The growth in the US wind energy sector has been extraordinary in just the last five years. During the Large Wind Turbine Manufacturer Forum on May 24 at the American Wind Energy Association's (AWEA) Windpower 2011 conference, executives from some of the US' premier wind power manufacturers discussed current market conditions, policies aiding and hindering wind energy growth in the US, and provided an outlook for the growing sector's future.
Moderated by Adam Umanoff of Chadbourne & Parke LLP, the panel included commentary from Bob Gates, Chief Commercial Officer, Senior Vice President, Commercial Operations, Clipper Windpower, Inc.; David Takash, Vice President of Sales & Marketing, North America, Gamesa; Richard Reno, General Manager of Wind Products, GE Renewable Energy, GE Energy; Michael Revak, Vice President, Technical Sales and Proposals, Siemens; Andy Cukurs, CEO North America, Suzlon Wind Energy Corporation; Scott Gros, CEO North America, Suzlon Wind Energy Corp.
Umanoff began the forum by touching on some of the major strides the wind energy sector has made in the last few years, citing that in 2010 there were 5,115 megawatts (MW) of wind projects in the US added, with $11 billion invested just last year, making the US the number two wind market in the world today. Umanoff said that in the last five years the sector has seen a 30 percent growth rate. And going forward, panelists all agreed that more wind power would be added this year, being bullish on 2011 and even more so in 2012. But beyond that, the outlook is more uncertain.
Reno said that 2013 is a big unknown at this point. Cukurs added that uncertainty doesn't bode well for the wind energy industry, and "2013 could be tough." The main factors that will affect industry expansion in the 2013-2017 period will be electricity demand and government policy according to Reno and Revak. Additionally, Revak cited that what environmental restrictions will be in place by that point are also key.
Government policies and hindrances were of major concern to all six panelists, as well as audience members. President Obama's 2009 American Recovery and Reinvestment Act was praised by panelists as spurring growth, and helping to "un-stall" projects already in the works, although according to Reno, it hasn't generated any new demand. As for what policies would truly help industry growth, Revak said that "stable long-term policy support is needed."
Other issues that are slowing the growth and acceptance of wind energy in the US are the lack of general public knowledge as to where our electricity comes from according to Gates. Gros added that consumers need to be aware of where wind energy stands against the alternatives, for the energy source to gain widespread acceptance.
Regarding the actual manufacturing of wind turbines, which are composed of approximately 70 percent steel, all six panelists said that about 50-60 percent of their companies' turbine components are made in the US, but plans for US-made parts to reach 85-90 percent in the next few years are in the works. But why US-made turbine components are not already at targeted levels of 85-90 percent is due to weakness in the US vendor base said Gates, who noted that the US' industrial capacity to make large forgings and castings is lower than in other countries, and many of those parts, in particular, come from offshore sources. But one of the US' major strengths is its capacity for innovativeness, and ability to create "the next big thing." Umanoff noted that just five years ago, former panelists wouldn't even answer the question-the percentage of US-made parts was much, much lower.
The aptitude for consistent growth and improvement will allow the US to grow its market share in the global wind energy sector and stay ahead of its competitors, particularly China-four out of the 10 biggest wind turbine manufacturers are Chinese. Takash said that "we need to find a way to stay ahead of them." Gros agreed, adding that the US just has to keep competing to "keep them out." Cukurs took a slightly different approach, explaining that China's place in the global wind energy sector isn't bad for the supply chain, and keeps the US striving to improve.
Overall, the future of the wind energy sector in the US is promising, with major expansion predicted this year and the next. And while the status of the industry in 2013 and beyond is cloudy, it's promising nonetheless. Whether or not growth continues on the fast track it's currently on past 2013 or begins to slow, one thing is certain, wind power globally, and in the US especially, is here to stay.