Navigant Research has released the fourth edition of Wind Turbine Order Tracker, that identifies trends in the wind power industry by collecting and analyzing wind turbine orders that were publicly announced in 1H 2017.
Global wind turbine orders announced in 1H 2017 reached 11,570.9 MW. This capacity represents a notable decline from the 14,743.9 MW of orders in 2H 2016 and 13,477.6 MW in 1H 2016. There have been several shake-ups in the wind industry over the last year. Most notably, Nordex acquired Acciona in the spring of 2016. More recently, wind power giants Siemens and Gamesa merged this past spring (2017) to form Siemens Gamesa Renewable Energy (SGRE). While the dust is still settling with these mergers, it is difficult to trace the global drop in turbine orders back to them.
Rather, a major change in the Indian wind industry is partly to blame for the decline. India, one of the top countries in wind turbine order capacity in previous versions of this report, saw a drop of almost 2.0 GW in wind turbine orders from 2H 2016. The change from a feed-in tariff to a competitive bidding process has caused uncertainty in the Indian market and some turbine purchasing delay as the market shifts to the auction system.
Once again, Vestas led all turbine vendors with 4,265.9 MW of turbine orders between January and June 2017. This represented a drop of over 2.0 GW of capacity from 2H 2016; however, it is an increase of over 700.0 MW in 1H 2016. Thanks to a couple of massive contracts in Spain and Vietnam, General Electric (GE) jumped into 2nd with 2,928.1 MW of turbine orders won. The US vendor typically limits how many orders it announces, so if nearly 3.0 GW were announced, that suggests this was a strong first half of 2017 for GE. SGRE came in 3rd with 1,632.0 MW of turbine orders. Prior to the merger, Siemens did not report all turbine orders, but since SGRE is a publicly traded company, turbine orders should be much more transparent looking forward. Suzlon and Senvion rounded out the top five with 1,024.0 MW and 850.0 MW, respectively. Nordex was right behind with 711.0 MW of announced turbine orders.
Asia Pacific again led all regions in wind turbine order capacity with 2,775.2 MW signed in 1H 2017. Europe was 2nd with 2,645.6 MW signed between January and June 2017. North America, or more specifically the United States, came in 3rd with 2,527.1 MW of turbine orders during the period. There were no turbine orders announced in Canada this period, so the United States accounted for all capacity in North America. Latin America recorded 741.8 MW of orders and the Middle East & Africa came in a distant 5th place with 198.8 MW. All five regions saw a significant drop in order capacity from 2H 2016 with Asia Pacific recording the largest decrease of over 1,500.0 MW. It should be noted, however, that there were 2,682.5 MW worth of orders that were only reported via quarterly reports and thus no region or country is attached to them.
As has been the trend for the last several years, turbine rating and rotor diameter increased from the previous Wind Turbine Order Tracker. The calculated weighted average of turbine capacity rose from 2.66 MW to 2.76 MW and weighted average rotor diameter went from 115m to just under 120m. For the projects that provided hub height information, the average was right 110 m, which is a notable jump from the 97 m reported in 2H 2016. The continued increase of these values indicate that wind farm developers and OEMs are trying to maximize power output in areas of moderate to low wind resources. Offshore orders were sluggish this period, with only two known orders totaling just 48 MW.
NOTE: Although this Tracker is a comprehensive collection of all turbine orders that have been made public over the given period, there remains a significant amount of capacity that is not able to be accounted for in this Tracker. Despite being one of the top wind power markets in the world, Chinese wind turbine OEMs are not accounted for in this Tracker due to the lack of availability of data in this market. There are rare exceptions for this, such as when a turbine order is announced for a Chinese OEM that is outside of its home market.
Source: Navigant Research