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Published: 01 March 2016 01 March 2016

Growth in Europe and Around the World

Normally around this time of the year many of us are preparing for the annual wind energy conference organised by the European Wind Energy Association (EWEA). But EWEA has recently signed an agreement with Hamburg Messe und Congress GmbH to host its annual conference in parallel with the WindEnergy Hamburg exhibition at least till 2020 and thus has given up its spot in the first part of the year.

This year the Polish Wind Energy Association (PWEA) has stepped in to fill up the place in the calendar and is organising Wind Power Poland 2016 from 8 till 9 March in Warsaw. This show will be the largest wind industry conference and exhibition in Central and Eastern Europe this year. The event will bring together senior representatives of the European Commission, regulatory agencies and the wind industry to discuss the most pressing issues affecting the future of Polish and regional energy markets, in the European context. According to figures released by the Global Wind Energy Council (GWEC), Poland installed 1,266MW in 2015 and was ranked as the second highest growth market in Europe (after Germany). Poland's total installed capacity is now 5.1GW. Due to its location and the home market potential Wind Power Poland could develop itself as the gateway to Central and Eastern European countries.

New Global Installation Record
According to preliminary figures released by the World Wind Energy Association (WWEA), the world has seen a new record in new wind installations, adding 63,690MW in 2015. The total wind capacity of the world has reached 435GW. The global growth rate of 17.2% was higher than in 2014 (16.4%). Among the top 15 markets, Brazil, Poland, China and Turkey were the most dynamic countries and saw the strongest growth rates.

China is for sure the global wind power leader. The country added 33GW of new capacity in 2015, which represents a market share of 51.8%. The USA market saw good performance with 8.6GW of added capacity, the strongest growth since 2012. Germany, in anticipation of changes in legislation, installed 4.9GW. Wind power contributed a new record of 13% of the country's power demand in 2015. As in 2014, Brazil was the fourth largest market for new turbines with a market volume of 2.8GW. India saw 2.3GW of new installations by November 2015, enough to bypass Spain as the fourth largest market in terms of total capacity. While Canada performed well, and Poland and Turkey both even climbed in the global ranking, Spain was a great disappointment with zero added capacity. No country which had previously played a leading role has ever seen such a complete standstill.

To many of you it will come as no surprise that the industry is consolidating. After the Nordex–Acciona deal from last year Siemens is now in talks to acquire Gamesa. And it seems Siemens is also holding talks about buying Iberdrola SA’s 20% stake in Gamesa. Siemens has a strong footprint in the offshore business and Gamesa is stronger onshore and in emerging markets. Further details about the deal are unknown as I write this note. If this deal becomes real both companies together will create the world’s largest wind turbine manufacturer with a market share around 15%. I also expect that this deal will probably not be the last one we will see. Who will be next?

Enjoy reading,

Floris Siteur

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