Wind Power Generation Industry Profile

The US wind power generation industry includes about 200 companies that operate varying numbers of wind farms. Major companies in the small but rapidly growing industry include NextEra Energy, IBERDROLA Renewables (a US division of Spain's IBERDROLA), and Xcel Energy. Major suppliers of wind farm infrastructure include divisions of GE and Siemens (Germany). The industry is concentrated: the top five companies account for about 50 percent of the wind power capacity, according to the American Wind Energy Association.

Global wind turbine capacity totals 240 gigawatts (GW), enough to supply 3 percent of the world's energy needs, according to the World Wind Energy Association. Emerging countries are responsible for much of the world's new wind farm development: China installed about 18 GW of wind power capacity in 2011, followed by the US (6.8 GW), India (2.7 GW), Germany (2 GW), and Canada (1.3 GW). While development has stagnated or dropped in several European markets, China, Brazil, India, and Mexico represent new development opportunities for global wind power generators. Major international firms include London-based BP, Spain's IBERDROLA and EDP Renováveis, and Enel Green Power of Italy.

COMPETITIVE LANDSCAPE

Demand for wind power generation is driven by public support for alternative, nonpolluting renewable energy production methods, and government incentives that encourage the production and use of renewable energy. Profitability of individual companies depends on strategically locating wind farms in geographies with sufficient wind conditions and access ...