12/02/2005
New Impetus for US Wind Energy Market
WE5, 13 October 2005
The countries with the most wind turbines installed are in Europe. That is true today, but markets are developing outside of Europe at impressive rates of growth. 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) at the end of July this year. The US market, like all the top wind energy markets worldwide, is the subject of the WindEnergy 2006 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 energy industry will be presenting itself with its own national pavilion for the first time in Hamburg. In addition, trade visitors can learn important details of the legal and economic conditions in the target market of North America, in dedicated country forums.
In its 2005 second quarter outlook the American Wind Energy Association (AWEA) predicts a record wind capacity expansion in US history. At least 2,500 MW will be added, raising total installations to over 9,000 MW at the end of the year. With the recent 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 countries with the most wind turbines installed are in Europe. That is true today, but markets are developing outside of Europe at impressive rates of growth. 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) at the end of July this year. The US market, like all the top wind energy markets worldwide, is the subject of the WindEnergy 2006 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 energy industry will be presenting itself with its own national pavilion for the first time in Hamburg. In addition, trade visitors can learn important details of the legal and economic conditions in the target market of North America, in dedicated country forums.
In its 2005 second quarter outlook the American Wind Energy Association (AWEA) predicts a record wind capacity expansion in US history. At least 2,500 MW will be added, raising total installations to over 9,000 MW at the end of the year. With the recent 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.
- Source:
- Hamburg Messe und Congress GmbH Presse- und Öffentlichkeitsarbeit
- Author:
- Gudrun Blickle
- Email:
- gudrun.blickle@hamburg-messe.de
