RenewableS 2013 GlObal STaTUS RePORT - REN21
RenewableS 2013 GlObal STaTUS RePORT - REN21
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 (