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supply chain
Between 2005 and 2009, new wind power project installations grew at an average rate of 39% per year, creating new opportunities throughout the wind energy supply chain. Over these years, domestic content in wind turbines more than doubled to approximately 50 percent in 2009. While the industry currently lacks the long-term policy support needed to guarantee a stable market, the fundamentals of the industry are strong, and the market will continue to offer new opportunities as manufacturers develop domestic supply chains. Wind turbine manufacturers are driven by the market to increase domestic content beyond 50 percent, offering opportunities to suppliers in many market segments.
State of the Market
2009 shattered previous records
The U.S. wind energy industry installed over 10,000 megawatts (MW) in 2009, expanding the nation’s total wind power generating capacity by 39% and injecting an investment of around $20 billion into the economy. New wind energy projects accounted for 39% of the new power-producing capacity of all types added nationally in 2009. Wind power projects installed through the end of 2009 could power the equivalent of more than 9.7 million American homes. This remarkable growth was driven by strong demand, favorable economics, and a period of stable policy support.
At the end of 2009, U.S. wind power capacity was over 35,000 MW - representing around 33,000 turbines - located in 36 states. These wind farms generated 1.8% of U.S. electricity supply in 2009. About 85,000 people are employed in the wind industry today, and hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, legal and marketing services, and more.
The wind power industry is also growing worldwide, driven by the need for new clean, affordable electricity. Over 38 GW (38,000 MW) of wind power was installed worldwide in 2009, led by the U.S. and China, bringing global installed capacity to over 158 GW.
Lower growth in 2010, but still potential for the market
Installations in 2010 are expected to drop below 2009’s record-breaking level. Only 1,239 MW of new wind installations were added in the first half of 2010. Second-quarter 2010 installations were fully 71% below 2009 levels. This drop can be attributed to inconsistent policy support for renewable energy and points to the need for a national Renewable Electricity Standard (RES). An RES would drive a stable market for wind energy and create the conditions necessary to fully ramp up U.S. manufacturing capacity for wind energy.
Because of the immense size of wind generating equipment, many factors impact a wind turbine’s supply chain, such as the worldwide demand for steel and other commodities, availability of equipment large enough to manufacture to wind turbine specifications, transportation requirements and the availability of experienced personnel.
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