Global Wind Supply Chain Update 2015 (Available Now)
In this report, we examine the supply chain situation for 12 key components (350+ suppliers) and three key materials (150+ suppliers), which account for more than 95% of a wind turbine’s total cost. In addition, to the specific components and materials, it also includes an assessment of offshore wind farm balance of plant, the summary of supply chain strategies for the world’s top 15 turbine OEMs and the forecast for the global wind market growth to 2018.
The wind industry is still in the process of transformation. The slump of demand in 2013 caused by the economic recession and policy uncertainty and inconsistency in Europe, the US, China and India have resulted in a more streamlined global wind supply chain. The wind industry saw more than 120 suppliers have been “burned” in the past 24 months, of which 88 from Asia, 23 from Europe, and 18 from North Americas. In general, no constraint has been identified in the global supply chain although rumors about reducing the feed-in tariff in China at the end of June 2015 caused panic in the local supply chain. There is, in fact, still significant surplus of supply for most of key components and materials, but the regional distribution for several key materials such as rare earth elements and forgings is extremely uneven. Currently, there is a delicate balance in the offshore wind supply chain, but the installation of next generation multi-MW turbine indicates a potential sourcing challenge for large components and balance of plant elements. To bring down the cost of wind energy in order to compete with other energy sources, the global wind supply chain has come to terms with a new reality, which leads us to conclude that consolidation will continue, and more Tier 2 and Tier 3 suppliers are likely to be washed out in the next two to three years.
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Senior Vice President
Senior Managing Director, Leader of Power & Utilities Practice