U.S. and China in Race to the Top of Global Wind Industry

U.S. and China in Race to the Top of Global Wind Industry

The United States passed Germany to become world #1 in wind power installations, and China’s total capacity doubled for the fourth year in a row. Total worldwide installations in 2008 were more than 27,000 megawatts (MW), dominated by the three main markets in Europe, North America and Asia.

WASHINGTON---Global wind energy capacity grew by 28.8% last year, even higher than the average over the past decade, to reach total global installations of more than 120,800 MW (120.8 GW) at the end of 2008. Over 27,000 MW (27 GW) of new wind power generation capacity came online in 2008, 36% more than in 2007.

“These figures speak for themselves: there is huge and growing global demand for emissions-free wind power, which can be installed quickly, virtually everywhere in the world. Wind energy is the only power generation technology that can deliver the necessary cuts in CO2 in the critical period up to 2020, when greenhouse cases must peak and begin to decline to avoid dangerous climate change,”said Steve Sawyer, Secretary General of GWEC. “The 120 GW of global wind capacity in place at the end of 2008 will produce 260 TWh and save 158 million tons of CO2 every year.”

Wind energy is now an important player in the world’s energy markets. The global wind market for turbine installations in 2008 was worth about 36.5bn EUR or 47.5bn US$.

“Wind power is often the most attractive option for new power generation in both economic terms and in terms of increasing energy security, not to mention the environmental and economic development benefits. Volatile fossil fuel prices and unreliable supply policies from fossil fuel rich countries increase the risk of relying on conventional sources for power production,” said GWEC’s Chairman, Prof. Arthouros Zervos. “The wind industry also creates many new jobs: over 400,000 people are now employed in this industry, and that number will be in the millions in the near future.”

The leading markets in terms of new installed capacity in 2008 were the US and China. New US wind energy installations totalled 8,358 MW for a total installed capacity of 25,170 MW the US has now officially overtaken Germany (23,902 MW) as number one in wind power. Europe and North America are running neck-to-neck, with about 8,900 MW (8.9 GW) each of new installed capacity in 2008, with Asia closely following with 8,600 MW (8.6 GW).

The massive growth in the US wind market in 2008 increased the nation’s total wind power generating capacity by 50%. The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added in the US last year, and created 35,000 new jobs, for a total of 85,000 employed in the sector in the US.

At year’s end, however, financing for new projects and new orders for turbines and components slowed to a trickle as the financial crisis began to hit the wind sector.

“The U.S. wind energy industry turned in a record-shattering performance in 2008, establishing wind as one of the leading sources of new electricity generation in the country and a job creation dynamo,” said AWEA CEO Denise Bode. “At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We look forward to working with President Obama and the new Congress on policies to restore the industry’s vital momentum and achieve President Obama’s goal of doubling renewable energy production in three years.”

The growth in Asia’s markets has also been breathtaking; close to a third of all new capacity in 2008 was installed on the Asian continent. In particular, the wind energy boom is continuing in China, which once again doubled its installed capacity by adding about 6,300 MW (6.3 GW), reaching a total of 12,200 MW (12.2 GW).

“The Chinese wind energy market is going from strength to strength, and has once again doubled in size compared to 2007, reaching over 12 GW of total installed capacity,” said Shi Pengfei, Vice President of the Chinese Wind Energy Association (CWEA). “The outlook for the coming years is also very healthy.”

In its response to the financial crisis, the Chinese government has identified the development of wind energy as one of the key economic growth areas. “In 2009, new installed capacity is expected to nearly double again, which will be one third or more of the world’s total new installed capacity for the year,” said Li Junfeng, Secretary General of the Chinese Renewable Energy Industry Association (CREIA).

At this rate, China would be well on its way to overtake Germany and Spain to reach second place in terms of total wind power capacity in 2010. China would then have met its 2020 target of 30,000 MW (30 GW) ten years ahead of time.

The growing wind power market in China has also encouraged domestic production of wind turbines and components, and the Chinese manufacturing industry is becoming increasingly mature, stretching over the whole supply chain.

“Now, the supply is starting to not only satisfy domestic demand, but also meet international needs, especially for components,” said Li Junfeng. “In 2009, Chinese companies will start to enter the UK and Japanese markets, and orders for 200 blades have already been placed. There are also ambitions for exploring the US market in the coming years.”

In Europe, almost 8,900 MW (8.9.GW) worth of new wind turbines brought total wind power generation capacity up to nearly 66,000 MW (66 GW). This makes wind power the leading power source for new generation capacity, according to the European Wind Energy Association (EWEA). While in the past, European growth was primarily spurred by the established markets in Germany, Spain and Denmark, 2008 saw a much more balanced expansion, led by France, the UK and Italy.

“The European figures show that wind energy is the undisputed number one choice in Europe’s efforts to move towards clean, indigenous renewable power”, said Christian Kjaer, CEO of EWEA. “Wind energy is an example of an intelligent investment that puts EU citizens’ money to work in their own economies rather than transferring it to a handful of fuel-exporting nations”, commented Kjaer. “Investing in wind energy means supporting technology leadership, climate protection, energy independence, commercial opportunities and jobs.”

