WIND ENERGY The Iberian Peninsula has many excellent wind power locations. More and more wind farms are springing up in Spain and Portugal. Photos (3): Jan Oelker Splendid prospects The worldwide use of wind power is developing strongly. Unlimited opportunities in North America More and more markets are opening up, so that the boom In the USA the »Production Tax Credit«, PTC, is the driv- is not dependent on just a few countries. North America ing force. Unfortunately, for many years the US govern- ment didn’t feel able to grant the PTC on a long-term and Asia are growing in importance, but Europe will stay basis. Again and again there were interruptions to this support mechanism, so that the market was affected by dominant for the time being. a »yo-yo effect«, which was a problem for manufactur- ers (see diagram). There was a regular up and down on the US market. The manufacturer GE Energy, which is especially dependent on the US market, felt the effects particularly strongly, and the turnover dropped dramat- ll renewable energies are currently being expand- ically in 2004 (see table 2). ed strongly, but wind power is growing the Now, however, the situation seems to be calming fastest. The reasons are clear: The technology is down. In September 2005 the US government extend- mature, the costs per kilowatt hour are relative- ed the PTC until the end of 2007. This provided an ac- ly low and construction takes very little time. ceptable amount of security for investments and the Many governments are trying to reduce their depen- market has grown steadily since then. In 2005 over A dence on oil and build up an energy supply independent 2,400 MW joined the grid in the USA. This year, approx. from imports as quickly as possible. This plan obviously 3,200 MW are expected to be installed. Given the con- can’t be achieved just like that. But with the help of tinued scarcity of oil on the markets, the chances are wind power, relatively quick steps can be taken in the good that the government will continue to support right direction. wind power for longer and will extend the PTC for a fur- Measures by the state, first in Denmark, later in Ger- ther two years. This would probably make the US mar- many, Spain and now above all in the USA, have encour- ket the world leader until the end of 2009. aged the expansion of wind power use. The political in- Because the market is also growing strongly in Can- struments are varied. They range from legally set feed- ada, North America is becoming a big sales market. in tariffs to tax credits and the trading of green certifi- Enormous energy demands, large sparsely populated cates. The success of these measures can be seen in the areas and good wind power conditions are good pre- growth in installed power in the individual countries requisites for a sustained boom – if the political frame- (see table 1). work stays positive. 160 Sun & Wind Energy 2/2006 2003 2004 2005 USA 1,687 389 2,431 Germany 2,674 2,054 1,808 Spain 1,377 2,064 1,764 India 423 875 1,253 Portugal 107 274 502 China 98 198 498 Italy 116 357 452 UK 195 253 447 Milano Convention France 91 138 389 Centre, Milan, Italy Australia 50 182 296 7-10 May 2007 Canada 81 123 239 Austria 285 192 218 Mark your diaries! Japan 275 230 168 Ireland 63 148 159 Netherlands 233 199 154 Greece 76 61 118 Table 1: an overview Norway 4 57 117 of the leading markets Others 508 360 394 (all fi gures in MW) Total 8,343 8,154 11,407 Source: BTM Consult 2003 2004 2005 Vestas 1,812 2,783 3,186 Table 2: the eight larg- EWEC is the “Annual General Meeting” for est manufacturers in GE Energy 1,503 918 2,025 the international wind sector. It is the only the years 2003 to 2005 Enercon 1,218 1,288 1,505 wind energy forum that brings together all the disciplines that affect the wind industry (all fi gures in MW) Gamesa 956 1,474 1,474 - business; policy; science; and technology - Source: BTM Consult Suzlon 178 322 700 with an extensive exhibition of all the major players. Siemens 552 507 629 Registration Repower 291 276 353 Register today to benefit from Market development Nordex 242 186 298 the early bird rates! www.ewec2007.info in Germany, Spain and Others 1,591 400 1,237 Exhibition the USA Total 8,343 8,154 11,407 Source: BTM Consult Already over 85% of the exhibition space has been sold. Book your stand today! 