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New analysis from Frost & Sullivan
about the European Wind Energy
Markets, finds that the market
earned revenue of US$19.18 billion in
2010 and estimates this to reach US$42.48
billion in 2017. The application sectors
covered in this research service are
offshore and onshore wind energy.
“Europe’s wind energy market is
primarily driven by the European Union’s
renewable energy agenda to meet 20% of
its energy needs through renewable
sources by 2020,” notes Frost & Sullivan
Research Analyst Neelam Patil.
“The high growth potential of offshore
wind energy, coupled with the emerging
markets of Central and Eastern Europe
(CEE) are attracting investments in the
European market.”
Wind energy will remain a significant
contributor to the European Union (EU)
member states’ energy portfolio, as they
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ECONOMIC REPORT
Wind market downturn in
recovery says Frost & Sullivan
The European wind energy market is just starting to recover from the economic downturn in
2009, says a new report from Forst & Sullivan. As demand stabilises, steady growth is forecast.
The market is poised for greater consolidation with fewer but stronger participants.
attempt to achieve the EU 2020 target.
Germany, Spain and France continue to
install more wind power facilities and are
planning to exceed their targets and
provide the surplus energy to the other
EU member states. The United Kingdom is
relying heavily on offshore wind
development to achieve the 2020 target.
The scenario was not so promising a year
ago. Lowered demand for wind energy,
due to the economic slowdown and
overcapacity in the market, drove wind
turbine energy prices to their lowest
levels in 2010.
Additionally, escalating price wars
between new entrants from Asia and
European wind turbine manufacturers
forced inefficient players to exit the
market. Offshore wind technology remains
a grey area, with practical aspects like
operating, maintaining and servicing
offshore wind turbines in winter yet to be
N OVEMBER 2011 • WORLDWIDE I NDEPENDENT P OWER
proven. The CEE region is set to emerge
as a low-cost, low-technology market.
This will make it an attractive market for
Asian manufacturers.
“While the western European market is
difficult to enter, the emerging markets of
CEE will be driven more by price than by
technology, thus posing low barriers to
entry,” adds Patil.
“For offshore technology, the timing is
important; although having a track record
is critical. Companies that wait too long
for others to lead and prove the
technology, run the risk of missing out on
growth opportunities.”
In the mature western European market,
companies need to deliver not only the
best technology, but also outstanding
service packages to maintain or acquire
market share. In the emerging CEE
markets, wind turbine manufacturers will
need to be extremely efficient and costcompetitive
to be able to sustain price
wars.
Early movers in the offshore wind segment
will benefit from capturing a significant
market share and building their track
records. In addition, they will gain vital
experience in seeking financing for offshore
wind farms.
“European manufacturers will have to
continue producing technologically superior
wind turbines at competitive prices,”
concludes Patil.
“They can exploit their technology
leadership position to develop advanced
offshore wind turbines with higher
capacities, which will allow them to reap
benefits through market share leadership
and economies of scale.”
WIP
Internet link
www.frost.com