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CHAPTER 4 Wind Energy Services Introduction Overall, the global wind energy services market grew during 2007–12. The United States was second only to China in terms of newly installed wind energy capacity in 2011, followed by Germany, Spain, and India. However, many major markets are facing fluctuating demand for new wind energy installations and for wind development and construction services due to factors such as weak economic conditions and inconsistent government policies.1 At the same time, competition has increased as demand has risen in the operations and maintenance (O&M) services market. Weak turbine sales have led a growing number of firms, particularly original equipment manufacturers (OEMs), to expand their provision of services, while a growing number of wind farm owners are now seeking services to maintain their recently installed turbines. The global wind services market remains fragmented, with limited cross-border trade. Evidence suggests that the majority of trade involves firms in one country establishing a commercial presence abroad. For example, while a wide variety of firms provide wind energy services in the U.S. market, the largest are subsidiaries or affiliates of foreign multinationals. Due in part to their long history in the wind energy sector, European multinationals have the largest presence in the global market. Overview of Wind Energy Services Segments Wind energy services are typically provided in conjunction with the development and operation of utility-scale wind farms.2 The life cycle of a wind farm can be broken down into three distinct stages, with each stage requiring a unique combination of wind services (figure 4.1). Although the bulk of services (by value) are provided during the project development phase, O&M services are provided for the longest time, often up to 20 or more years. Wind energy services and their respective Consumer Products Classification (CPC) codes are presented in table 4.1. 1 Wind energy services are those services involved in the development, construction, and ongoing operation of large, utility-scale power plants, or wind farms. Wind energy entails the capture of the wind’s natural kinetic energy by wind turbines, which then generate electricity. IEA, “Topic: Wind Power,” n.d. (accessed September 13, 2012). 2 Wind energy services may be contracted for installation and maintenance of either small wind energy systems or utility-scale projects. Small wind systems account for only a small share of the wind energy services market and are less service intensive. Utility-scale projects can require hundreds of wind turbines generating hundreds of megawatts (MW) of capacity and are most often owned and operated by either a utility or an independent power provider (IPP), which sells the power it generates to a utility. AWEA, Wind Energy Siting Handbook, February 2008, 2-1. 4-1PDF Image | Renewable Energy and Related Services: Recent Developments
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