Strong Forecast for European Wind Market in 2010

Ten gigawatts (GW) of new wind power capacity will be installed in the European Union during 2010, according to a new forecast by the European Wind Energy Association (EWEA).

That would take the total installed capacity by the end of 2010 to almost 85 GW–an increase of 13%.

Last year–a record year for wind power installation–saw 10.163 GW of new wind power capacity installed, constituting 39% of all new power capacity installed in the EU that year. Total installed wind power capacity by the end of 2009 was 74.767 GW.

“We predict another strong year for wind turbine installations in Europe, repeating the high level achieved in 2009,” said Christian Kjaer, CEO of EWEA. “What is encouraging is that, unlike in 2009, the 2010 results consist of orders placed after the start of the financial crisis. This shows continued and strong investor confidence in the technology.”

In March, GE (NYSE: GE) announced plans to invest approximately EUR 340 million to develop or expand its wind turbine manufacturing, engineering and service facilities in four European countries; and Siemens (NYSE: SI) announced its intention to build a new factory for offshore wind turbines in the United Kingdom.

In February, Clipper Windpower, Inc. (CWP.L) announced groundbreaking for a new manufacturing facility to produce blades for offshore wind turbines in the UK.

“It is too early to say whether, for a third year running, there will be more wind energy capacity installed than any other electricity generating technology, but it is clear that wind energy will be competing for the top spot with new gas power plants,” added Kjaer.

2010 will see more installations in offshore wind power, with up to 1 GW of new capacity expected to be installed during the year compared to 577 megawatts (MW) installed in 2009. (Offshore wind capacity grew 54% in 2009.)

Spain’s Iberdrola Renovables (IBR.MC) has created a Offshore Wind Division to develop a large portfolio of offshore wind projects. It was one of numerous companies that won bids in January to develop 25 GW offshore wind power by 2020.

EWEA expects France and Italy to again install around 1 GW each in 2010. The expected decline in installations in Spain will be more than compensated for by a doubling of installations in the new member states–led by Romania and Bulgaria–and significant growth in the UK, particularly offshore. Germany is expected to be the largest market this year, closely followed by the UK.

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