Renewable energy technologies such as wind power have received a huge boost with the increasing impact of greenhouse gas emissions and the need to mitigate their effects on the environment. Governments are increasingly seeking energy security and they have realized that using indigenous sources of fuel not only improves their self-sufficiency, but also provides better national security.
New analysis from Frost & Sullivan (energy.frost.com), Asia Pacific Wind Power Markets, finds that the markets earned revenues of $1.95 billion in 2009 and estimates this to reach $4.02 billion in 2016.
The global financial downturn in 2008 and 2009 compelled governments to offer several economic stimulus packages for companies that invested in renewable energy. Moreover, the volatility of oil and gas prices has intensified nations' need to reduce their dependence on imported fuels for power generation.
These issues have presented wind power generators with ample opportunities to harness the untapped wind reserves in the region. This considerable unexploited potential, along with government support, has stoked significant interest among the utility companies and private project developers.
Small wind turbines are gaining market acceptance for sustainable onsite power generation in urban areas, whereas medium and large wind power systems generate clean electricity that is supplied through the utility grid. Meanwhile, the limited availability of onshore wind power sites is a compelling argument in favor of offshore wind power systems.
However, wind power project developers are still unable to make the most of these opportunities due to the presence of inconsistent zoning codes, requisition of several approvals, inefficient bureaucracy, and transmission bottlenecks. These challenges not only consume time, but also involve significant costs at every stage of development.
"Moreover, the preference for low-cost electricity from utilities, the established market for proven diesel-fired generator sets and the spotlight on solar photovoltaic systems restricts the market penetration of wind power," says Frost & Sullivan Program Manager Suchitra Sriram. "Hence, like any other renewable energy technology, wind power market development is highly dependent on government incentives and subsidies to keep costs under control."
Zoning, siting, and permitting issues obstruct large-scale deployment of wind turbines, while grid interconnection issues restrain market development in other cases. Moreover, in countries with extensive utility grid coverage and low electricity rates, high initial investment outlays dissuade the uptake. Regional- and state-specific incentives and subsidies from governments can solve these restraints.
"Introduction of consistent zoning policies as well as simplifying and streamlining the approval procedures are expected to attract more investments in the wind power market, especially from private project developers," notes Sriram. "Besides, timely information dissemination on existing technical guidelines and approval processes will also go a long way in increasing the uptake of wind power systems."
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state, and country.
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Asia Pacific Wind Power Markets / P3AE