Are Turbine Shortages Having an Effect on the Renuable Energy Targets

June 9, 2008 - PRLog -- A year ago it might have taken 6 months for you to acquire a turbine but explosive growth within the wind market has resulted in this being increased to a staggering 24 – 26 months!

It is fair to say that demand has continually outstripped all projection and Vivek Kher a spokeswomen for Suzlon has highlighted that although investment within the supply chain is likely to bear fruit within a couple of years it does not necessarily equate to supply remaining in step with demand –where will it end? What are the solutions?

US, Europe and China are estimated at spending $150 billion on wind projects in the next five years, but what is driving this demand? The US fears the end of the Production Tax Credit, the EU is striving towards an ambitious 2020 targets and China is fast gathering momentum aiming to increase capacity by 94400 MW by 2010.

The Global Wind Energy council pre-empts that by 2009 China will be the top wind manufacture, supporting more developed nations to meet their own targets. Considering it requires 8,000 parts to make a wind turbine, turbine components are creating the most problematic bottlenecks, leaving many of the big players frantically entering a spending spree to boost suppliers with investments in new plants, signing long term contracts and acquisitions. To give you an idea about the magnitude of the investment, Vestas the market leaders have invested $2.25 billion in the last three years.

So how will this affect the turbine market? Vestas are proudly market leaders at present but it is becoming increasingly evident that Suzlon is an interesting company to watch. Suzlon has replicated Gamesa’s strategy by becoming the second vertically integrated wind power manufacture in the world providing the company with added control over its suppliers. Considering the relatively short time that this company has been visible in the market place their portfolio of acquisitions is impressive allowing global subsidiaries to be tapped into, vast experienced has been gained and of course a cheap labour force is widely available in within India.

Asset managers are facing difficult time. Admittedly the wind industry has never been so profitable yet this constant increase in demand is making it incredibly difficult to ensure projects are delivered on time, within budget and can be kept up to standard with an effective operations and maintenance strategy. At present the turbine manufacturers are the real winners but perhaps the more exciting and profitable venture which offers true longevity is operations and maintenance.

Find how more how to address O&M, supply chain bottlenecks and address the skills shortages at The Wind Energy Operation and Maintenance Summit, 11th – 12th November, London. Sign up for our free Wind Energy Update newsletter today, your independent wind energy news provider.

Website: www.tidaltoday.com/tidal07/