Renewable Energy and Related Services: Recent Developments

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Renewable Energy and Related Services: Recent Developments ( renewable-energy-and-related-services-recent-developments )

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The global wind energy services market has grown as the value of global wind installations (including goods and services) rose from an estimated $30.1 billion in 2007 to $71.5 billion in 2011.88 Wind services are estimated to have been $23 billion in 2011, or 32 percent of the broader market for installations.89 China and the United States together accounted for over half of the global market for wind development and installations services in 2011 (table 4.4). TABLE 4.4 Top five wind energy development and installation services markets, 2011a Estimated value of Annual installed capacity, Country 2011 (MW) China 17,631 United Statesc 6,810 Germany 2,086 Canada 1,267 Spain 1,050 T otal 40,629 services market (billion $ ) 9.0–11.8 5.5–7.1 2.3–3.5 1.2 0.99 22.7–30.5 Percentage of global services marketb (%) 39–52 24–31 10–15 5 4 100 Source: GWEC, Global Wind 2011 Report, 2012, 12; IEA, IEA Wind 2011 Annual Report, July 2012; IRENA, Renewable Power Generation Costs in 2012: An Overview, 2013, 32. aData were not available for India. bPercentage is calculated based on the lower estimated value of services market ($22.7 billion). cU.S. estimates may differ from those presented earlier due to slight variations in data sources. Estimates in the U.S. market section were calculated using data from AWEA and Wiser and Bolinger; however, for consistency across countries, estimates presented here were calculated using data from GWEC, IEA and IRENA. The value of global O&M services also continued to rise steadily, as the volume of the global installed base of wind capacity has more than doubled over the past five years (figure 4.4), increasing demand for these services. Estimating the size of the global O&M market is more challenging, due to the limited availability of data. However, in 2011 the global O&M market was likely worth at least $7.2 billion.90 Additionally, among the 14 88 2011 is the most recent year for which data are available. Pernick, Wilder, and Winnie, Clean Energy Trends 2012, March 2012, 3. 89 These values are estimated by USITC using publicly available data. The value of the development and installation services market was calculated multiple ways. First, available cost share estimates from Black & Veatch and IRENA were applied to Pernick, Wilder, and Winnie’s estimates of the overall wind energy market. Estimates were also made by calculating and summing the cost of installation for the top 10 markets (by total installed capacity), as well as the rest of the world, then subtracting the estimated turbine cost. Estimated turbine cost is the sum of average wind turbine prices for each of the 10 leading markets multiplied by annual installations (in MW) in those markets plus the global average turbine price multiplied by annual installations (in MW) in the rest of the world. Global or regional averages were applied to countries for which annual turbine prices or installation costs were not available. The resulting estimates of the services markets were not exactly the same, but were comparable. USITC staff calculations using data from Pernick, Wilder, and Winnie, Clean Energy Trends 2012, March 2012, 4; GWEC, Global Wind 2011 Report, 2012, 12; IEA, IEA Wind 2011 Annual Report, July 2012; IRENA, Renewable Power Generation Costs in 2012: An Overview, 2013, 32. 90 Data on O&M costs in 2011 were available for only 14 countries, mostly European, representing 78 percent of the market by installed capacity. Data used for the UK are for full-service O&M contracts, and thus may overestimate the market. The global average (21 percent) was used for countries that did not report average capacity factors. Costs for the rest of the world were calculated using the global average capacity factor and the U.S. O&M cost ($0.01/kWh). O&M costs in the United States are reportedly among the lowest in the world, suggesting that the actual value of the 2011 O&M services market is higher than estimated. BNEF reports that prices for full-service O&M contracts are highest in Eastern Europe; they also tend to be higher than average in emerging markets such as Brazil, Mexico, and South Africa. IRENA, Cost Analysis of Wind Power, June 2012; GWEC, Global Wind 2011 Report, 2012; BNEF, “Operations and Maintenance Price Index,” October 23, 2012. 4-17

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