US Demand for Wind Turbines to Approach $19 Billion in 2018
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March 28, 2014 (Investorideas.com renewable energy stocks newswire) US demand for wind turbine systems is forecast to reach $18.9 billion in 2018, a nearly ninefold increase over severely depressed 2013 levels. The market for wind turbines tends to be highly volatile due to its reliance on government incentives. These and other trends are presented in Wind Turbine Systems, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
According to analyst Kyle Peters, "Going forward, the outlook for wind turbine sales is somewhat muddied by the current lack of major federal incentives, as production tax credits were allowed to expire at the end of 2013." Sales are still expected to rebound significantly, as there are other incentives in play including feed-in tariff payments and various grants from the Department of Energy. Growth will continue to be driven by the need to meet state-level renewable portfolio standards.
With the exception of a single small-scale prototype turbine put out to float off the coast of Maine in June 2013, all of the wind turbine systems installed in the US in 2013 were for onshore applications. This is expected to change going forward, as a number of projects are progressing toward the installation stage. These include Cape Wind, off the coast of Massachusetts; Project WindFloat, off the coast of Oregon; and Project Icebreaker, in Lake Erie near Cleveland, Ohio.
The Northeast had the lowest installed wind energy capacity in the US in 2013, due primarily to a lack of available land for installations. However, through 2018 growth is expected to benefit from the installation of the nation's first offshore wind farms. The ongoing trend of constructing wind farms in rural parts of the country and delivering the electricity to population centers in neighboring states will provide further impetus for growth. The construction of larger, more powerful utility-scale wind turbine systems has caused the average price per system to rise dramatically over the past decade, a trend that is expected to continue for the foreseeable future. These larger systems are built to take advantage of stronger, more consistent winds at higher altitudes, so they require taller towers and longer blades. Additionally, because longer blades add a significant amount of weight, there is rising interest in constructing blades from higher value materials, such as carbon fiber, which further boosts value gains.
Wind Turbine Systems (published 03/2014, 285 pages) is available for $5100 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or e-mail firstname.lastname@example.org. Information may also be obtained through www.freedoniagroup.com.
A limited license to use or reprint information from this news release is granted to you provided attribution for the same – including, if possible, the price of the report – is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.
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