Nigeria: Global Wind Power Investment to Hit U.S.$820 Billion

Nov. 22, 2011 - Chika Amanze-Nwachuku - allafrica.com

Cumulative investment in new wind power capacity will cost a total $820 billion between 2011 and 2017 as wind power now accounts for the majority of the world's non-hydropower renewable electricity capacity.

A recently-released report by Pike Research, United States -based market research and consulting firm that provides in-depth analysis of global clean technology markets revealed that by 2017 wind power installations will represent $153 billion global industry, up from $77 billion in 2011.

Over that period, the clean tech market intelligence firm forecasts, cumulative investment in new wind power capacity will reach $820 billion, total wind generation capacity, including both onshore and offshore projects, will increase from 235.8 gigawatts (GW) in 2011 to 562.9 GW.

The report also showed that wind power had reached approximately one-fifth of total electricity generation in some countries as most in the energy industry appreciate it as a mainstream technology that is key not to only reducing carbon emissions, but also meeting rapidly increasing electricity demand around the world.

According to the report, while the global economic recession significantly slowed the pace of new wind power installations in 2010, turbine deployment activity remained strong and overall capacity would continue to rise at a healthy pace.

" Although growth rates of new wind installations will fall short of the industry's boom period, cumulative wind power capacity will grow steadily over the next six years," said senior analyst Peter Asmus.

"Despite the challenging market conditions for the wind energy industry, this is a dynamic time for innovation in the market, as vendors are pushing turbines to sizes never before thought practical or economical", he added.

The study noted that at the highest level, three major regional markets will continue to drive the global wind industry: Asia Pacific, dominated by China and, to a lesser extent, India; Europe, led by Germany and Spain; and North America, led by the United States.

The dynamic growth of new market entrants, showed that the top 10 wind manufacturers supplied 79percent of the wind turbines installed worldwide in 2010 - a significant drop from 88percent only two years before.

"The majority of these new entrants are based in China. At the same time, numerous high-level mergers and acquisitions have resulted in more dynamic, vertically integrated wind turbine manufacturing companies. Increasingly, manufacturers are acquiring wind farm development companies as a strategy for ensuring markets for their turbines", the report added.

Pike Research's report, Global Wind Energy Outlook provided an in-depth analysis of global opportunities in the onshore and offshore wind energy markets, as well as an examination of key challenges facing the industry.

It also examined technology innovations that would influence the future direction of the market and also features detailed profiles of key industry players, including a competitive regional analysis of the three major wind energy markets today across their respective technology, policy, and capital environments.

Market forecasts extend through 2017 and include projections for installed capacity, installation costs, and offshore production revenue, all segmented by onshore, offshore, region, and country.

The company's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors.