The North American wind energy industry is lagging in key areas compared to Europe and Asia, but many key industry players are optimistic about the North American market as turbine costs continue to drop dramatically. In 2010, a total of 5,784 MW of wind capacity was installed in North America. The region currently accounts for more than 22% of the world’s total installed wind capacity and is home to the second largest wind market – the United States. As a region, North America fell to third place in cumulative installations in 2009 behind Asia Pacific and Europe. Pike Research expects installations in the region to reach 125 GW by 2017, with offshore installations accounting for fewer than 3% of that total. Pike Research anticipates that 2011 will be another difficult year for the industry in North America, however, we do see tentative signs of recovery.
Pike Research’s analysis indicates that wind energy installation costs in the United States will total more than $125 billion between 2011 and 2017, capturing 15% of the global market during that period. Canada will reach 15 GW of total wind capacity by 217, with more than 400 MW of that amount derived from offshore installations. In Canada, installation costs will total $19.3 billion between 2011 and 2017. In the midst of this market transition, turbine manufacturer market shares are fluid, as well. In 2010, Chinese wind turbine manufacturer Sinovel overtook GE Wind Energy to become the second largest wind turbine supplier worldwide, and came in at less than 1% (350 MW) behind industry leader Vestas.
This Pike Research report provides an in-depth analysis of North American opportunities in the onshore and offshore wind power markets, as well as an examination of key challenges facing the industry. It examines technology innovations that will influence the future direction of the market, and also features detailed profiles of key industry players, including a competitive regional analysis of the major wind energy markets across their respective technology, policy, and capital environments. Market forecasts extend through 2017 and include projections for installed capacity, installation costs, and offshore production revenue, all segmented by onshore, offshore, region, and country.
Key Questions Addressed:
- What is the outlook for onshore and offshore wind installations in North America over the next six years – and what are the key market drivers?
- How did the global financial crisis and recession affect the North American wind energy market relative to other regions?
- How do the technology, policy, and capital environments compare across North America, Asia Pacific, and Europe?
- How will the Chinese turbine manufacturers’ international expansion affect the North American market for wind turbines?
- Has wind energy reached grid parity?
- How much does it cost to install wind turbines in Canada and the United States?
- Who are the leaders in the push to larger wind turbines and where are they being deployed?
- What key barriers and opportunities will shape the North American wind energy market?
- How much capital will be invested in North American wind installations by 2017?
Who needs this report?
- Wind turbine and component manufacturers
- Wind industry service providers
- Economic development agencies
- Business schools
- Think-tanks, non-profits, and industry associations
- Government agencies and regulators
- Investor community
Table of Contents
1. Executive Summary
1.1 North America Wind Energy Market Outlook
1.2 Wind Power Market Forecasts
1.3 Key Trends and Profiles of Wind Turbine Manufacturers and System Designers
2. Market Issues
2.1 Defining the Market & Macro Trends
2.2 Wind Power Growth during the Financial Crisis and Recession
2.2.1 North America
2.3 Wind Power in the Context of All Electricity Sources
2.4 Offshore Wind
2.4.1 Better Power Production Capacity Factors
2.5 Industry Growth Drivers
2.5.1 Comparing Technological Innovation: Europe Leads, North America Gains, China Joins the Race
2.5.1.1 Technological Innovation: Europe (+++)
2.5.1.2 Technological Innovation: North America (++)
2.5.1.3 Technological Innovation: Asia Pacific (+)
2.5.2 Comparing Policy Environments: China Sets Ambitious Path, Europe Adjusts, but Stays on Target, United States Scrambles as States Lead
