy ...... 194

12.1.3 MidAmerican Energy Company ...... 194

12.1.4 AES ...... 194

12.1.5 Duke Energy ...... 195

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12.1.6 TransAlta ...... 195

12.1.7 Iberdrola ...... 195

12.1.8 Acciona Energy ...... 195

12.1.9 E.ON ...... 196

12.1.10 RWE Innogy ...... 196

12.1.11 Vattenfall ...... 196

12.1.12 DONG Energy ...... 196

12.1.13 BP Wind Energy ...... 197

12.1.14 Scottish and Southern Energy (SSE) ...... 197

12.1.15 EDP Renewables (EDPR) ...... 197

12.1.16 Enel Green Power ...... 197

12.1.17 EDF Energies Nouvelles (EDF EN)...... 197

12.1.18 GDF Suez ...... 198

12.1.19 Eole-RES ...... 198

12.1.20 Infigen Energy...... 198

12.1.21 Eurus Energy Holdings Corp...... 198

12.1.22 China Longyuan Power Group Corp...... 198

12.1.23 Huaneng Renewables Corp...... 199

12.1.24 China Datang Corp. Renewable Power Company ...... 199

12.1.25 China Power Investment Corp...... 199

12.1.26 Shenhua Guohua Energy Investment Company ...... 199

12.1.27 CGN Wind Power ...... 200

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Section 13 ...... 201

Acronyms and Technical Units ...... 201

Section 14 ...... 205

Table of Contents ...... 205

Section 15 ...... 219

Table of Charts and Figures ...... 219

Section 16 ...... 223

Index ...... 223

Section 17 ...... 225

Sources and Methodology ...... 225

Notes ...... 225

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Section 15 TABLE OF CHARTS AND FIGURES

Table 2.1 Wind Power Development, World Markets: 2014 ...... 3

Table 4.1 Wind Power Capacity Growth Rates, World Markets: 2009-2014 ...... 13

Table 4.2 Installed Wind Capacity, World Markets: 2013 and 2014 ...... 14

Table 4.3 Installed Wind Capacity, The Americas: 2013 and 2014 ...... 14

Table 4.4 Installed Wind Capacity, Europe: 2013 and 2014 ...... 15

Table 4.5 Installed Wind Capacity, Asia: 2013 and 2014 ...... 15

Table 4.6 Installed Wind Capacity, Rest of World: 2013 and 2014 ...... 16

Table 4.7 Installed Offshore Wind Power, World Markets: 2013-2014 ...... 25

Table 4.8 Offshore Wind Test Sites, World Markets ...... 26

Table 4.9 Operating Wind Farms, World Markets: End of 2014 ...... 27

Table 4.10 Operating Wind Farms, World Markets: End of 2014 (Continued) ...... 28

Table 4.11 Offshore Wind Farms under Construction, World Markets: End of 2014 ...... 30

Table 4.12 Wind Turbines, World Markets: 2009-2014 ...... 31

Table 4.13 Average Size of Wind Turbines (kW) Installed, World Markets: 2009-2014 ...... 32

Table 4.14 Average Size of Wind Turbines (kW), Cumulative Installations, World Markets: 2009-2014 ...... 32

Table 4.15 Top 10 Wind Power Markets by Annual Installed MW: End of 2014...... 33

Table 4.16 10 Largest Wind Power Markets by Cumulative MW: End of 2014 ...... 34

Table 4.17 Growth Rates in the Top 10 Wind Power Markets: End of 2014 ...... 34

Table 5.1 Top 10 Wind Turbine Suppliers, World Markets: 2014 ...... 37

Table 5.2 Next Five Wind Turbine Suppliers in Line, World Markets: 2014 ...... 38

Table 5.3 Leading Wind Turbine Suppliers in Top 10 Markets, World Markets: 2014 ...... 42

Table 5.4 Share of Supplied MW by Top 10 Wind Turbine Suppliers, World Markets: 2010-2014 ...... 43

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Table 5.5 Top 10 Wind Turbine Supplier Market Share, World Markets: 2012-2014 ...... 43

Table 5.6 Wind Turbine Size Classes by Market Share, World Markets: 2012-2014 ...... 44

