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Access Group International


About Wind Energy

 

Continental Distribution

In terms of continental distribution, a continuous diversification process can be watched as well: In general, the focus of the wind sector moves away from Europe to Asia and North America. Europe decreased its share in total installed capacity from 65.5 % in 2006 to 61 % in the year 2007 further down to 54.6 % in 2008.

Only four years ago Europe dominated the world market with 70.7 % of the new capacity. In 2008 the continent lost this position and, for the first time, Europe (32.8 %), North America (32.6 %) and Asia (31.5 %) account for almost similar shares in new capacity. However, Europe is still the strongest continent while North America and Asia are increasing rapidly their shares.

The countries in Latin America and Africa counted for respectively only 0.6 % and 0.5 % of the total capacity and fell back in terms of new installations down to respectively only 0.4 % and 0.3 % of the additional capacity installed worldwide in the year 2008.

 

Africa

In spite of the huge potentials all over the continent, with world’s best sites in the North and South of the continent, wind energy plays still a marginal role on the continent with 563 MW of total capacity .

Several major wind farms can be found in some of the North African countries like Morocco, Egypt or Tunisia. In the year 2009 and 2010, substantial increases can be expected from projects which are already in the development stage. However, so far, the emergence of domestic wind industry in African countries is only in a very early stage and donor organisations should put a special focus on the creation of markets which enable industries to emerge. However, it is interesting to see that companies from the region are showing an increasing interest and have started investing in the wind sector.

In Sub-Saharan Africa, the installation of the first wind farm in South Africa operated by an Independent Power Producer can be seen as a major breakthrough. The South African government prepares the introduction of a feed-in tariff which would create a real market, enable independent operators to invest and thus play a key role in tackling the country’s power crisis.

In the mid-term, small, decentralised and stand-alone wind energy systems, in combination with other renewable energies, will be key technologies in rural electrification of huge parts of so far unserved areas of Africa. This process has only started at very few places and the main limiting factor is lack of access to know-how as well as financial resources.

 

Asia

Asia – with the two leading wind countries China and India and 24’439 MW of installed capacity – is in a position of becoming the worldwide locomotive for the wind industry. China has again doubled its installations and Chinese domestic wind turbine manufacturers have started for the first time to export their products. It can be expected that in the foreseeable future Chinese and Indian wind turbine manufacturers will be among the international top suppliers.

The Indian market has shown robust and stable growth in the year 2008. It has already a well-established wind industry which already plays a significant and increasing role on the world markets.

Further countries like South Korea (already with 45 % growth rate in 2008) start investing on a larger scale in wind energy and it can be observed that more and more companies are developing wind turbines and installing first prototypes. In parallel with the market growth in the country, it can be expected that also new manufacturers will be able to establish themselves. The World Wind Energy Conference held on Jeju island in June 2009 is expected to push the development in the region. Pakistan installed its first wind farm in the year 2008 and the Government of the country aims at further wind farms in the near future.

 

Australia and Oceania

The region showed encouraging growth rates, reaching 1,819 MW by the end of 2008, most of it thanks to Australia. Commitments made by the Australian government to increase their efforts in climate change mitigation and expansion of renewable energies create the expectation that the Australian wind energy market will show further robust growth also in the coming years. New Zealand, after a change in government, may, however, face major delay in its switch to renewable energy.

 

Europe

Europe lost its dominating role as new market but kept its leading position in terms of total installation with 66’160 MW. Germany and Spain maintained as leading markets, both showing stable growth. The most dynamic European markets were Ireland (adding 440 MW, 55 % growth) and Poland (196 MW added,71% growth), the first Eastern European country with a substantial wind deployment. All in all, the European wind sector showed almost stagnation with a very small increase in added capacity from 8’607 MW to 8’928 MW.

The biggest market Germany is expected, after the amendment of the renewable energy law EEG, to show bigger market growth in 2009. An encouraging change happened in the UK where the government announced the introduction of a feed-in tariff for community based renewable energy projects. However, the cap of 5 MW represents a major hurdle so that the UK wind market will still grow at moderate rates. However, without additional incentives for wind power in more EU member states, such as improved feed-in legislation, the European Union may not be able to achieve its 2020 targets for renewable energy.

 

Latin America

Many Latin American markets still showed stagnation in the year 2008 and the overall installed capacity (667 MW) in the region accounts for only 0,5 % of the global capacity. Only Brazil and Uruguay installed major wind farms in the year 2008. This slow wind deployment is especially dangerous for the economic and social prospects of the region as in many countries people are already suffering from power shortages and sometimes do not have access to modern energy services at all. However, in some countries like Argentina, Brazil, Chile, Costa Rica or Mexico many projects are under construction thus putting lights in the forecast for 2009.

 

North America

North America showed very strong growth in the year 2008, more than doubling its capacity since 2006 to 27,539 MW. Breaking two world records, the USA became the new number one worldwide in terms of added as well as in terms of total capacity. More and more US states are establishing favourable legal frameworks for wind energy and try to attract investors in manufacturing facilities. It can be expected that the new Obama administration will improve substantially the political frameworks for wind power in the country, especially for those type of investors that have practically been excluded from the production tax credit scheme, like farmers, smaller companies or community based projects. The credit crunch, however, may lead to delays in project development in the short term.

The Canadian government has rather been hesitating. However, among the Canadian provinces Quebec and Ontario are showing increasing commitment towards an accelerated employment of wind energy. During and after the World Wind Energy Conference Community Power held in Kingston/Ontario in June 2008, the Government of Ontario showed strong commitment to rapid expansion of renewable energy and is expected to present soon a proposal for a Green Energy Act, including feed-in tariffs for the different renewable energies including wind. In Quebec, contracts for new projects were signed for a total of 2,000 MW, the first to be operational by 2011.

Source WWEA; February12, 2009