Recent industry development and analyses




Record low LCOEs globally

Longer blades, larger turbines, taller towers – the strive for bigger sized wind components has driven down levelised cost of electricity worldwide. In Northern Europe, government support through subsidies is expected to decrease as countries transition to auction-based mechanisms. The low levels make wind energy cost competitive with conventional fuels, exaggerated by the additional costs of environmental controls that fossils have to bare. See how renewables compare in cost effectiveness: http://bit.ly/2q2ufJv 

World’s first subsidy-free projects go to DONG and EnBW

Germany’s first round of offshore wind power auctions has gone to DONG Energy and EnBW, with at least one of them bidding at the lowest rate of 0.00 EUR/kwH. The projects will mark the first in the world to rely solely on market prices rather than subsidy or other government support. MAKE predicts these economies of scale to make for a reduction in cost, resulting in comfortable IRR levels. To gage the expected returns of this development, see MAKE’s full IRR and LCOE analysis based on a case scenario: http://bit.ly/2pKJLci

North American wind power markets head for rollercoaster

The forecast is looking stormy for wind power markets in the US and Canada over the next ten years. After an initial boom period, MAKE expects a slowing up of wind power in the US from 2020 due to ongoing challenges of project installation as well as looming policies by the Trump government. Further up North, growth of wind power will continue in Eastern Canada until 2019 before shifting towards Western States amidst shrinking electricity demand. Get an insight into what this means for North American wind power stakeholders in MAKE’s North America Regional Report: http://bit.ly/2p3KbK2

Western turbine OEMs dominate in this year’s ranking

Vestas has again made it to the top of the list of MAKE’s turbine OEM rankings, setting the record for new capacity globally – only this time with an even greater distance to its competitors. Western turbine OEMs could outdo their Chinese counterparts thanks to their larger geographical footprint. The full overview on turbine OEMs is presented in as many as three new products on MAKE’s website: the Market Share Research Note, the Historical Wind Turbine OEM Database and the Wind Turbine OEM Market Share Forecast: http://bit.ly/2qX2FQL

Upcoming publications:

Latin America Regional Report

MAKE’s 2016 Regional Report for South American wind power markets predicted a slowing up of strong Mexico and Brazil amidst concerns about the prospects of wind at the auctions. Argentina and Colombia on the other hand were looking to be promising markets for new growth. One year onwards, MAKE’s upcoming ten-year Latin America Wind Power Outlook will assess the situation anew, again taking into account key drivers and barriers, such as political risks in the region. http://bit.ly/2r4xgJp

Middle East and Africa Regional Report

After forecasting steady growth for wind power in the Middle East and Africa last year, MAKE’s upcoming regional outlook reports large new capacity additions from 2017 to 2026. This is largely thanks to the immense wind resources and the rapid learning of developers and turbine OEMs in the region, resulting in some of the cheapest bidding prices ever seen globally. On top of this, the long-awaited launch of Saudi Arabia’s tender program will make the country leader in the region by medium term. http://bit.ly/2q4UocE