Energy future2007 record year for wind energy

The global wind energy markets have seen another record year in 2007, with 20 GW of new installations. This figure, which was released by the Global Wind Energy Council (GWEC), is up by 30 percent compared to the new installations in 2006, while the sum of the world’s total installations has increased by 27 percent to reach over 94 GW by the end of 2007. Wind energy has now become an important player in the world’s energy markets. In terms of economic value, the global wind market is estimated to be worth about €25 billion or $36 billion per year in new generating equipment. New developments in 2007 have seen the United States continuing to lead as the biggest annual market with 5.2 GW of new installations, followed by Spain and China, which added 3.5 GW and 3.4 GW to their total capacity respectively.

The North American market experienced the strongest growth with a spectacular 5.2 GW of new installations in the USA alone in 2007, more than double the 2006 figure. The U.S. total wind power generating capacity was expanded by 45 percent in a single calendar year, injecting an investment of over $9 billion or €6 billion into the nation’s economy. The new wind projects account for about 30 percent of the entire new power-producing capacity added nationally in 2007 and will power the equivalent of 1.5 million American households annually. With the total installed capacity in the US now standing at 16.8 GW, it can be expected that the US will overtake Germany as the largest market for wind energy by the end of 2009, provided that growth continues at the current rate.

The growth in Asia’s markets has also been breathtaking, and over a quarter of all new capacity in 2007 was installed on the Asian continent. In China alone, over to 3.4 GW of wind energy capacity was added in 2007, bringing total installed capacity to 6 GW. This represents an increase of 156 percent compared with the wind capacity installed during 2006 and a 134 percent increase of the total installations. The growing wind power market in China has also encouraged domestic production of wind turbines, and we now have more than 40 domestic companies involved in manufacturing. In 2007 domestic products accounted for 56 percent of the annual market, compared to 41 percent in 2006, said Li Junfeng, secretary general of the Chinese Renewable Energy Industry Association. India also continues to see a steady growth and now counts about 8 GW of wind power installations, up from just over 6.2 GW in 2006.

Europe remains the leading market for wind energy with over 57 GW of wind energy at the end of 2007, representing 61 percent of the global total. In 2007, the European wind capacity grew by 8.5 GW, over 17 percent compared to the previous year. The final figures for Europe will be released by the European Wind Energy Association (EWEA) in early February 2008. While the European market is continuing to grow at a healthy rate, the trend shows that the sector is becoming less reliant on a few key markets, with other regions catching up fast. For the first time in 2007, the growth in Europe accounted for less than half of the total new capacity, down from nearly 75 percent in 2004.

After some slow years, the Pacific market experienced new impetus in 2007, especially in New Zealand, where 151 MW were installed in 2007. In Australia, the newly elected Labour government has ratified the Kyoto Protocol and pledged to introduce a 20 percent target for renewable energy by 2020, justifying an optimistic outlook for future wind energy developments.

Wind energy has a considerable impact on avoiding greenhouse gases and combating climate change. The global capacity of 94 GW of wind capacity will save about 122 million tons of CO2 every year, which is equivalent to around 20 large coal fired power stations.