US wind industry has its first national pavilion at WindEnergy Boom is a challenge for the industry worldwide

The countries with the most wind turbines installed are in Europe. That is true today, but markets are developing rapidly outside of Europe, too. Turbine manufacturers, equipment suppliers and project developers are currently directing a great deal of attention at the United States, following extension of the PTC regulations (Production Tax Credit) last year. The US market, like all the top wind energy markets worldwide, is a subject at the WindEnergy - International Trade Fair in Hamburg (from 16 to 19 May 2006). That is ensured not least by the participation of AWEA (American Wind Energy Association) as a partner. The US wind industry will be presenting itself with its own national pavilion for the first time in Hamburg. There will be further important details on the legal and commercial conditions in the target market of North America at one of the national presentations made by the AWEA. Kathleen A. McGinty, Secretary of Pennsylvania's Department of Environmental Protection, will be a speaker at the Opening Ceremony of the WindEnergy in Hamburg on 16 May - Pennsylvania is to become a model state for renewable energies.

In its 2005 second quarter outlook the American Wind Energy Association (AWEA) predicts a record wind capacity expansion in US history. Early 2006 the balance was 2400 MW of newly installed wind capacity in the US, raising total installations to 9100 MW for the last year. With the signing of the Energy Policy Act of 2005 - which includes a two-year extension of the wind energy PTC - AWEA anticipates that the strong growth momentum will continue through 2006 and 2007. The two-year extension of the PTC is widely welcomed as a positive signal promoting market growth and stability. A strong contrast with the past is that Congress previously allowed the PTC to expire three times before renewal. Each elongated period without a functioning PTC resulted in market collapse and uncertainty about the US industry's future.

US based Emerging Energy Research predicts for 2008 and 2009 a continued buoyant market growth with annual installations in excess of 3500 MW. Some market sources are more cautious in their US market outlook especially for the next two years. They point at the unfavourable PTC dictated Stop & Go market development situation that has already resulted in an acute turbine and component shortage, a situation that is likely to continue through 2007. Key examples of components short of supply are forged steel main shafts, special bearings and gearboxes. Czech based Skoda Steel is one of the world's largest main shaft suppliers. It indicates that production capacity has been strained to its limits already, but that demand can still not be met.

The largest wind turbine manufacturers to benefit from the dynamism of the US market include US-based GE Energy and Gamesa from Spain; both of these companies are exhibitors and members of the Advisory Board of the WindEnergy. Market leader GE intends to install in 2006 and 2007 a total of about 4700 turbines worldwide, and a large number of those will originate from facilities in Germany and Spain. The US will remain its most important wind market as in 2005, and the proven 1.5 MW turbine the company's single most important workhorse product. Siemens Wind Power (ex-Bonus) received a first order in mid-September from huge developer FPL Energy to supply 600 MW of its 2.3 MW wind turbine type. 'This agreement with FPL Energy is important because it is the first wind power contract for our growing wind power business in the Americas region since Siemens acquired Bonus Energy,' said Randy Zwirn, president and CEO of Siemens Power Generation Inc., in a company press release. Gamesa has ambitious plans to install 14,000 MW of new wind capacity in the period 2005/9 and announced earlier this year plans for establishing a rotor blade manufacturing plant in Pennsylvania. Additional plans include a US headquarters and East Coast development offices in the same state.

But to benefit from the upswing in wind energy, external competitors have to cope with some specifics of the US market. Nordex of Germany intends to re-enter the US market rapidly with the latest 2.5 MW variable speed N90 turbine series. However, before it can supply turbines in the US Nordex will have to adapt the technology in order not to violate a 'variable speed patent' held by General Electric. There are new competitors from the US too, seeing great opportunities in the development of the market. A new market entrant is US-based Clipper Windpower, Inc., which on September 23 opened its wind turbine manufacturing plant in Iowa. Component suppliers and project developers are naturally also eager to take a share of the US market. Blade supplier LM Glasfiber of Denmark completed a major expansion of its blade factory in North Dakota during Q1 2005. Among several large European wind developers active in the US is Airtricity of Ireland. The company plans a US$270 million expansion into the US market during the next years.

Increasing the share of wind capacity in the network implies the need for increased grid quality, and the demand that wind turbines remain grid connected in case of grid failure. This is a trend similar to new regulations in major European wind nations like Germany. Grid expansion is important to cope with the extensive plans for offshore wind farms, too. Finally the Department Of Energy (DOE) estimates that more than 900,000 MW of wind generation capacity, roughly equivalent to the total current installed US electrical capacity, exists within 80 km (50 miles) off the US coasts. This perspective for the future also shows the big potential for the whole of the wind industry.