“We’re on track to meeting our target of saving 1.5 billion tons of CO2 per year by 2020”, concluded Steve Sawyer, “but we need a strong, global signal from governments that they are serious about moving away from fossil fuels and protecting the climate. As positive outcome to the climate negotiations throughout this year, resulting in a new global agreement in Copenhagen in December, is of fundamental importance and will send the kind of signal that the industry, investors and the finance sector need for wind power to reach its full potential.”

See tables and graphs at http://www.gwec.net/fileadmin/documents/PressReleases/PR_stats_annex_table_2nd_feb_final_final.pdf

GWEC is the voice of the global wind energy sector, bringing together the major national, regional and continental associations and leading wind energy companies. With a over 1,500 organisations, GWEC’s member associations represent the entire wind energy community. Visit www.gwec.net for more information.

AWEA is the national trade association of America’s wind industry, with more than 1,800 member companies, including global leaders in wind power and energy development, wind turbine manufacturing, component and service suppliers, and the world’s largest wind power trade show. AWEA is the voice of wind energy in the U.S., promoting renewable energy to power a cleaner, stronger America. More information on wind energy is available at the AWEA Web site: www.awea.org.



Contacts The Rosen GroupLaura Stevens, (202) 862 4372orGWECAngelika Pullen, (32) 473-947-966angelika.pullen@gwec.net






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Wind Energy Grows by Record 8,300 MW in 2008

Wind Energy Grows by Record 8,300 MW in 2008

Smart policies, stimulus bill needed to maintain momentum in 2009

WASHINGTON---The U.S. wind energy industry shattered all previous records in 2008 by installing 8,358 megawatts (MW) of new generating capacity (enough to serve over 2 million homes), the American Wind Energy Association (AWEA) said today, even as it warned of an uncertain outlook for 2009 due to the continuing financial crisis.

The massive growth in 2008 swelled the nation’s total wind power generating capacity by 50% and channeled an investment of some $17 billion into the economy, positioning wind power as one of the leading sources of new power generation in the country today along with natural gas, AWEA added. At year’s end, however, financing for new projects and orders for turbine components slowed to a trickle and layoffs began to hit the wind turbine manufacturing sector.

“Our numbers are both exciting and sobering,” said AWEA CEO Denise Bode. “The U.S. wind energy industry’s performance in 2008 confirms that wind is an economic and job creation dynamo, ready to deliver on the President’s call to double renewable energy production in three years. At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We are already seeing layoffs in the area where wind’s promise is greatest for our economy: the wind power manufacturing sector. Quick action in the stimulus bill is vital to restore the industry’s momentum and create jobs as we help make our country more secure and leave a more stable climate for our children.”

The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added nationally last year, according to initial estimates, and will avoid nearly 44 million tons of carbon emissions, the equivalent of taking over 7 million cars off of the road.

The amount that the industry brought online in the 4th quarter alone - 4112 MW - exceeds annual additions for every year except 2007. In all, wind energy generating capacity in the U.S. now stands at 25,170 MW, producing enough electricity to power the equivalent of close to 7 million households and strengthening our national energy supply with a clean, inexhaustible, homegrown source of energy.

Iowa, with 2,790 MW installed, surpassed California (2,517MW) in wind power generating capacity. The top five states in terms of capacity installed are now:

-Texas, with 7116 MW

-Iowa, with 2790 MW

-California, with 2517 MW

-Minnesota, with 1752 MW

-Washington, with 1375 MW

Oregon moved into the club of states with more than 1,000MW installed, which now counts seven states: Texas, Iowa, California, Minnesota, Washington, Colorado, and Oregon.

About 85,000 people are employed in the wind industry today, up from 50,000 a year ago, 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. About 8,000 of these jobs are construction jobs, and a significant number of those will be lost in 2009 if financing for the pipeline of new projects is not quickly restored.

Wind power’s recent growth has also accelerated job creation in manufacturing, where the share of domestically manufactured wind turbine components has grown from under 30% in 2005 to about 50% in 2008. Wind turbine and turbine component manufacturers announced, added or expanded 70 new facilities in the past two years, including over 55 in 2008 alone. Those new manufacturing facilities created 13,000 new direct jobs in 2008. However, because of the recent slowdown in orders, wind turbine and turbine component manufacturers in different parts of the country are beginning to announce layoffs.

“The hope is that provisions such as those included in the House stimulus bill to restore the effectiveness of the tax incentives for renewable energy will quickly become law and provide the capital needed to continue to build projects,” said Bode. “Because wind projects can be built quickly, positive legislation from Congress will have immediate and visible effects. Looking forward, it will also be important for the new Administration and Congress to put in place long-term, supportive renewable energy policies to make the new clean energy economy a reality.”

State-by-state installation information is available at www.awea.org/projects. For more on the policies that are needed see www.newwindagenda.org. For media/satellite availability on Wednesday, January 28, please contact Shawna Seldon, The Rosen Group, (212) 255-7541 or (cell) (917) 971-7852.

About the American Wind Energy Association (AWEA):

AWEA is the national trade association of America’s wind industry, with more than 1,800 member companies, including global leaders in wind power and energy development, wind turbine manufacturing, component and service suppliers, and the world’s largest wind power trade show. AWEA is the voice of wind energy in the U.S., promoting renewable energy to power a cleaner, stronger America. More information on wind energy is available at the AWEA Web site: www.awea.org.

Contacts AWEAJulie Clendenin, 202-384-3090orShawna Seldon, 212-255-7541




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