Europe's wind turbine makers are facing higher raw materials costs, a lack of trained workers and insufficient investments in electricity grids and new wind parks, with the record growth rates of previous years expected to level off. But the sector remains confident that EU renewable energy targets will be met. ...Given the challenges facing the sector and with growth expected to slow, there are concerns the industry will fall short of the target. In 2007, only 8.5 gigawatts were installed. Nonetheless, the wind sector is optimistic.

Europe's wind turbine makers are facing higher raw materials costs, a lack of trained workers and insufficient investments in electricity grids and new wind parks, with the record growth rates of previous years expected to level off. But the sector remains confident that EU renewable energy targets will be met.

Strong winds

The wind energy sector has enjoyed impressive growth since 2000 and particularly since the middle of the decade. Europe's wind capacity grew by 19% in 2006 alone, with the global wind energy market swelling by 32%, or approximately 15,000 megawatts, according to EurObserv'ER, the European Renewable Energy Observatory.

In 2007, global growth figures for the sector were even higher than in 2006, but Europe's share of the global total declined, with the US taking the lead and developing nations in Asia and Indian sub-continent making considerable strides, according to EurObserv'ER. China in particular has set its sights on becoming a global leader in wind turbine manufacturing (EurActiv 15/11/07).

Bottleneck?

As a result, Europe's growth rates are expected to level off in the coming period. "I don't think we'll see sustained growth over the next few years", at least not at the high rates of previous years, said Christian Kjaer, chief executive of the European Wind Energy Association (EWEA).

Structural limitations may be part of the problem.

In Germany, for example, growth is being slowed by insufficient electricity grid infrastructure, hesitant investors, and rising raw material costs, notably for copper and steel, according to Ulf Gerder of the German Wind Energy Association (BWE).

The BWE is pushing Berlin to up the country's feed-in tariff to 9.6 cents per kilowatt hour of wind energy produced on land. The government's current proposed rate of eight cents is not sufficient to convince banks to put up the necessary funding for new wind parks or for expanding electricity grids, according to Gerder.

People power

A lack of trained technicians and engineers also weighs heavily on the minds of the industry. Finding enough skilled workers "is an enormous challenge in Europe," according to Kjaer, who cited examples of companies that are simply unable to fill dozens of vacancies for qualified engineers technical staff.

"Europe needs to educate far more technical staff and engineers to maintain its global leadership position in wind energy," he said.

Tackling targets

The Commission wants wind to provide 12% of the bloc's power by 2020, up from the current figure of 3.7%. To reach this sub-target, 9.5 gigawatts of new wind energy capacity needs to be installed annually over the next 12 years.

Given the challenges facing the sector and with growth expected to slow, there are concerns the industry will fall short of the target. In 2007, only 8.5 gigawatts were installed.

Nonetheless, the wind sector is optimistic. Increasing the output of wind energy by 1% annually compared to previous years will "not put a lot of strain on the European market," according to Kjaer.

But he also admits that rising global demand may influence the situation. While most turbines sold and installed around the world are still being built by European firms within Europe, the situation may be set to change.

A new US presidential administration may well push for a more favourable US renewables policy, and demand from China and India is unlikely to diminish. This is likely to inspire European firms to take their operations outside the EU where production is cheaper, more engineers are available, and consumers are closer, according to Kjaer. Many observers agree that such a scenario is particularly likely if a high euro exchange rate makes turbines produced in Europe more expensive.

 

Web link: http://www.euractiv.com/en/energy/eu-wind-sector-c...