Opportunities in the Wind Industry Supply Chain

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Ports-to-Plains Energy Summit
Omni Interlocken Resort
Broomfield, CO
April 7, 2011
The Ports-to-Plains Corridor runs through the middle of North America’s wind corridor. Learn about the issues affecting this growing industry throughout the region.

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Opportunities in the Wind Industry Supply Chain

  1. 1. Opportunities in the WindIndustry Supply Chain – A National Perspective April 7, 2011 Ports-to-Plains Energy Summit Denver, CO Tom MavesAmerican Wind Energy Association
  2. 2. What is AWEA ?American Wind Energy Association www.awea.orgNational trade association for the wind energy industry Legislative / Lobbying Education & Outreach Member ServicesCurrently >2500 business, utility, academic, and non-profit members
  3. 3. Status of the Wind Energy Industry
  4. 4. Wind Energy Industry Status at End of 2010The U.S. wind energy industry installed 5,115 MW in 2010.The fourth quarter of 2010 saw 3,195 MW installed.Capacity nationwide now totals 40,180 MW, an increase in capacity of 15% over the start of 2010.Over 5,600 MW are under construction entering 2011.Over 400 manufacturing facilities in U.S., producing 50% of turbine components.
  5. 5. U.S. Wind Project Additions, by Year The U.S. wind industry installed 3,195 MW of wind power in the fourth quarter of 2010. That was below the 4,113 MW installed in the same period in 2009, but an improvement over the third quarter of 2010, when only 670 MW Wind Capacity (MW) were installed. The U.S. finished the year with a total of 5,115 MW of new wind power. U.S. cumulative capacity now stands at 40,180 MW.American Wind Energy Association * 4th Quarter 2010 Market Report
  6. 6. Wind Project Installations, by QuarterAmerican Wind Energy Association * 4th Quarter 2010 Market Report
  7. 7. Operating Wind Projects, by StateAmerican Wind Energy Association * 4th Quarter 2010 Market Report
  8. 8. Operating Wind Projects, by StateAmerican Wind Energy Association * 4th Quarter 2010 Market Report
  9. 9. Installation & Construction TrendsAmerican Wind Energy Association * 4th Quarter 2010 Market Report
  10. 10. Wind is an Affordable Form of New Energy
  11. 11. Over 400 U.S. Manufacturing Plants Serve the Wind Industry Today
  12. 12. AWEA Priorities for 2011• Long term PTC Extension• Wildlife / Siting issues• Transmission policies and legislation• State / Regional issues• Renewable Energy Standard at federal level
  13. 13. 37 Other Nations Have Enacted Long-Term Renewable Policy AA
  14. 14. Lack of Stable Market Signals Creates a Boom-Bust Cycle for Wind
  15. 15. Fossil Fuels Enjoy Permanent Incentives 5x Those of Renewables
  16. 16. Federal Tax Incentives• Production tax credit for large wind available through 2012 • Ability to claim 30% investment credit, and receive cash grant in its place through 2011• 30% investment tax credit for small wind• 30% tax credit for expanding, building manufacturing facilities
  17. 17. Federal RES Would Yield Significant Job Creation 1. Data included direct, indirect, and induced labor. 2. Results are for a 25% RES by 2025 compared to no national RES. 3. 1 Job is defined as 1 Full Time Equivalent (FTE).Source: Navigant Consulting
  18. 18. AWEA Annual Market Report● Annual Report to be issued on April 7th in conjunction with Finance Workshop in NYC● Will be available at www.awea.org
  19. 19. May 22 – 25, 2011Anaheim Convention Center Anaheim, CA
  20. 20. Wind Turbine Supply Chain – Overview
  21. 21. DISTRIBUTION OF TURBINES INSTALLED IN 2009 BY CAPACITYSource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  22. 22. AVERAGE WIND TURBINE CAPACITY Over 5,600 turbines were installed in 2009, bringing the total to over 33,000 turbines. The average capacity for new turbines added in 2009 was 1.75 MW, up from 1.67 MW in 2008.Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  23. 23. Wind Turbine Size
  24. 24. Basic Supply Chain Raw Major Component TurbineMaterials Component Suppliers ManufacturersSuppliers Suppliers
  25. 25. Wind Turbine Major Components Hub Nacelle Blade Tower
  26. 26. Inside a Wind Turbine NacelleTower
  27. 27. Turbine ComponentsThere are over 8000 components in a turbine, including:Towers: Nacelle: Foundation:● Towers ● Nacelle Cover ● Rebar● Ladders ● Nacelle Base ● Concrete● Lifts ● Heat exchanger ● Casings ● ControllersRotor: ● Generator Other:● Hub ● Power ● Transformers● Nose Cone Electronics ● Bolts/Fasteners● Blades ● Lubricants ● Wire● - Composites ● Filtration ● Paints and Coatings● - Blade Core ● Insulation ● Lighting● Pitch ● Gearbox ● Lightning Protection Mechanisms ● Pump ● Steel Working/Machining● Drives ● Drivetrain ● Communication Devices● Brakes ● Ceramics ● Control & Condition Monitoring Equipment● Rotary Union ● Shaft ● Electrical Interface & Electrical Connection ● Batteries ● Bearings ● Brakes
  28. 28. SIZES AND MATERIAL USE FOR UTILITY-SCALE TURBINES INSTALLED IN 2009Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  29. 29. Wind Turbine Supply Chain – Major Components
  30. 30. TOWERS TOWERSCredit : Carell Corp.