Table 5.7 Wind Turbine Size Classes by Market Share, World Markets: 2014 ...... 44

Table 5.8 Leading Suppliers in the Four Wind Turbine Size Classes, World Markets: 2014 ...... 44

Table 5.9 Leading Suppliers in the 1.5 MW-2.5 MW Size Class, World Markets: 2014 ...... 44

Table 5.10 Leading Suppliers in the Multi-MW Size Class, World Markets: 2014 ...... 45

Table 5.11 Selected MW Class of Onshore Wind Turbines in the Market ...... 71

Table 5.12 Selected MW Class of Onshore Wind Turbines in the Market (Continued) ...... 72

Table 5.13 Selected MW Class of Offshore Wind Turbines in the Market ...... 73

Table 6.1 Leading Utility and IPP Wind Farm Owner-Operators ...... 79

Table 7.1 Forecast for Wind Power Development, World Markets: 2015-2019 ...... 91

Table 7.2 Forecast for Wind Power Development, The Americas: 2015-2019 ...... 91

Table 7.3 Forecast for Wind Power Development, Europe: 2015-2019 ...... 92

Table 7.4 Forecast for Wind Power Development, Asia: 2015-2019 ...... 92

Table 7.5 Forecast for Wind Power Development, Rest of World: 2015-2019 ...... 93

Table 7.6 Forecast for Offshore Wind Power Development, World Markets: 2015-2019 ...... 94

Table 7.7 Offshore Wind Power Development, World Markets: 2015-2019 ...... 133

Table 7.8 Renewable Energy Targets for EU States under the 20% by 2020 Policy ...... 140

Table 8.1 Penetration Rate of Wind Power in Select Countries ...... 142

Table 8.2 Estimates of Electricity from Wind Power Capacity by Country, World Markets: 2014 and 2015 ..... 143

Table 8.3 Growth of Wind Power Compared to Electricity Generation, World Markets: 1996-2014 ...... 144

Table 8.4 Contribution of Wind Power to Worldwide Electricity Generation, World Markets: 1996-2024 ...... 145

Table 9.1 Structural Solution to Blade Breathing ...... 171

Table 9.2 Structural Enhancement to Shear Web Structure ...... 172

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Figure 2.1 Top 10 Wind Turbine Suppliers, World Markets: 2014 ...... 6

Figure 2.2 Annual Wind Power Development, World Markets: 2015-2019 ...... 9

Figure 4.1 Annual and Cumulative Wind Energy Development, World Markets: 1983-2014 ...... 13

Figure 4.2 Total Installed Wind Power Capacity, World Markets: End of 2008, 2011, and 2014 ...... 23

Figure 4.3 Offshore Wind Turbine OEM Market Share, Installed, World Markets: 2014 (MW and %) ...... 29

Figure 5.1 Typical Onshore Wind Turbine Development Timeline ...... 36

Figure 5.2 Top 10 Wind Turbine Suppliers, World Markets: 2014 ...... 38

Figure 5.3 Change in Wind Turbine Market Share: 2013-2014 ...... 39

Figure 5.4 Global Footprint of Top 10 Wind Turbine Manufacturers, World Markets: 2014 ...... 41

Figure 5.5 Vestas Wind Installations (MW) by Country: 2014 ...... 46

Figure 5.6 Siemens Wind Installations (MW) by Country: 2014 ...... 49

Figure 5.7 Siemens Proportion of Geared vs. Direct Drive Installations: 2014 ...... 50

Figure 5.8 GE Wind Installations (MW) by Country: 2014 ...... 52

Figure 5.9 Enercon Wind Installations (MW) by Country: 2014 ...... 56

Figure 5.10 Suzlon Group Wind Installations (MW) by Country (including Senvion): 2014 ...... 58

Figure 5.11 Gamesa Wind Installations (MW) by Country: 2014 ...... 61

Figure 5.12 Nordex Wind Installations (MW) by Country: 2014 ...... 65

Figure 6.1 Market Share of Major Utilities and IPPs, World Markets: 2014 ...... 80

Figure 7.1 Cumulative Installed Wind Capacity by Region, World Markets: End of 2014 and 2019 ...... 95

Figure 7.2 Forecast of Annual Wind Installations, World Markets: 2015-2019 ...... 95

