Despite Rising Costs, Wind Industry Thriving Worldwide

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http://www.renewableaccess.com/rea/news/story?id=49425

The wind industry is undergoing temporary growing pains similar to the silicon shortage experienced by the solar photovoltaic (PV) industry: there are simply not enough materials or manufacturing capacity to keep up with the increasing demand for wind turbines. The need for steel, copper, concrete and other materials has driven up project costs, restricted turbine supplies and created a difficult market for smaller wind developers.

But despite a two-and-a-half year stretch of materials shortages and rising costs, the global wind industry is experiencing steady growth worldwide and increased acceptance by utilities, governments and citizens.

"Between 2004 and 2005, the global wind turbine market experienced a rapid period of escalation...Within the span of just that year the global demand for wind turbine components and supply jumped to a new plateau and a new rate of growth," says Joshua Magee, senior analyst for Emerging Energy Research's (EER) North American Wind Advisory Group.

Much of that new demand was caused by the two-year extension of the production tax credit (PTC) in the U.S., which provided certainty for wind developers and encouraged a slew of new projects. In addition, China and India emerged as major players in the wind market, further straining supply of materials.

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