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RenewableS 2013 GlObal STaTUS RePORT - REN21

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02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – wINd POwER<br />

decade, reducing transport-related costs and creating jobs. 72<br />

(See Sidebar 4.) In Europe, industry activity focused increasingly<br />

on offshore technologies and project development in<br />

Eastern Europe and other emerging markets. 73 By late 2012,<br />

Brazil was home to 11 manufacturing plants and GE had a facility<br />

under construction, and India had 19 manufacturers with a<br />

consolidated annual production capacity exceeding 9.5 GW. 74<br />

In general, however, the turbine manufacturing industry was<br />

hit hard by rising costs, reductions in government support,<br />

and overcapacity, with several manufacturers delaying or<br />

cancelling expansion plans, scaling back operations, reducing<br />

their workforce, or filing for bankruptcy 75 In the United States,<br />

companies throughout the wind energy supply chain reduced<br />

workforces and closed facilities due to policy uncertainty. 76<br />

Vestas (Denmark) chose to restructure, let go of thousands<br />

of employees, and end production of its kW size machines. 77<br />

Sinovel (China) put workers on leave, and many suppliers in<br />

China in particular have been pushed to the edge of collapse,<br />

with overcapacity pushing smaller manufacturers out of the<br />

market. 78 Suzlon (India) has lost money for three years running<br />

and has struggled with massive debt. 79<br />

At the same time, expansion and innovation continued in 2012.<br />

Local-content requirements (see Policy Landscape section)<br />

have not only spawned trade disputes but also led turbine<br />

manufacturers to build factories close to growing markets for<br />

competitive advantage. 80 Chinese companies are taking package<br />

deals (including government-backed loans) to emerging<br />

markets and are establishing subsidiaries and partnerships<br />

with local companies to deploy their excess capacity. 81<br />

Manufacturers are also assuming more risk to increase their<br />

share of the growing market for turbine maintenance, which is<br />

expected to provide relatively stable margins. 82<br />

Turbine designs continue to evolve in order to reduce costs and/<br />

or improve performance, with trends towards longer blades,<br />

lower wind speeds, and new materials such as concrete for<br />

towers and carbon fibre for blades. 83 At least two companies<br />

launched turbines for low-wind sites in 2012, and GE started<br />

developing blades made of tough, flexible fabric that could<br />

reduce blade costs by 25–40%. 84 There is also a shift forwards<br />

towards automated manufacturing of blades and a shift back to<br />

traditional doubly-fed induction generators and medium-speed<br />

hybrid drives. 85<br />

The trend towards ever-larger turbines continued in 2012, with<br />

the average size delivered to market rising to 1.8 MW (from 1.7<br />

GW in 2011). 86 Average turbine sizes were 3.1 MW in Denmark,<br />

2.4 MW in Germany, 1.9 MW in the United States, 1.6 MW in<br />

China, and 1.2 MW in India. 87 During 2012, the average size<br />

installed offshore in Europe was up 14% over 2011 to 4 MW, and<br />

31 companies announced plans for 38 new offshore turbine<br />

models, with three-quarters of these being 5 MW and up. 88<br />

Most manufacturers are developing turbines in the 4.5–7.5 MW<br />

range, with 7.5 MW being the largest size that is commercially<br />

available, but several companies announced plans in 2012 to<br />

develop even larger machines. 89 Turbines are also rising higher<br />

and being outfitted with longer blades to capture more energy:<br />

REpower erected its tallest turbine to date, with a 143-metre<br />

hub height, and Siemens unveiled the “longest blades in the<br />

world” at 75 metres. 90<br />

In addition to seeing larger turbines, the offshore wind industry<br />

is moving into deeper water, farther from shore, and with<br />

greater total capacities per project, leading to increased<br />

interest in floating platforms. 91 Several countries have pilot<br />

programmes for floating turbines, and Japan launched its first<br />

(100 kW machine) in 2012, with plans to install a full-scale<br />

machine in <strong>2013</strong>. 92 In Europe, the average offshore wind farm<br />

size increased 36% relative to 2011 (to 271 MW). 93 As offshore<br />

projects become larger, there is growing competition for<br />

manufacturing capacity and installation resources, creating<br />

a trend towards vertical integration and consolidation in the<br />

supply chain, including installation vessels, with several project<br />

developers securing vessels and some funding new ones. 94<br />

The small-scale (

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