By Rikki Stancich

Last week two sets of figures were released that augur well for the global wind energy sector in 2011. Official figures from British industry association RenewableUK, revealed a 91 per cent increase in full-time employment in the sector between 2007/8 and 2009/10, contrasting sharply with to the overall UK employment level, which shrunk during the same period by 3.4 per cent. A second set of figures released last week by the Global Wind Energy Council indicate that significant in-roads are being made in non-traditional markets, giving a strong signal that the wind sector is globalising.

The latest report from RenewableUK identifies 9,200 FTE employees as working in the large-scale wind energy industries in 2009/10. A comparable study commissioned by RenewableUK from Bain & Company in 2008 recorded 4,800 FTE employees in the sector for the 2007/8 period.

According to Maria McCaffery MBE, Chief Executive of RenewableUK, the study demonstrates how the UK’s wind energy sector has not only withstood the negative GDP growth of the UK recession, it has also “bucked the overall employment trend in a spectacular way by a near doubling of the workforce." 

"The increase in jobs has, to a large extent, mirrored the increase in electricity contributions from renewable sources, chiefly wind, to the grid,’ says McCaffery.

Wind energy to boost UK economy

The UK government’s announcement to commit to port upgrades in last year's Spending Review has attracted a raft of inward investment decisions to the UK over the last six months. This in turn promises to boost employment in the sector in coming years.

Wind turbine manufacturer Gamesa recently made public its industrial plan for offshore wind power in the UK, where it intends to invest over €150 million (US$204mn) through to 2014. Gamesa is to establish its marine wind technology centre in Scotland, and is formulating a Memorandum of Understanding (MoU) with Scottish Enterprise, Dundee City Council and Forth Ports plc to develop manufacturing, logistics and operations and maintenance (O&M) activities in the Scottish port.

Gamesa is not alone in recognising the UK’s potential. Siemens also recently announced its decision to use Hull as the preferred location for its UK manufacturing operations. The German engineering conglomerate signed an MOU last month with port operator Associated British Ports (ABP). ABP is to build a £100m deepwater berth at Alexandra Dock, Port of Hull, capable of handling the new generation of large offshore wind turbines. Siemens is to build a new £80m wind turbine plant on the same site.

"It is obvious that acting decisively on reducing carbon emissions and diversifying our energy supply will bring a double bonanza of increased green energy yields and economic growth," McCaffery notes.

"There is a clear link between sector activity and UK employment gains. Creating a policy framework that ensures that our wind, wave and tidal resources are fully utilised will create jobs and stimulate economic activity at a time when we need it most," she adds.

US market needs greater incentive

Across the Atlantic, the US is undergoing the inverse of the UK’s experience. “Our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more,” says Denise Bode, CEO of the American Wind Energy Association (AWEA).

The result has been a near 50% dive in annual wind power installations, from 10 GW in 2009 to just over 5 GW in 2010, according to the latest figures from the Gobal Wind Energy Council (GWEC).

 “Now that we’re competing with natural gas on cost, we need consistent federal policies to ensure we have a diverse portfolio of energy sources in this country,” she adds.

Wind energy emerges in new markets

Elsewhere, the wind energy sector is gaining a foothold in markets with more favourable renewable energy policies. A set of figures released last week by GWEC reveals for the first time more than half of all new wind power was added outside of the traditional markets in Europe and North America. This additional capacity was, for the most part, driven by a continuing boom in China, which accounted for nearly half the new wind installations (16.5 GW).

 “China now has 42.3 GW of wind power, and has surpassed the US in terms of total installed capacity,” said Li Junfeng, Secretary General of the Chinese Renewable Energy Industry Association (CREIA). According to Mr Li, this puts China firmly on track to reaching its target of 200 GW of installed wind power by 2020. At the same time, China is fast becoming the world’s largest producer of wind energy equipment.

Other developing countries have also expanded their wind capacity, including India, which added 2.1 GW in 2010, Brazil (326 MW), Mexico (316 MW), and 213 MW were installed in North Africa (Egypt, Morocco and Tunisia).  

“Wind power is now rapidly expanding beyond the traditional ‘rich country’ markets, a clear sign of its growing competitiveness,” said Steve Sawyer, GWEC’s Secretary General.  

“This is a trend we are expecting to see developing further in the future, not only in Asia. We are also seeing encouraging signs in Latin America, especially Brazil and Mexico, and in both Northern and Sub-Saharan Africa.”

Last year, global wind power installations increased by 35.8 GW, bringing total installed wind energy capacity up to 194.4 GW - a 22.5% increase on the 158.7 GW installed at the end of 2009. The new capacity added in 2010 represents investments worth EUR 47.3 billion (US$65 bn).

 “2010 was a tough year for most industries and wind power was no exception. 2011 will be better. Orders picked up again in the second half of 2010, and investments in the sector continue to increase,” says Sawyer.

However, despite 50% growth in offshore wind in countries such as the UK, Denmark and Belgium, European Wind Energy Association (EWEA) CEO Christian Kjaer warns the industry not to be complacent.

“We cannot take for granted the continued financing of renewable energy…Better access to financing is urgently needed, and the European Union must act without delay to prevent Europe losing its leadership in wind power and other renewable technologies.”

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Rikki Stancich: rstancich@gmail.com