Developing the Value Chain of Wind Turbines and Equipment

Exploring Wind Energy: Clean, Simple, Sustainable

Wind energy, a powerful ally in our move towards cleaner power, comes in two main types: onshore and offshore wind. Onshore wind farms, with those familiar turbines, convert the wind’s power into electricity. Smaller setups, known as micro-winds, are perfect for remote places. Offshore wind, placed in the ocean, taps into strong and steady offshore winds, offering even more reliable energy.

Wind energy isn’t just about generating electricity. Wind turbines, those tall structures with spinning blades, act like nature’s generators. They can pump water for farms and even help produce renewable hydrogen for eco-friendly fuels. How does it work? Well, the wind turns the blades, which spin a generator to make electricity. It’s then converted and sent to power our homes and industries.

Wind Turbine Manufacturing and Sourcing

Making wind turbines is like assembling a big clean energy puzzle. First, we gather strong materials like steel and fiberglass. Then, we shape them into essential parts like blades, towers, and generators. These parts come together to create big pieces called subsystems, think of them like building blocks such as the rotor and drivetrain. Finally, we put everything together into complete wind turbines and carefully take them to where they’ll generate clean energy.

Transportation of Wind Turbines

Wind turbines, given their significant size and weight, require specialized transportation methods. In onshore wind projects, these turbines are commonly transported by road on trailers. The blades, often exceeding 100 meters in length, are mounted on specialized trailers allowing rotation and elevation during transportation. Once on-site, the blades are temporarily stored until installation. Towers and nacelles are transported separately, with the tower typically delivered in sections that are assembled at the installation site. The nacelle, housing the generator and other components, is transported as a single unit.

Installation of Wind Turbines

Wind turbine installation involves a systematic process using large cranes to lift and assemble tower sections, nacelles, and blades. Onshore installations typically start with the tower, followed by the nacelle and blades. Offshore installations, employing specialized vessels like jack-up vessels, lift and assemble components in a similar sequence. Helicopters may be used in remote locations, and floating wind turbines in deep water utilize semi-submersible vessels for transportation and installation, showcasing the industry’s commitment to specialized techniques for safe and efficient turbine deployment.

Decommissioning

When wind turbines reach the end of their operational life, decommissioning becomes necessary. This process involves disassembling the turbine and its components from the site and restoring the location to its original state. Decommissioning steps typically include disconnecting the turbine from the electrical grid, removing blades, nacelle, and tower, transporting components to recycling or disposal facilities, and finally, restoring the site. The cost of decommissioning depends on factors like turbine size, type, location, and the condition of the turbine and its components. Managing this lifecycle ensures the sustainable and responsible management of wind energy infrastructure.

Innovations

Recent innovations in wind turbine technology are reshaping the renewable energy landscape. Notably, advancements include larger rotor blades and taller towers, enhancing energy capture. The adoption of direct drive generators improves efficiency and reliability, leading to lower operating costs and increased electricity output. Floating wind turbines for deep-water installation expand the potential for wind development. Integration of digital technologies, like sensors and predictive maintenance, enhances overall turbine efficiency and reliability. These innovations contribute to increased competitiveness in wind energy production, marked by higher efficiency, improved reliability, reduced costs, and increased flexibility. Ultimately, these technological strides propel wind energy towards a more competitive and sustainable future, fostering continual industry growth.

Global Outlook on Wind Turbine Manufacturing

In 2022, the manufacturing capacity for key components of wind power, including nacelles, towers, and blades, stayed relatively constant at 110–120 GW. However, it is anticipated that global production capabilities will increase in response to demand, reaching approximately 120–140 GW by 2025. This is only about one-third of what is needed by 2030 to meet the annual demand for IEA Net Zero by 2050. Unlike solar PV manufacturing, wind equipment production is dispersed geographically, with suppliers choosing to establish plants near demand centers due to the high cost and risk associated with transporting large and delicate components over long distances. Until 2025, China is expected to maintain its position as the primary manufacturing hub for all major wind energy components, aligning with its growing demand. Nevertheless, the United States is expected to launch its first manufacturing plants for offshore wind equipment during this period to support planned offshore wind farm development.

Onshore wind equipment manufacturing capacity by region and component, 2022 – 2025

                                                                                        Source: IEA (2023) 

The demand for onshore wind equipment manufacturing capacity is expected to increase in most of the regions in the next three years. China, having the largest capacity in the world for wind equipment manufacturing is expecting a rise in demand significantly larger than others, while the manufacturing capacity in Asia Pacific (APAC) and Europe is expected to remain stagnant for three years. The manufacturing capacity in China is expected to increase from approximately 45 Gigawatts (GW) to approximately 60 gigawatts in the next three years, with the global demand approximately rising by 23 GW in the next three years for onshore wind equipment. 

Offshore wind equipment manufacturing capacity by region and component, 2022 – 2025

                                                                                         Source: IEA (2023)

Like the demand for onshore wind turbines and equipment manufacturing, China is expected to experience most of the rise in demand for offshore wind equipment of approximately 9 GW with North America expecting the second largest increase followed by Europe and Asia Pacific (APAC). The global demand for offshore wind equipment is expected to increase by approximately 15 GW in the next three years for offshore equipment.

As of 2022, the combined active capacity of the top 10 wind turbine manufacturers globally amounted to 473,930 MW. The market size of Global Wind Energy Equipment Logistics was $6.3 billion in 2022 and is anticipated to reach $10.7 billion by 2031.

In 2020, the global wind turbine market had a value of $53.4 billion and is expected to grow to $98.4 billion by 2030, with a compound annual growth rate (CAGR) of 6.3% from 2020 to 2030. This market is segmented based on axis type, installation, component, and region. The axis type is categorized as horizontal and vertical, while installation is divided into on-shore and off-shore. Components include a rotator blade, gearbox, generator, nacelle, and others. In terms of application, the market is fragmented into industrial, commercial, residential, and utility.

Sustainability and Environmental Considerations

Wind turbines offer a sustainable energy solution with zero greenhouse gas emissions during operation, playing a crucial role in addressing climate change. Despite their environmental advantages, considerations arise, including land use implications, potential wildlife impacts, noise pollution, and visual intrusiveness. To mitigate these concerns, careful site selection is imperative, considering factors such as minimizing displacement of agriculture or wildlife habitat. Mitigation measures, such as bird and bat detectors, can reduce collision risks, while strategically sitting away from noise-sensitive areas addresses noise concerns. Thoughtful design and ongoing monitoring contribute to minimizing visual impacts. 

Despite these considerations, the overall environmental benefits of wind energy far outweigh the drawbacks, presenting a clean and sustainable alternative to fossil fuels. Key strategies for minimizing environmental impacts involve strategic siting, mindful design, effective mitigation measures, and continuous monitoring and adaptive management, collectively working to maximize the positive impact of wind energy on our environment