3500 MW 3000 Germany 2500 2000 USA 1500 [email protected] Spain +32 2 546 19 80 1000 www.ewec2007.info Supporting Organisations Organiser 500 European Associazione Nazionale Eolica Expo Associazione Global Wind European Academy of Commission Energia del Vento Mediterranean Produttori Energia Energy Council Wind Energy da Fonti Rinnovabili 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sun & Wind Energy 2/2006 161 WIND ENERGY Great prospects: At a global scale, the expansion of wind power is moving fast. The photo shows the Riba- mar wind farm in Portugal. derscores the strong position of the »old continent«. Numerous countries have opened up to the use of wind power and the upswing of wind power in Europe is now supported by many markets. India and China dominate in Asia In Asia things are somewhat different. Although the markets in India and China are growing strongly, the amount of power installed in Japan in 2004 and 2005 sank. Taiwan and South Korea are up-and-coming mar- kets, but whether they will install more than 100 MW of power this year is, as yet, uncertain. For the time being, India and China are dominant. India had already experienced a small boom in the years 1994 to 1997 (with a maximum in 1995 of approx. 400 MW), which was mainly due to the government try- ing to give companies a chance to produce a part of the In the Czech Republic, the electricity they required themselves. This was because first largish projects have Many European countries are playing the reliability of the public electricity supply left much now been implemented. The an important role to be desired, and hindered the production of goods. picture shows the erection of The Indian government boosted the market with gen- the windfarm U Tri Panu. And in Europe the outlook is just as rosy – maybe even erous tax credits, and initially many turbines were im- better, as more and more countries are following Ger- ported from Europe. Slowly, however, a home-grown many’s successful example and are setting fixed feed-in production of wind turbines developed. Then, after tariffs. This is why the annually installed power in Ger- 1997, the market slumped dramatically. The year 2003 many and Spain is at a high level and is growing strong- was the first in which the 400 MW boundary was ex- ly in Portugal and France. In Italy and the UK the regu- ceeded again. Two years later the Indian market was the lations are more complicated, but still effective enough fourth largest in the world. The market leaders in 2005 to drive market development. were Suzlon (54 %) and Vestas RGB (27 %), which has Austria, Ireland and Norway are also interesting mar- recently split from Vestas and operates independent kets. In the Netherlands and Greece the market is cur- now. rently developing somewhat intermittently. But these The Chinese market is much smaller than in India two countries will also play their part in keeping the and will remain smaller for some time. For unlike the sit- boom in Europe stable over the next few years. uation in India, China has not yet succeeded in building Eastern Europe is still waiting to open up. The first up a strong inland production of wind turbines. Al- largish projects have now been implemented in Po- though the Chinese have also set ambitious targets, land and the Czech Republic, and in Croatia too. But they are still mainly dependent on licensed production the frameworks will need to be improved before a sus- and joint ventures. Vestas, GE Energy, Repower, Nordex tained rise in wind power comes about in Eastern Eu- and Acciona are active in China and are strongly ex- rope as well. panding their production capacities. It is still unclear in Among the 17 countries in which over 100 MW was which way the Chinese government wishes to advance installed in 2005 (see table 1), 11 are European. This un- the expansion of wind power: through cooperation 162 Sun & Wind Energy 2/2006 WIND ENERGY with others or on its own. And an already planned feed- an countries, especially in France. Additionally, Repow- in tariff for electricity from wind turbines has been put er is benefiting from a joint venture in Portugal. Both on hold. Foreign experts just recently expressed con- companies are also active in East Asia. Nordex set up its cern about market transparency and the uncertainty of first joint venture in China as early as 1998, and the sec- government policy. ond followed in December 2005. Nordex is currently building a factory in China to produce rotor blades, to More and more manufacturers are be delivered to the wind turbine factory which Nordex profiting from the boom is building together with two regional energy suppliers. Repower Systems AG has recently announced the The growing worldwide market is not just good for the planned setting up of a joint venture in China, which large turbine manufacturers, but also for the small ones.