Figure 7.3 Netherlands Wind Turbine Market Share, Supply Side: 2014 ...... 109

Figure 7.4 Poland Wind Turbine Market Share, Supply Side: 2014 ...... 110

Figure 7.5 Romania Wind Turbine Market Share, Supply Side: 2014 ...... 111

Figure 7.6 Denmark Wind Turbine Market Share, Supply Side: 2014 ...... 112

Figure 7.7 Austria Wind Turbine Market Share, Supply Side: 2014 ...... 112

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Figure 7.8 Ireland Wind Turbine Market Share, Supply Side: 2014 ...... 113

Figure 7.9 Finland Wind Turbine Market Share, Supply Side: 2014 ...... 113

Figure 7.10 Wind Power Demand, World Markets: 2014-2019 ...... 127

Figure 7.11 Annual Wind Power Development, World Markets: 1990-2014 and 2015-2023 ...... 135

Figure 7.12 Cumulative Installed Wind Capacity, World Markets: 2019 and 2024 ...... 135

Figure 7.13 Cumulative Wind Power Development, World Markets: 1990-2024 ...... 136

Figure 7.14 EUA Emissions Credits (€): Historic for 2008 to-1Q 2015, Forecast between 2015 and 2021 ...... 138

Figure 9.1 Standard Fiberglass Blade vs. Carbon-Based Blade, AEP Comparison ...... 164

Figure 9.2 Normalized Cost of Energy, Fiberglass Blade vs. Carbon Fiber Blade ...... 165

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Section 16

INDEX

ABB ...... 184 Ecotécnia ...... 177 Acciona ...... 39, 77, 81, 103, 120, 177, 192, 195 EDF EN ...... 80, 82, 156, 197, 201 AES ...... 194 EDF Energies Nouvelles ...... 82, 197 Alpha Ventus ...... 178, 188 EDP ...... 74, 197 Alstom ...... 24, 39, 45, 53, 69, 70, 120, 131, 174, 177, EDP Renewables ...... 81 184, 186 EDPR ...... 62, 74, 81, 197, 201 Alstom Wind ...... 177 EEG ...... 18, 102, 129, 151, 152, 201 AMBAU ...... 188 EHN ...... 177 AMSC ...... 179 Eisengiesserei ...... 192 Areva ...... 24, 45, 63, 69, 70, 175, 177 Eisengiesserei CHL Torgelow...... 192 Areva Wind ...... 24 Elin Motoren ...... 185 Babcock & Brown ...... 198 EMR ...... 157, 201 Blackstone...... 77 EnBW ...... 188 Bladena ...... 1, 9, 162, 169, 170, 171, 172 Enel ...... 46, 74, 80, 82, 120, 197 Bladt Industry ...... 187 Enel Green Power ...... 82, 197 Bonfiglioli ...... 189 Enercon . 5, 17, 18, 19, 32, 36, 40, 51, 54, 55, 56, 57, Bosch Rexroth ...... 183 59, 68, 69, 70, 97, 174, 192 BP Wind Energy ...... 197 Envision ...... 5, 22, 24, 29, 37, 40, 65, 176 Brevini ...... 189 Eole-RES ...... 198 CDM ...... 137, 138 Essent ...... 196 CENER ...... 192 ETS ...... 88, 137, 138, 202 CER ...... 61, 201 EU Energy ...... 141 CERs ...... 138 EU ETS ...... 137 CfD ...... 103, 125, 129, 157, 201 European Commission ...... 75, 139, 140, 141 CG ...... 190 Eurus ...... 198 CG (formerly Pauwels) ...... 190 Euskalforging ...... 191 CGN Wind Power ...... 200 FAG ...... 186 China Datang Corp...... 199 FIT.... 8, 33, 77, 82, 85, 87, 88, 90, 97, 102, 103, 109, China Longyuan Power Group ...... 198 113, 114, 115, 116, 117, 119, 120, 122, 124, 129, China Power Investment Corp...... 80, 199 147, 148, 149, 150, 151, 152, 154, 155, 156, 157, China Three Gorges Corp...... 74, 81, 197 158, 159, 160, 161, 202 Comer Industries ...... 190 Flender ...... 182 Converteam ...... 189 FPL ...... 194 COP 15 ...... 140 Gamesa . 5, 17, 18, 21, 24, 37, 40, 41, 45, 58, 59, 60, Crown Estate ...... 129 61, 62, 63, 69, 70, 103, 120, 121, 164, 175, 178, CS Wind Corp...... 188 181, 183 Datang Corp...... 74, 199 GBI ...... 21, 90, 115, 152, 202 DFIG ...... 62, 64, 69, 176, 201 GDF Suez ...... 74, 80, 103, 120, 151, 198 directive on renewable electricity ...... 137 GE .... 5, 10, 17, 21, 22, 32, 36, 39, 41, 43, 48, 51, 52, DMI Industries ...... 188 53, 54, 58, 60, 68, 69, 120, 174, 177, 181, 183, DNV GL ...... 51, 54, 70, 193 184, 189, 192, 202 DONG ...... 82, 196 GE Energy ...... 5, 17, 36, 120, 174, 177, 189 DONG Energy ...... 45, 82, 196 GE Wind ...... 5, 21, 22, 36, 43, 51, 52, 53, 181 Dongfang ...... 179 Goldwind .. 3, 5, 22, 36, 39, 41, 48, 54, 55, 68, 69, 70, DS SM ...... 187 78, 121, 174, 182, 185, 192 Duke Energy ...... 195 Guohua Energy ...... 74, 80, 199 E.ON ...... 74, 75, 80, 81, 82, 170, 196 Hansen Transmissions ...... 183 E.ON Climate and Renewables ...... 196 Horns Rev. 3 ...... 79, 130, 133, 150

