Wind renewable companies’ strategy management

The leading wind turbine manufacturers globally have been enjoying good growths in recent years. These have been driven largely by the increasing cost competitiveness of wind renewable power plants against fossil power plants. There has also been strong competition from low-cost natural gas and solar PV power plants. To improve efficiencies and reduce costs, wind renewable companies have to continue innovating and implementing new cost reduction measures. Most wind turbine manufacturers are located in China, the EU, India and the USA.

The world’s top ten turbine manufacturers have been accounting for some 75% of the global wind market. Vestas from Denmark has retaken its leadership position back from Goldwind from China. Vestas has been the most globalised wind supplier internationally, with installations in some 34 countries. GE from the USA has also grown strongly to become one of the top three turbine manufacturers globally. Other leading turbine manufacturers include Gamesa from Spain, Enercon from Germany, Siemens and Nordex Acciona from Germany plus United Power and Envision and Mingyang from China. These leading wind turbine manufacturers have also been sourcing their wind turbine components from many countries globally.

In response to the rising demands for wind power technologies and projects, turbine suppliers and project developers have been expanding globally. Many

Wind renewable energy growth management 59 have been opening new factories and offices around the world. A good example is that Siemens has opened a new wind turbine blade plant in England and has also broke ground on a nacelle factory in Germany. Siemens has also finalised an agreement to build a rotor blade manufacturing factory in Morocco in Africa.

Leading wind companies have also been expanding their scale and global reach through some important merger and acquisition (M&A) activities as further consolidations have continued across the value chain. A good EU M&A example is the merger between Siemens and Gamesa, which has been confirmed and cleared by the EU. This would help to create the world’s largest wind power company in terms of capacity in operation. Sicmens-Gamesa has also announced plans to purchase from the French nuclear firm Areva its shares in Adwcn which is a German company in the offshore wind industry.

Another good M&A example is that Nordex has completed its acquisition of Acciona Windpower, which has good wind positions in emerging markets. This should help the new group to become a major global player. To gain assets upstream, GE has also acquired LM Wind Power from Denmark. It is a leading wind turbine blade manufacturer which has supplied wind turbine blades to most of the world’s top turbine manufacturers. Senvion has also acquired the wind turbine blade manufacturer, Euros Group from Germany.

Several state-owned Chinese wind companies have also acquired assets around the world. A good example is that China General Nuclear Power has acquired 14 Irish wind farms from Gaclectric. Electricité de France (EDF) has also become the first European wind operator to enter the Chinese market when it acquired UPC Asia Wind Management.

The wind industry has also shown growing interest in innovative hybrid energy integrations, particularly with solar PV. These new innovative hybrid renewable energy integrations could help to strengthen a renewable plant’s generation profile plus enable optimal sharing of resources for construction and maintenance. Hybrid energy projects which have included innovative advanced energy storage technologies have also been developed. These have resulted in wind renewable companies also expanding into other renewable business sectors, especially solar renewable power. A good example is that four of the world’s top wind turbine companies, including GE, Gamesa, Goldwind and Mingyang, have all developed new corporate strategies to support their expansion from wind renewables into the solar renewable business sector.

Other wind companies have been developing new hybrid technologies to develop various integrated solar PV-wind hybrid projects. A good example is that Suzlon from India and Gamesa have both announced plans to increase their focus on new wind-solar hybrid developments. Gamesa has also unveiled a new hybrid solar-wind-diesel system, with energy storage for the off-grid sector.

Some leading multinational oil and energy companies have also been adopting new corporate strategy to expand into wind renewable energy. Good examples include Shell, Statoil, Keystone, etc. They have been able to leverage their expertise in offshore oil exploration and development into offshore wind development. A good example is that Shell has been developing offshore wind platforms invarious countries globally. DONG Energy has announced that it will be selling its core oil and gas business to focus on offshore wind power. Russian state-owned nuclear company Rosatom has also entered the wind energy market with plans to develop a 610 MW wind project pipeline.

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