U.S. way behind in small wind market
March 11, 2015 | By
Barbara Vergetis Lundin
Driven by innovative financing programs and a growing global demand for distributed generation, the overall market for small and medium wind turbines (SMWT) is growing. As a result of feed-in tariff policies in the United Kingdom, the U.K. market boomed over the past 2 years and is the leading market worldwide, according to Navigant Research, followed by China and Italy who remain important markets. The market in the United States, however, has been limited due to a reduction in state-level incentives and competition from solar PV systems that have declined dramatically in price. In the long term, the overall outlook for the small and medium wind market in each country will be determined by whether the industry can reduce costs and survive in the face of declining or disappearing government subsidies, Navigant says. "Growth in small wind power, to date, has been tied to state and federal incentives in the United Kingdom, Italy, and the United States," said Dexter Gauntlett, senior research analyst with Navigant Research. "Now the sector is maturing, with momentum building around the wind lease model, which has enabled strong growth not only in the U.S. solar photovoltaic market, but also among microgrids, islands, and developing countries where incentives are less important." While the U.S. market has a few bright spots, it is generally trying to regain momentum after rebates and other key incentive programs in leading states stalled, decreased, or expired in the past four years, according to Navigant. Navigant predicts revenue from small wind systems in the U.S. to reach $216 million by 2023 -- well behind leading markets such as the U.K., China, and Italy. Worldwide revenue, Navigant says, will grow from $1 billion in 2015 to nearly $2.4 billion in 2023. For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. http://www.fierceenergy.com/story/us-way-behind-small-wind-market/2015-03-11 |