There are a few key factors that could affect the growth of the global wind industry going forward, namely; (1) the proposed China wind power equipment manufacturing industry access standards draft that is expected to pass by year end; (2) proposed FiT reductions in the Spanish wind industry; and (3) developing trends in the US offshore wind industry.

The Chinese Wind Industry’s proposed access standards draft is likely to lead to industry consolidation in the domestic Chinese wind market. This could potentially provide a more profitable market environment for the leading domestic and international manufacturers as the draft will likely influence and stimulate M&A activity and regulate the wind market by clearly defining manufacturing requirements and influencing overall quality of products manufactured by domestic suppliers. 

Proposed FiT reductions in the Spanish wind market are also likely to affect the competitive landscape as domestic players like Acciona and Gamesa will find it challenging to enter new markets. That said, other emerging markets like the Middle East, India, South America etc. are, for the most part, expected to absorb any potential shortfalls in demand in countries like Spain. In the US, the offshore wind opportunity is a strongly debated subject and, although an important trend to monitor, is not likely to influence global markets substantially near term.

With regards to global installations in the wind market and breakdown by geography, the Chinese wind market is currently leading the pack accounting for approximately 39.6% of global installs in 2009; one of the reasons for this being that many wind farms in China are considered installed even though they are not connected to the grid. Approximately 38-40GW were installed globally in 2009 and the industry is expected to grow (low to high 40s GW annually) in 2010 and 2011 despite anticipated changes to policies around the world.

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Tags: chinese wind industry, energy industry, the wind industry, wind energy industry

This entry was posted on Tuesday, July 20th, 2010 at 9:40 am and is filed under Author, Energy, Pallavi Madakasira, Wind. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.