Why First Solar is a Short at $24
October 23, 2012Best investment books of all time – My List of 13 Great Reads
October 23, 2012Slowdown in Wind Power
Wind Power growth has slowed down quite a bit by 10% in the first half of 2012. The major reason for the slowdown is the 30% fall in growth in the world’s biggest wind market of China. Note China has been adding wind turbines at a nosebleed rate in the last few years to become 50% of the global market from zero in 2007. However large wind farms have been unable to get power grid connections as the rapid growth of wind capacity has outpaced the grid capacity. Massive oversupply of wind turbine manufacturing has already led to a global crash in wind energy stocks and bankruptcy of many small producers.
China has become the world’s largest market with 67.7 GW capacities almost 50% greater than the second largest wind country USA. Note USA Wind Energy Industry while growing sharply in the first half, faces a sharp slowdown in the second half due to imminent expiry of the 30% tax credit. India too is facing a decline as central subsidy schemes have stopped and problems in payments from state owned discoms.
Read about the Pros and Cons of Wind Power.
Wind Energy has reached a plateau of sorts as the biggest countries have slowed down in terms of wind installations. Growth is now coming from countries in South America, Africa and SE Asia however the absolute numbers are still quite small to make a global impact.
Also read Top Countries Nuclear Power Capacity and list of Top Countries with Hydropower capacities.
Top 10 Countries Wind Electricity Capacity ( in 2011)
- China 62,733 MW
- United States 46,919 MW
- Germany 29,060 MW
- Spain 21,674 MW.
- India 16,084 MW
- France 6,800 MW
- Italy 6,747 MW
- UK 6,540 MW
- Canada 5,265 MW
- Portugal 4,083 MW.
The two biggest wind power markets in Latin America – Brazil and Mexico – had modest growth rates that were above the global average. Brazil increased its installed capacity from 1.425 GW to 1.543 GW, and Mexico increased its installed capacity from 929 MW to 1.002 GW. Both countries are expected to continue to be the leading markets in the region over the next few years, according to WWEA.
Most of the European markets showed stronger growth in the first half of this year than in the same period of 2011. The top markets in Europe continue to be Germany, with a new capacity of 941 MW.