Wind power industry
Encyclopedia
The wind power industry is involved with the design, manufacture, construction, and maintenance of wind turbines. The modern wind power
industry began in 1979 with the serial production of wind turbines by Danish manufacturers. The industry is currently undergoing a period of rapid globalization and consolidation.
The modern wind power industry began in 1979 with the serial production of wind turbines by Danish manufacturers Kuriant, Vestas
, Nordtank
, and Bonus
. Initially, most of these early turbines were installed in western Denmark. California, USA experienced a wind power boom from 1982 to 1986 when thousands of Danish and American wind turbines were installed in massive arrays. India got involved in wind power in the mid-1980s as well, while Germany and Spain gradually developed domestic wind power industries starting in the early 1990s.
The wind power industry is currently undergoing a period of rapid globalization and consolidation, with much of the recent wind farm development occurring outside the older established markets. Several large companies with market capitalizations greater than the entire wind power industry itself (General Electric
, Siemens
, BP
) are now making large investments in wind power. To meet a global wind turbine supply shortage, start-up wind turbine manufacturers are still appearing and ramping up the production of their new wind turbine models as quickly as possible.
Wind farm developers develop and sometimes own and operate wind farms. This involves purchasing or leasing land, installing meteorological equipment to quantify the wind resource, and securing transmission, power sales, turbine supply, construction, and financing agreements. Some small wind farm developers, lacking the "muscle" and financing necessary to secure major turbine supply contracts, will develop a project in order to "flip" it and sell to larger developers such as wind power managing owners
.
Wind farm construction companies construct and sometimes assist with the operation and maintenance of wind farms.
Wind farm finance companies sell loans and other financial products to wind farm developers and wind turbine manufacturers. Most of these companies are large banks with experience in providing financing to other large industrial projects.
Wind power consulting companies offer consulting services to the wind power industry, including wind turbine design and certification, technical Due Diligence (or acting as the "Owner's Engineer"), wind resource maps, wind resource assessments
, wind power forecasting, and wind turbine power performance testing. Most of these companies maintain financial independence (no ownership stake) from wind farm projects in order to guarantee unbiased service to their clients.
Wind power research organizations provide research and development to the wind power industry. They are usually part of government agencies or universities and conduct research on aspects of wind power that are currently cost-prohibitive for the private industry to invest in.
Wind power managing owners
are responsible for the operation and maintenance and administration of wind farms which they develop or acquire. All or part of these responsibilities may be subcontracted to third parties. Wind power managing owners, along with other financing parties and equity partners, typically sell the electricity generated from wind farms to public utilities under long-term Power Purchase Agreement
s (PPAs) where they receive a fixed price for the electricity.
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
industry began in 1979 with the serial production of wind turbines by Danish manufacturers. The industry is currently undergoing a period of rapid globalization and consolidation.
Overview
The wind power industry is the industry involved with the design, manufacture, construction, and maintenance of wind turbines. Although the wind power industry is small compared to those of the conventional power generation technologies (hydro, coal, natural gas, and nuclear), it is growing at a much faster rate (25% per year, from 2002 to 2007).The modern wind power industry began in 1979 with the serial production of wind turbines by Danish manufacturers Kuriant, Vestas
Vestas
Vestas Wind Systems A/S is a Danish manufacturer, seller, installer, and servicer of wind turbines. It is the largest in the world, but due to very rapid growth of its competitors, its market share decreased from 28% in 2007 to 12.5% in 2009...
, Nordtank
NEG Micon
NEG Micon is a former Danish wind turbine manufacturer. It was formed in 1997 as a result of a merger between Nordtank Energy Group and Micon....
, and Bonus
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
. Initially, most of these early turbines were installed in western Denmark. California, USA experienced a wind power boom from 1982 to 1986 when thousands of Danish and American wind turbines were installed in massive arrays. India got involved in wind power in the mid-1980s as well, while Germany and Spain gradually developed domestic wind power industries starting in the early 1990s.
The wind power industry is currently undergoing a period of rapid globalization and consolidation, with much of the recent wind farm development occurring outside the older established markets. Several large companies with market capitalizations greater than the entire wind power industry itself (General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
, Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
) are now making large investments in wind power. To meet a global wind turbine supply shortage, start-up wind turbine manufacturers are still appearing and ramping up the production of their new wind turbine models as quickly as possible.
Wind power companies
Wind turbine manufacturers design, test, manufacture, and assist with the operation and maintenance of wind turbines. Important choices facing them include turbine design (generator type, gearbox vs. gear-less, materials) and how much control to maintain over component supplies (internal vs. external). They must be concerned with maintaining their extensive fleets of operating turbines while at the same time developing newer and ever-larger models. The largest wind turbine manufacturers are based in Denmark, Germany, Spain, India, and USA.Wind farm developers develop and sometimes own and operate wind farms. This involves purchasing or leasing land, installing meteorological equipment to quantify the wind resource, and securing transmission, power sales, turbine supply, construction, and financing agreements. Some small wind farm developers, lacking the "muscle" and financing necessary to secure major turbine supply contracts, will develop a project in order to "flip" it and sell to larger developers such as wind power managing owners
Wind power managing owners
Wind farm management covers the operation and maintenance and administration of wind farms.-Wind power managing owners:Over the past few years the global trend is toward public utilities and large Independent Power Producers developing and owning large scale wind farms...
.
Wind farm construction companies construct and sometimes assist with the operation and maintenance of wind farms.
Wind farm finance companies sell loans and other financial products to wind farm developers and wind turbine manufacturers. Most of these companies are large banks with experience in providing financing to other large industrial projects.
Wind power consulting companies offer consulting services to the wind power industry, including wind turbine design and certification, technical Due Diligence (or acting as the "Owner's Engineer"), wind resource maps, wind resource assessments
Wind resource assessment
Wind resource assessment is the process by which wind power developers estimate the future energy production of a wind farm. Accurate wind resource assessments are crucial to the successful development of wind farms.- History :...
, wind power forecasting, and wind turbine power performance testing. Most of these companies maintain financial independence (no ownership stake) from wind farm projects in order to guarantee unbiased service to their clients.
Wind power research organizations provide research and development to the wind power industry. They are usually part of government agencies or universities and conduct research on aspects of wind power that are currently cost-prohibitive for the private industry to invest in.
Wind power managing owners
Wind power managing owners
Wind farm management covers the operation and maintenance and administration of wind farms.-Wind power managing owners:Over the past few years the global trend is toward public utilities and large Independent Power Producers developing and owning large scale wind farms...
are responsible for the operation and maintenance and administration of wind farms which they develop or acquire. All or part of these responsibilities may be subcontracted to third parties. Wind power managing owners, along with other financing parties and equity partners, typically sell the electricity generated from wind farms to public utilities under long-term Power Purchase Agreement
Power Purchase Agreement
Power Purchase Agreements are contracts between two parties, one who generates electricity for the purpose of sale and one who is looking to purchase electricity . There are various forms of Power Purchase Agreements; these are differentiated by the source of energy harnessed...
s (PPAs) where they receive a fixed price for the electricity.