From Beijing to Dallas, 2008 was a Great Year for the Wind Power Industry Worldwide. Large wind farm installations, larger megawatt-rated turbines and increased numbers of wind farms became commonplace.

Wind plants are increasing in physical size, complexity and the amount of power they produce. Manufacturers are scrambling to add production capacity, introduce improvements and find sub-suppliers for component parts. Utilities are wrestling with queues, transmission capacities and system improvements to connect power producers to their grids. Regulators and government officials are struggling with incentives, tax credits and environmental laws while trying to deal with the latest economic crisis.

Globally, the demand for energy has never been so great, and the present infrastructure is grappling to keep up with the demand. Fossil-fuel pricing is volatile and the byproducts are an environmental concern. Indications are that oil production will peak in the next 10 to 20 years. Coal is abundant but not considered environmentally friendly.

Much of the industry is very uncomfortable with these trends. Our industry is noted for being set in its ways, slow to move and resistant to change. “As the saying goes, ‘The Stone Age didn't end because we ran out of stones,’” said Charles Smith, executive director of the Utility Wind Integration Group (Reston, Virginia, U.S.). “Energy technology is in a transition period, and we need to move on.”

The last time society had a change of this magnitude was the transition from agricultural to industrialization, and it was called a revolution not an evolution. Whether we agree or not, we are redefining the ways in which we produce, distribute and use energy. Smith's pun is appropriate in this case: “The winds of change are blowing.”

LOOK AT THE FACTS

When it comes to wind generation, the facts speak volumes. Wind generation accounted for 40% of all new power-generation installations in Europe for 2007. Wind generation represented 35% of new generation facilities in the United States for the same year.

And at the 2008 European Wind Energy Conference held in Brussels, the industry celebrated a major milestone: The worldwide installation of wind turbines surpassed the 100-GW mark. The 100-GW figure represents approximately 1% of the total global consumption of electricity that can be supplied wind generation.

More remarkable is the fact that from the oil crisis in the 1970s through 1999, the world installed 10 GW of wind-generation capacity. Now, in less than 10 years, we are surpassing 100 GW of installed capacity. The Global Wind Energy Counsel estimates that if the present construction rate continues, the total global installed wind-generation capacity should reach 240 GW by 2012, a 155% increase.

GOVERNMENT POLICIES KEY TO DEPLOYMENT OF WIND

Long-term, stable energy policies have encouraged wind generation in Europe, with Spain installing 3522 MW in 2007. Spain now has 15,145 MW installed capacity, supplying roughly 10% of the nation's electricity. Spain is second only to Denmark in production of electricity by wind. Germany is still the world leader in total installed wind capacity with 22,247 MW but is slowing down as the feed-in tariff for wind decreases.

The United States has been experiencing a boom-bust cycle for wind development since the government allowed the production tax credits (PTCs) to expire three times in the past 10 years and has not developed a long-term policy toward PTCs.

Presently, the United States is in the boom portion of the cycle. The October 2008 economic stimulus package included a one-year extension to the PTC for wind projects, which helped. The House of Representatives' US$825 billion fiscal-recovery package included $54 billion in incentives for renewable energy and energy efficiency, but the global economic downturn will take its toll without long-term refundable tax credits.

Long-term national commitments are essential for manufacturers to take the risks to invest. American Wind Energy Association's (AWEA) “Year-End Wrap Up for 2008” reported that the United States passed the 20,000-MW capacity milestone during the summer of 2008. AWEA points out that it had taken about two decades to reach 10,000 MW (2006) and only two years to double that number.

By September, AWEA reported the United States had more than 21,000 MW of wind capacity “up and running.” The association felt that with additional projects coming on-line every week, another recording-shattering year was in the making.

The United States is now the world's largest single market for wind-generation equipment, but its on-again/off-again tax credits and the lack of a national renewable portfolio standard have hampered manufacturers' decisions on commitments to building new manufacturing facilities in the country.

MANUFACTURES ARE A CRITICAL LINK

AWEA reported more than 50 new, expanded or announced wind-related manufacturing facilities were listed in the United States for 2008. The global economic downturn will certainly impact some announcements, but on the positive side, an environmentally friendly president is going to help. Only time will tell, but the Department of Energy's “20% Wind Energy by 2030: Increasing Wind Energy's Contribution to U.S. Electricity Supply” report identified manufacturing capacity as one of the major challenges to increasing the amount of electricity from wind. Currently, the demands of developers are straining manufacturing production capacity. However, manufacturers are willing to position themselves to support the growing demand for wind generation, if they can expect policy support on a national level.

• Vestas Wind Systems (Denmark) announced plans to expand its presence in the United States with a new headquarters for Vestas Americas planned in Portland, Oregon. Vestas is also planning to open research centers in Houston, Texas, and Boston, Massachusetts; blade factories in Brighton and Windsor, Colorado; and a nacelle assembly factory in Brighton, Colorado.

• Clipper Windpower (United States) expects to be able to produce about 400 turbines in its Cedar Rapids, Iowa, factory after expanding its capacity and hiring new employees.

• Gamesa (Spain) expanded its U.S. operations a few years ago with a blade factory in Ebensburg, Pennsylvania, and three factories in Bucks County, Pennsylvania, to make towers, nacelles and blades.

• Fuhrlander AG (Germany) plans to locate a turbine plant in Butte, Montana.

• Nordic Windpower Ltd. (Sweden) has selected Pocatello, Idaho, for its new manufacturing plant.

• Siemens Energy has announced plans to expand its blade factory in Fort Madison, Iowa. It is also building a factory in Elgin, Illinois, to manufacture turbine gear drives. In addition to the factories, Siemens is planning to open its first U.S. wind turbine R&D facility in Boulder, Colorado. As part of the facility, Siemens will collaborate with the National Renewable Energy Lab and install a 2.3-MW wind turbine at the National Wind Technology Center.

• Suzlong Wind Energy (India), the largest wind turbine manufacturer in Asia, has entered the U.S. marketplace. It opened a blade factory in Pipestone, Minnesota, a few years ago.

• Nordex announced it would be investing around $100 million over the next few years to build its own manufacturing facility in Jonesboro, Arkansas. It expects to begin U.S. production of its 2.5-MW N80/90 turbine in 2009.

• At the WindPower 2008 conference and exhibition held in Houston, Texas, GE Energy announced its fleet of 1.5-MW turbines surpassed 115 million hours of operation in commercial service worldwide. “This milestone has been achieved by more than 8500 GE 1.5-MW wind turbines around the world, including more than 5200 in the United States,” said Victor Abate, GE's vice president of renewable.