RenewableS 2013 GlObal STaTUS RePORT - REN21

Pacific to add capacity (0.4 GW), bringing its total to nearly
2.6 GW. 38
Worldwide, 13 countries had turbines operating offshore by the
end of 2012, with 1.3 GW added for a total of 5.4 GW. 39 More
than 90% of this capacity was located off northern Europe,
which continued to lead in offshore developments, adding a
record 1.2 GW (up 35% over 2011) for almost 5 GW total in
10 countries. 40 The United Kingdom accounted for 73% of
Europe’s additions, due largely to completion of the first phase
of the London Array (630 MW), the world’s largest offshore wind
farm; the U.K. ended 2012 with more than 2.9 GW offshore,
followed in Europe by Denmark (0.9 GW), Belgium (0.4 GW),
and Germany (0.3 GW). 41 The remaining offshore capacity was
in China (0.4 GW), Japan (25.3 MW), and South Korea (5 MW),
which added 127 MW, 0.1 MW, and 3 MW, respectively. 42
The trend towards increasing size of individual projects
continued, driven mainly by cost considerations. 43 Europe’s
largest onshore wind farm (600 MW) was connected to the grid
in Romania, and the largest U.S. wind farm (845 MW), which
began operating in Oregon, is expected to power 235,000 U.S.
homes. 44
Independent power producers and energy utilities are currently
the most important clients in the market in terms of capacity
installed, but interest in community-owned wind power projects
is rising in Australia, Canada, Japan, the United States, parts
of Europe, and elsewhere. 45 In the U.S. state of Iowa alone, at
least six community projects came on line in 2012, and several
projects were under way in Australia by year’s end. 46 In Japan,
interest has increased considerably since the Fukushima
disaster in March 2011. 47 Community power represents the
mainstream ownership model in Denmark and Germany. 48
The use of small-scale turbines i is also increasing to meet
energy needs both on- and off-grid and is driven by the
development of lower-cost grid-connected inverters; volatile or
rising fossil fuel prices; and government incentives. 49 Off-grid
and mini-grid uses prevail, particularly in China and other developing
countries. 50 Applications are expanding and include rural
electrification, water pumping, telecommunications, defence,
and other remote uses. 51 There are two distinct markets: models
with rated capacity below 10 kW, and those in the 10–500
kW range. 52 In general, the market is evolving towards 50 kW
and larger turbines because they are easier to finance. 53
Worldwide, at least 730,000 small-scale turbines were
operating at the end of 2011, totaling 576 MW (up 27% over
2010). 54 China accounts for 40% of global capacity and the
United States for 35%, followed by the United Kingdom (11%),
Germany (2.6%), Ukraine, Canada, Italy, Poland, and Spain. 55
In 2012, the total capacity of U.S. sales of small-scale turbines
was 18.4 MW. 56 With the exception of China, most interest is
in North America and Europe, with slow progress in emerging
wind markets. 57
Total wind power capacity by the end of 2012 was enough to
meet at least 2.6–3% of global electricity consumption. 58 In the
EU, wind capacity operating at year’s end was enough to cover
7% of the region’s electricity consumption in a normal wind year
(up from 6.3% in 2011). 59 Several countries met higher shares
of their electricity demand with wind, including Denmark (30%
in 2012; up from nearly 26% in 2011), Portugal (20%; up from
18%), Spain (16.3%; up from 15.9%), Ireland (12.7%, up from
12%), and Germany (7.7%; down from 8.1%). 60
Four German states had enough capacity at year’s end to meet
over 49% of their electricity needs with wind, and through the
month of July the state of South Australia generated 26% of its
electricity with wind power. 61 In the United States, wind power
represented 3.5% of total electricity generation (up from 2.9%
in 2011) and met more than 10% of demand in nine states
(five in 2011), with Iowa nearing 25% (up from 19%) and South
Dakota at 24% (up from 22%). 62
■■Wind Power Industry
During 2005–2009, turbine prices increased in response to
growing global demand, rising material costs, and other factors;
since then, however, growing scale and greater efficiency have
combined to improve capacity factors and reduce costs of
turbines as well as operations and maintenance. 63 Oversupply
in global turbine markets has further reduced prices, benefitting
developers by improving the cost-competitiveness of wind
power relative to fossil fuels. However, the industry has been
challenged by downward pressure on prices, combined with
increased competition among turbine manufacturers, competition
with low-cost gas in some markets, and reductions in policy
support driven by economic austerity. 64
Relative to their 2008 peak, turbine prices fell by as much
as 20–25% in western markets and more than 35% in China
before stabilising in 2012. 65 The costs of operating and maintaining
wind farms also dropped significantly due to increased
competition among contractors and improved turbine performance.
66 As a result, onshore wind-generated power is now
cost-competitive with or cheaper than conventional power in
some markets on a per kilowatt-hour basis (including some
locations in Australia, India, and the United States), although
new shale gas in some countries is making it more difficult for
wind (and other renewables) to compete with natural gas. 67
Offshore wind remains at least twice as expensive as onshore. 68
The world’s top 10 turbine manufacturers captured 77% of
the global market and, as in 2011, they hailed from China
(4), Europe (4), India (1), and the United States (1). Vestas
(Denmark), the top manufacturer since 2000, surrendered its
lead to GE Wind (third in 2011), which blew ahead due mainly
to the strong U.S. market. 69 Siemens moved from ninth to third,
followed by Enercon (Germany) and Suzlon Group (India),
both of which moved up one spot relative to 2011. 70 Other top
companies were Gamesa (Spain) and Goldwind, United Power,
Sinovel, and Mingyang (all China); both Goldwind and Gamesa
dropped out of the top five. 71 (See Figure 20.)
In 2012, more than 550 manufacturing facilities were making
wind turbine components in every region of the United States;
despite ongoing policy uncertainty, the share of equipment
produced domestically increased considerably over the past
02
i Small-scale wind systems are generally considered to include turbines that produce enough power for a single home, farm, or small business, and are used
for battery charging, irrigation, small commercial, or industrial applications. The International Electrotechnical Commission sets a limit at 50 kW, and the World
Wind Energy Association and the American Wind Energy Association currently define “small-scale” as less than 100 kW, which is the range also used in the
GSR; however, size can vary according to needs and/or laws of a country or state/province, and there is no globally recognised definition or size limit.
Renewables 2013 Global Status Report 51