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Huaneng New Energy ...... 199 RWE Innogy ...... 196 Huaneng Renewables Corp...... 80, 199 Sakana ...... 192 Huiteng ...... 182 Sakana S. Coop ...... 192 Iberdrola ...... 18, 63, 74, 77, 81, 103, 121, 195, 198 Schaeffler ...... 186 IEA...... 144, 145, 146, 202 Scottish and Southern Energy ...... 197 Infigen ...... 198 SeaAngel ...... 24, 70, 179 Ingeteam ...... 184 SGB Group ...... 191 Invenergy ...... 76, 80, 194 Shanghai Electric ...... 178 ITC...... 8, 16, 88, 90, 96, 158, 202 Shanghai Taisheng Wind Power ...... 188 Jahnel Kestermann ...... 191 Shenhua ...... 74, 80, 199 JIXIN ...... 192 SIAG Schaaf Industrie ...... 187 kk-electronic ...... 190 SIAG Schaaf Industrie AG ...... 187 Kyoto Protocol ...... 137, 138 Siemens3, 5, 6, 17, 19, 20, 21, 22, 23, 24, 29, 32, 36, Leroy-Somer ...... 185 39, 45, 48, 49, 50, 51, 54, 59, 68, 69, 70, 97, 120, Liebherr...... 187 131, 134, 169, 173, 178, 182, 184, 186, 192 LM Wind Power ..... 1, 9, 55, 162, 165, 166, 167, 168, Sinomatech ...... 55, 182 169, 181 Sinovel...... 70, 179, 192 Longyuan Power Group ...... 74, 80 SKF ...... 185 Micon ...... 10 Skoda Steel...... 191 MidAmerican Energy ...... 50, 194 SSE ...... 197 Ming Yang .... 5, 22, 24, 29, 37, 40, 60, 63, 64, 65, 70, Suzlon ...... 37, 40, 57, 192 176 Suzlon Group 5, 10, 18, 19, 21, 22, 37, 40, 41, 57, 58, Mitsubishi ...... 70, 173, 179 59, 175 Moventas ...... 183 Taewoong ...... 191 Multibrid ...... 177 Tecsis Technology ...... 181 Nanjing...... 183 The Switch ...... 189 National Wind Technology Center ...... 193 Thornton Bank ...... 82 NextEra Energy Resources ...... 194 Timken ...... 186 NGC ...... 183 Titan Group ...... 189 Nordex .. 38, 65, 66, 67, 164, 176, 181, 183, 184, 192 TPI Composites ...... 62, 63, 67, 181 NSK ...... 187 TransAlta ...... 195 Nuon ...... 196 Trinity Structural Towers ...... 188 OECD ...... 7, 13, 22, 89, 128, 145, 203 United Power...... 5, 22, 37, 40, 59, 60, 70, 175 Pauwels ...... 190 UTC ...... 204 Pilsen Steel ...... 191 Vattenfall ...... 49, 78, 133, 150, 170, 196 PMG ...... 51, 55, 68, 69, 70, 177, 203 Vensys ...... 174 PSM ...... 191 Vestas 3, 5, 10, 17, 18, 19, 20, 21, 24, 29, 32, 36, 39, PTC ...... 8, 16, 88, 90, 96, 158, 203 41, 45, 46, 47, 48, 54, 63, 68, 69, 70, 120, 121, REIPPP ...... 90, 119, 204 122, 124, 134, 164, 173, 180, 181, 183, 189 REpower ...... 175 Wetzel Engineering...... 1, 9, 162, 164, 165 RES ...... 20, 46, 66, 75, 87, 96, 110, 154, 204 Windtec...... 179 Risø ...... 169, 192 Winergy ...... 59, 182 Risø DTU ...... 192 yieldcos ...... 7, 83, 84, 204 Rollix ...... 186 Yongji ...... 55, 185 Rothe Erde ...... 186 Zephyros ...... 178 RPS ...... 75, 117, 204 ZF Wind Power ...... 183 RWE ...... 81, 82, 196 Zhongfu Lianzhong ...... 182