2.5.2.1 Policy Environment: Asia Pacific (+++)
2.5.2.2 Policy Environment: Europe (++)
2.5.2.3 Policy Environment: North America (+)
2.5.3 Comparing Capital Environments: China Unfazed, Europe Slows, United States Falters
2.5.3.1 Capital Environment: Asia Pacific (+++)
2.5.3.2 Capital Environment: Europe (++)
2.5.3.3 Capital Environment: North America (+)
2.6 Increasing Demand for Energy over the Long Term
2.7 Cost of Conventional Energy Source Trends
2.7.1 North America
2.8 Carbon Emissions Reduction
2.9 Renewable Energy Targets
2.9.1 United States
2.9.2 Canada
2.10 Incentives and Subsidies
2.10.1 United States
2.10.2 Canada
2.11 Job Creation
2.12 Implementation Issues
2.12.1 Grid Integration
2.12.2 United States
2.12.3 Canada
2.12.4 High-Voltage Direct Current
2.13 Overcoming Intermittency and Institutional Barriers
2.14 Land Use Impacts
2.14.1 Less Land Use Impact than Solar
2.15 Permitting Delays
2.16 Is Wind Power Cost Competitive with Fossil Fuels?
2.16.1 Net Installation Cost of Onshore Wind Power
2.16.2 Turbine Costs
2.16.3 Balance of System Costs
2.16.4 Operations and Maintenance Costs
2.16.5 Refurbishment Costs
2.16.6 Net Cost of Offshore Wind Power
2.16.7 Financing
3. Technology Issues
3.1 Wind Turbine Basics
3.1.1 Towers
3.1.2 Nacelles and Interior Components
3.1.3 Gearboxes and Generators
3.1.4 Rotors – Blades and Hub
3.1.5 Wind Turbine Raw Materials
3.1.5.1 Rare Earth Metals
3.1.6 Types
3.1.6.1 Horizontal versus Vertical Axis
3.1.6.2 Upwind versus Downwind
3.1.6.3 Three Blades versus Two Blades
3.2 Efficiency
3.3 Reliability
3.4 Scalability
3.5 Availability
3.6 Technology Trends
3.6.1 Technology Trend: Innovation in Component Design & Reliability
3.6.2 Technology Trend: Direct Drive Gaining versus Traditional Geared Turbine
3.6.3 Technology Trend: Self-Erecting Towers & On-Site Manufacturing
3.6.4 Technology Trend: Increasing Turbine Capacities to Increase Economies of Scale
3.6.5 Technology Trend: Wind Energy Storage
3.6.6 Technology Trend: Wind Forecasting Improvements
4. Key Industry Trends and Company Profiles
4.1 Trends among Turbine Manufacturers, Component Suppliers, and Design Service Providers
4.1.1 Companies’ Global Footprint Cushions Regional Economic Troubles
4.1.2 Chinese Turbine Manufacturers Leap Ahead and Abroad Amid Criticism
4.1.3 Consolidation Leads to More Vertically Integrated Companies
4.2 Key Profiles
4.2.1 Wind Turbine Manufacturers and System Designers
4.2.1.1 ACCIONA Energia
4.2.1.2 Enercon Services Inc.
4.2.1.3 Gamesa
4.2.1.4 GE Wind Energy
4.2.1.5 Mitsubishi Heavy Industries
4.2.1.6 Nordex
4.2.1.7 Suzlon Energy
4.2.1.8 REpower Systems SE
4.2.1.9 Siemens AG
4.2.1.10 Vestas
4.2.1.11 Sinovel Wind Group
4.2.1.12 Goldwind Science & Technology Co. Ltd
4.2.1.13 Dongfang Electric Corporation Limited
4.2.1.14 American Superconductor
4.2.1.15 Clipper Windpower
4.2.1.16 Nordic Windpower
4.2.2 Turbine Component Manufacturers
4.2.2.1 Bosch Rexroth
4.2.2.2 LM Wind Power
5. Market Forecasts
5.1 Global Renewable Energy Generation Trends
5.2 Wind Energy Market Forecasts
5.2.1 North American Market Forecast
5.3 Country Forecasts
5.3.1.1 United States
5.3.1.2 Canada
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
10. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Cumulative Wind Power Generation Capacity by Region, World Markets: 2008-2017
- Annual Wind Power Capacity Additions by Region, World Markets: 2008A-2010A
- Cumulative Installed Wind Capacity by Country, North America: 2008-2017
- New Additions of All Wind Capacity by Country, North America: 2009-2017
- Total Onshore and Offshore Wind Installation Costs, North America: 2011-2017
