Originally published December 14 2005
Wind power market shows evidence of coming change
by Mike Adams, the Health Ranger, NaturalNews Editor
BusinessWeek looks at the latest trends in wind power, as the market, formerly dominated by European companies, now looks primed to explode in North America.
Thanks to a renewed tax credit, in the next few years the U.S. is poised to become a key wind power market, with relative newcomer General Electric (GE) firmly entrenched as the domestic leader.
According to Danish group BTM Consult, which monitors renewable energy, worldwide wind-energy capacity has grown an average of 15.8% annually for the past five years.
This should be the time that Vestas and companies such as Spanish group Gamesa, which have been pillars of the industry's growth in Europe, have been waiting for.
But while they were instrumental to growth in Germany and Spain (the two countries with the highest generating capacity) and Denmark (which is estimated to derive 20% of its electricity from wind farms), the companies' success in larger countries is less assured.
BACK IN THE U.S. BTM partner Per Krogsgaard said GE's leverage in the U.S. and the strong euro have made it difficult for European companies to compete in this country, though a stronger dollar could make them more competitive.
What's more, as the only major American manufacturer, an almost unheard-of advantage, GE has easy access to developers and owners, as well as enormous clout in the power sector.
It's also unlikely that competitors will make a better product; industry observers say the enormous turbines put out by top manufacturers are very similar.
With the installation of 1 MW of capacity typically costing up to $1.5 million, over 10 years the credit can be good for about a third of the installation cost, according to the AWEA.
Gamesa is opening a blade factory in Pennsylvania next year, making a play for at least some piece of the U.S. market.
The Danish concern has production facilities in India and Australia, but the bulk of its factories are concentrated in Europe, its core market.
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