in News Departments > New & Noteworthy
print the content item



With wind energy capacity growing at a rapid pace, the value of the global operations and maintenance (O&M) market is expected to increase from $3 billion in 2008 to $19 billion by 2020, says research and consulting firm GlobalData.

According to a company report, more than 191 GW of wind power capacity was added between 2008 and 2012, which has drastically increased O&M expenditure from $3 billion to $7 billion in the same period, demonstrating a compound annual growth rate (CAGR) of 15.6%.

Offshore wind energy will continue to attract higher O&M costs in comparison to onshore wind, reaching a market size of $5 billion - or a 29% share of the total O&M market - in 2020, the report adds.

“Higher turbine maintenance, high logistics costs and a lack of skilled manpower make offshore wind services more challenging than the onshore equivalent,” comments Prasad Tanikella, GlobalData’s senior analyst. “Although onshore wind also faces similar issues, the impact of these factors on the offshore segment is more significant.”

Currently, the U.S. is the largest O&M market in the world, but GlobalData expects that China will surpass it to become the leader in O&M expenditure with a 24.7% share of the market by 2020.

According to the report, the growth in the wind industry’s O&M cost is largely due to the increasing age of wind turbines and the failure of components such as blades and gearboxes.

“This increase in market size is leading to a rise in the number of companies providing specialized wind turbine O&M services, which is in turn bringing the benefit of lower costs to consumers,” concludes Tanikella.



IowaDeptEconDevel_id1863

Trachte Inc._id1770
Latest Top Stories

Smart Community Engagement: Twelve Tips Every Wind Developer Should Know

Community engagement helps ensure a project runs smoothly, but it can also save developers money and even lead to a more successful wind industry overall.


Bird Groups Target LEEDCo's Icebreaker Offshore Wind Pilot

Two bird conservation groups that helped halt a wind project earlier this year argue that Lake Erie Energy Development Corp.'s (LEEDCo) 18 MW offshore demo poses a major risk to regional wildlife.


Report Disputes U.S. Agency's Renewable Energy Projections

A new analysis from the Sun Day Campaign says renewables are slated to provide 16% of U.S. generating capacity by 2018 - over 20 years earlier than forecast by the Energy Information Administration.


Kansas Renewables Mandate Survives Yet Another Attack, But Is It Too Early To Celebrate?

Over the past three years, some legislators have tried to either weaken or repeal the state's renewable portfolio standard, which requires Kansas utilities to reach 20% renewables by 2020.


AWEA Highlights U.S. Wind Success Stories Of 2013

Despite a 92% drop in new capacity last year, the sector still has myriad reasons to celebrate, according to a new report from the American Wind Energy Association.

WomenofWind_id
Acciona_id1907
UEA_id1896
JLG_id1900
bonfiglioli_id1913
AWEA_id1886