- Offshore Wind Power Production Revenues by Country, North America: 2011-2017
- Cumulative Wind Power Generation Capacity by Sector, United States: 2008-2017
- Cumulative Wind Power Generation Capacity by Sector, Canada: 2008-2017
- Global Wind Turbine Market by Manufacturer: 2008-2010
- Wind Energy Market Definition
- Cumulative Installed Wind Power Capacity, United States: 2010
- Cumulative Installed Wind Power Capacity, Canada: 2Q 2011
- U.S. Annual Power Capacity Additions by Percentage
- North American Offshore Wind Project Activity: July 2011
- World Net Electricity Generation by Fuel: 2007-2035
- Renewable Portfolio Standards, Goals, United States: 2011
- Summary of Key Policies and Incentives in the United States and Canada
- Current Online Wind-Related Manufacturing Facilities in the United States
- Existing, Committed, and Potential Interconnection Lines between Jurisdictions
- Existing and Planned Wind Farms, Canada: 2010-2017
- Comparisons of Line Losses between AC and DC Transmission Cables
- Land Conversion from Agriculture, Wind vs. Concentrated Solar Energy
- Energy Projects Currently Being “Stalled, Stopped, or Killed”
- Comparing the Price of Wind and Natural Gas, United States: 2003-2009
- NREL Ranking of Overnight Capital Costs for Power Plants
- Cost Elements of Capital Investment in New Wind Projects: Europe
- Comparisons of Operations and Maintenance Costs per MWh of Generation: 2006
- Types of Repairs for Onshore Wind Turbines (2.5 kW to 1.5 MW): 2008
- Cost of Wind Turbine Components: 2009
- Prospective Impact of Innovations in Onshore Wind Turbines on Cost/kWh
- Diagram of a Typical Nacelle
- Evolution of Wind Technology Prototype Designs in the United States
- Cost Rationale for Offshore Wind
- Global Annual Wind Turbine Market Share by Manufacturer: 2008-2010
- Forecasted Energy Use by Fuel Type: 1990-2035
- EIA Forecasts of Net Electricity Generation Fuels: 2007-2035
- Cumulative Installed Capacity by Region and Technology: 2009
List of Tables
- Comparing Technology, Policy, and Capital Environments
- Offshore Wind SWOT Analysis
- Comparing Technology, Policy, and Capital Environments
- Wind as a Percentage of Electricity Generation, Top Countries
- Cumulative Installed Wind Capacity by Country, North America: 2008-2017
- New Additions of Onshore Wind Capacity by Country, North America: 2009-2017
- Cumulative Offshore Wind Installed Capacity by State and Country, North America: 2008-2017
- New Additions of Offshore Wind Capacity by State and Country, North America: 2009-2017
- Growth in Cumulative Installed Wind Capacity by Country, North America: 2008-2017
- New Additions of All Wind Capacity by Country, North America: 2009-2017
- Estimated Onshore Wind Energy Production by Country, North America: 2008-2017
- Offshore Wind Power Production Revenues by State and Country, North America: 2011-2017
- Average Onshore Wind Turbine Price per Kilowatt by Country, North America: 2008-2017
- Annual Onshore Wind Turbine Investments by Country, North America: 2009-2017
- Annual Onshore and Offshore Wind Installation Costs by Country, North America: 2010-2017
- Annual Onshore Wind Installation Costs by Country, North America: 2010-2017
- Annual Offshore Wind Installation Costs by State and Country, North America: 2010-2017
- Global Annual Wind Turbine Market Share by Manufacturer: 2008-2010
- 12 Largest Wind Farms in Operation Today
- Top 15 Largest Wind Turbines, Commercially Available or Under Research and Development: 2011
- Major Wind Turbine Company Merger & Acquisition Activity: 2009-2011