Global Wind Energy Installed Capacity to Reach 707,570 MW by 2015, According to New Report by Global Industry Analysts, Inc.

San Jose, California (Vocus/PRWEB) January 03, 2011

As global economies grapple with skyrocketing oil imports and burgeoning energy bills, the transition towards a renewable source-based energy economy is a slow, yet inevitable reality. The uncertainty and unrest in the energy sector, rapidly depleting natural resources, together with the political pressures and environmental issues, are shedding light on the rapidly evolving role of clean technologies such as wind power, solar energy, fuel-cell power automobiles, and other bio-based materials. As the investment climate for clean technologies clears, the clean energy market is expected to witness a barrage of investments, with energy companies vying for a stake in clean technologies. Wind and solar power constitute the most widespread cost-competitive solutions for the global energy crisis.

Wind power is poised to gain from the tumult in the energy sector. Although the market is expected to face several competitive and structural challenges, apart from the meltdown in the global economy, wind energy is capable of surviving the uncertainties plaguing the overall energy market. Countries around the world have set a target of meeting 12% of the world's electricity needs from the winds by the year 2020. Strategic developments in the wind industry, vibrant new power project undertakings and upgradation activities, cumulative increment in new capacity installations in the recent past, and the transforming governmental energy plans, offer buoyant market forecasts. Although cost of wind energy has drastically declined over the last few years, a further reduction of 30% to 50% is required if wind energy is to compete on par with conventional energies. Appropriate funding and co-ordination of R&D activities could very well help in achieving a cost reduction of 40%. Rising concerns about dramatic environmental changes, attributed to unabated use of fossil fuels, is another driving force for renewable energy market.

The market is expected to produce over 2000 TWh of electricity, and meet about 20% of global power demand and result in carbon dioxide savings of more than 1,500 million tonnes in 2020. More than 1/3rd of the increased global capacity was driven by growth in China where newly added wind power capacity reached 14 GW in 2009. China has emerged the largest producer of wind power surpassing the US, which was in the leading position until mid-2010. Asian countries constitute the fastest growing regions, particularly China and India, which are characterized by high pollution and rising electricity demand. Lured by attractive growth prospects, several wind energy companies have expanded their presence in these regions. The US, India and China are focused on employing onshore wind, while Northwest Europe as well as the UK focus on developing offshore wind power across the North Sea. Offshore wind farms production is expected to outpace land-based wind turbines production by 2015, as countries across the globe increasingly employ renewable energy produced through offshore wind.

The renewable energy market remained largely unfazed by the global economic slowdown that surfaced during the later half of 2008. Investments and capacity additions in the sector continued to rise during the slowdown period. The biomass and wind sectors witnessed a 15% increase in investment in 2009. The economic slowdown also contributed to a significant reduction in the cost of a number of renewable technologies. The constancy in the level of investment despite the economic slowdown is indicative of long-term growth trend in the market.