By OGJ editors
HOUSTON, Jan. 24 -- Increasingly favorable regulatory regimes, government support, environmental pressures, and rapidly evolving technology have pushed wind power to the forefront of the renewable energy industry.
Large wind turbines are the first industrialized renewable energy technology to be priced competitively with coal and natural gas-fueled turbines for utility-scale power generation, said Norwalk, Conn.-based Business Communications Co. Inc. (BCC) in a recent report.
"The kicker is that the resource, wind, has no price volatility. Perhaps the most important feature in a new era of economic uncertainty is a quick turnaround for investors. Large wind projects begin delivering returns within a year of financing," BCC said in its report, "Renewable Bulk Power Sources: World Markets for Large Wind Turbines."
Several Gw-scale wind projects are expected to come on line in the next 5 years, the research firm added.
BCC reported that $5.5 billion was invested in new large wind turbines worldwide in 2001. That amount held steady through 2002 as the large wind industry continued apace everywhere but in the US.
"A frantic pace of development will resume in 2003 in the US as backlogged and new projects are brought to completion ahead of the expiration date of the federal production tax credit," BCC said.
Large markets are opening in France, the UK, and Australia, while high-growth markets in the European Union continue to expand and are spreading to eastern Europe and north Africa. The global large wind turbine market is expected to grow at an (average annual growth rate) of 24.3% to $16.3 billion by 2007.
Mw-class turbines and larger are produced in Denmark, Germany, India, Italy, Japan, Spain, and in the US. Factories are being built in Australia, Brazil, Canada, China, France, New Zealand, Scotland, and in the US, BBC said.
The installed world capacity of large wind turbines is estimated at 110.1 Gw in 2007. Even at that level and $100 billion of investment, large wind turbines will account for less than 3% of the world bulk generating capacity, BBC said.
"What may be most significant is that new large wind capacity will account for almost 24% of all new bulk power installed worldwide in 2007," the report added.
Investments in onshore projects range from less than $1 million to greater than $200 million. New projects have been proposed, and some are under way, that will approach the $300 million level, BCC said.
Permit applications have been filed for offshore wind farms that will breach the 1 Gw mark and require investments of over $1.5 billion to implement. The offshore projects are expected to produce power at prices below those of fossil-fueled power plants. Offshore projects are in development in Canada, Europe, and in the US. Such projects are being considered in Australia, China, and Japan, BCC said.