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Section 17 SOURCES AND METHODOLOGY

The key component of Navigant Research’s analysis is primary research gained from phone and in-person interviews with industry leaders including executives, engineers, and marketing professionals. Analysts are diligent in ensuring that they speak with representatives from every part of the value chain, including but not limited to technology companies, utilities and other service providers, industry associations, government agencies, and the investment community.

Additional analysis includes secondary research conducted by Navigant Research’s analysts and its staff of research assistants. Where applicable, all secondary research sources are appropriately cited within this report.

These primary and secondary research sources, combined with the analyst’s industry expertise, are synthesized into the qualitative and quantitative analysis presented in Navigant Research’s reports. Great care is taken in making sure that all analysis is well-supported by facts, but where the facts are unknown and assumptions must be made, analysts document their assumptions and are prepared to explain their methodology, both within the body of a report and in direct conversations with clients.

Navigant Research is a market research group whose goal is to present an objective, unbiased view of market opportunities within its coverage areas. Navigant Research is not beholden to any special interests and is thus able to offer clear, actionable advice to help clients succeed in the industry, unfettered by technology hype, political agendas, or emotional factors that are inherent in cleantech markets.

NOTES

CAGR refers to compound average annual growth rate, using the formula:

CAGR = (End Year Value ÷ Start Year Value)(1/steps) – 1.

CAGRs presented in the tables are for the entire timeframe in the title. Where data for fewer years are given, the CAGR is for the range presented. Where relevant, CAGRs for shorter timeframes may be given as well.

Figures are based on the best estimates available at the time of calculation. Annual revenues, shipments, and sales are based on end-of-year figures unless otherwise noted. All values are expressed in year 2015 U.S. dollars unless otherwise noted. Percentages may not add up to 100 due to rounding.

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Published 1Q 2015

Navigant Research has provided the information in this publication for informational purposes only. The information has been obtained from sources believed to be reliable; however, Navigant Research does not make any express or implied warranty or representation concerning such information. Any market forecasts or predictions contained in the publication reflect Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in the publication. Navigant, and its subsidiaries and affiliates hereby disclaim liability for any loss or damage caused by errors or omissions in this publication.

Any reference to a specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply an endorsement, recommendation, or favoring by Navigant Research.

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Note: Government data and other data obtained from public sources found in this report are not protected by copyright or intellectual property claims.

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Contacts Jesse Broehl Per Krogsgaard Ilaria Cireddu Senior Research Analyst Director Sales Navigant Research Navigant Research Navigant Research Main: +1.303.493.5476 Main: +45.97.32.52.99 Main: +44.207.015.8702 [email protected] [email protected] [email protected]

Roberto Rodriguez Labastida Senior Research Analyst Navigant Research Main: +44.207.015.8751 [email protected]

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