  31. 31. TOWERS – Market Overview● The tower sector was the first to develop a strong domestic supply base due to logistical issues of transporting towers. Most towers installed in the US are domestically manufactured.● Towers are typically 2/3 of the weight of 200 to 400 ton utility-scale turbines, and are almost entirely steel● Number of facilities in 2004: 6● Number of facilities in 2009: 20● Additional announced facilities: 8
  32. 32. MAJOR FACILITY LOCATIONSTOWERS – Mfg Locations
  33. 33. TOWERSBLADES
  34. 34. BLADES – Market Overview● The blade sector was the second to develop a strong domestic supply base due to logistical issues of transporting blades. Most blades installed in the US are domestically manufactured.● Number of facilities in 2004: 4● Number of facilities in 2009: 9● Additional announced facilities: 3
  35. 35. MAJOR FACILITY LOCATIONSBLADES – Mfg Locations
  36. 36. TOWERSDRIVE-TRAIN
  37. 37. DRIVE-TRAIN – Market Overview● The drive train contains multiple value-added areas● The U.S. is still in the process of developing manufacturing capacity for drive train components● Domestic drive train sourcing is driven by the presence of nacelle assembly facilities.Nacelle assembly facilities:● Number of facilities in 2004: 3 (all GE)● Number of facilities in 2009: 8● Additional announced facilities: 8
  38. 38. MAJOR FACILITY LOCATIONSTURBINE ASSEMBLY – Locations
  39. 39. TOWERSELECTRICAL COMPONENTS
  40. 40. ELECTRICAL COMPONENTS● Types of Electrical Components: ● Slip Rings ● SCADA Systems ● Converters ● Lightning Protection ● Transformers ● Communication Devices ● Electrical Wire & Cable ● Batteries ● Fiber Optics ● Electrical Interface and ● Control Systems & Connection Condition Monitoring ● Switchgear ● Cable Accessories ● Grid Connection Equipment ● Motors
  41. 41. ELECTRICAL – Market Overview● For many electrical commodities – U.S. in nascent stage of developing manufacturing capacity● High OEM Visibility and Focus • High impact on reliability / total cost of ownership • Highly specified - heavily influenced by European standards. • May be proprietary technology • Safety implications● Driving sourcing from current overseas suppliers● Migration is in progress
  42. 42. ManufacturingFacilities and Jobs
  43. 43. GROWTH OF OEMS IN U.S. MARKETSource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  44. 44. MANUFACTURERS’ SHARE OF 2009 INSTALLATIONS IN U.S.Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  45. 45. NEW WIND MANUFACTURING FACILITIES IN 2009 While 2009 was a strong year for announced manufacturing facilities, it was down from 2008. In 2008, 58 facilities came online, were announced or expanded, compared to 39 in 2009 and 24 in 2007.Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  46. 46. GROWTH OF DOMESTIC CONTENT There has been a dramatic shift towards domestic 2008 manufacturing for wind turbine components 2005 2009 Domestically Mfg Components Domestically Mfg Components Inported Components Inported Components ~25% domestic components ~50% domestic components ~2,500 MW installed ~1,500 turbines installed ~10,000 MW installed ~5,600 turbines installedSource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  47. 47. TOTAL U.S. WIND INDUSTRY EMPLOYMENTSource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  48. 48. WIND INDUSTRY JOBS BY STATESource: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009
  49. 49. Supply ChainOpportunities –Resources and Services
  50. 50. Manufacturing Working Group● Recently formed task forces • Incentives • Export Promotion • Qualifications & Specifications • R&D and Commercialization● AWEA Manufacturing Working Group open to any AWEA business member in good standing who has US-based manufacturing and is a current supplier for the industry.● Contact AWEA for more information at: jisaacs@awea.org or tmaves@awea.org
  51. 51. Transportation & Logistics WG● The mission of the TLWG is to eliminate transportation related constraints and standardize policy and procedures between states to enable the growth of the U.S. wind industry● Seven priority issues being pursued● The TLWG is open to any AWEA business member in good standing who is involved in the transport and logistics associated with moving, storing and delivering wind turbines and components● Co-chaired by Vikash Patel, GE Energy Logistics and Nikhil Amin, Trinity Logistics● Contact: Tom Maves, tmaves@awea.org
  52. 52. Operations & Maintenace WG● This working group is open to any AWEA business member in good standing who is involved in the O&M aspects of the industry● Co-chairs recently established, currently forming Advisory Group● Currently prioritizing member issues and forming strategies for solutions● Contact: John Dunlop, jdunlop@awea.org
  53. 53. GLWN: Global Wind Network● Leading Supply Chain Advisory Group● 1500 Manufacturers and Suppliers across North America ● Component Head-hunters for OEMs ● Resource to Manufacturers, Service Suppliers● Mission: Increase the Domestic Content of US Wind Turbines● Get Connected: GIS Supply Chain Map www.glwn.org
  54. 54. Questions ? Tom Maves www.awea.org | 614-670-8961 | tmaves@awea.orgWINDPOWER 2011 – Anaheim, CA – May 22-25, 2011 www.windpowerexpo.org

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