Executive Summary
Wind power forms a very small part of the total electricity
generation at the global level, when compared to power from fossil
fuel and hydro power. However, countries are increasingly adopting
wind power and other renewable energy sources to reduce their
reliance on fossil fuels and minimize the impact on the environment.
In terms of installed capacity for power generation, wind energy is
growing faster than other renewable energy sources such as solar
energy, geothermal energy, and tidal energy. Wind energy generation,
which initially started in Europe and the United States, is
gradually expanding to the rest of the world. In 2005, 11 countries
- Germany, Spain, Denmark, Italy, the UK, the Netherlands, Portugal,
India, China, Japan, and the US - each accounted for more than 1000
MW of wind power generation capacity, as compared to only five
countries having an installed capacity of more than 1000 MW in 2003. |
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In 2003, the share of the top five wind energy generating countries
- Germany, Spain, USA, India, and Denmark - in global installed
capacity was about 82%. This share decreased to about 79% in 2004,
which further declined to about 77 % in 2005. Generation of wind
power is critical for developing nations to meet the growing demand
for power resulting from increasing population and
industrialization, especially in view of the increasing price of
oil. Asia, with an annual growth rate of about 48%, is expected to
emerge as a major wind power-generating region in the near future.
In 2005, Asia accounted for 20% of the additions to the global wind
power generation capacity. In Asia, India dominates in terms of
installed capacity for wind power generation, while in Europe,
Germany has the largest installed capacity for wind power
generation. Considering the generation cost of wind energy and the
immense power generation potential from wind energy, governments at
the international level are implementing a number of financial
incentive systems and financing policies to encourage the
installation of wind farms. And these governmental measures appear
to be yielding results.
Technological innovations are continuously bringing down the
generation costs of wind power. Wind turbine manufacturers are
upgrading production capacity to meet the growing demand for wind
turbines at the global level. Investment in the wind energy sector
at the global level is also increasing with venture capitalists
finding it attractive to invest in wind power generation projects.
In 2004, wind energy accounted for 72% of the total investment in
the green energy market.
In 2005, the United States recorded the largest investment in the
wind energy sector. Future prospects for the wind energy market are
bright and global installed capacity for generation of wind power is
projected to reach 120,000 MW by 2010. As the wind energy market
grows, the number of wind energy projects is estimated to initially
increase. The larger wind farms may eventually acquire the smaller
wind farms, resulting in market consolidation.
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