The global wind supply chain has been through a transition in the past six years. During the period 2011-2014, more than 120 suppliers have collapsed or stayed out of the wind sector due to the challenges of overcapacity, demand slump caused by the economic recession and policy uncertainty in Europe, the U.S., China and India. This has resulted in a more streamlined global wind supply chain. Although the annual wind power installation has bounced back in 2015, and in fact made another record, the industry actually saw the supply chain becoming even slimmer. This is primarily due to the collapse of Tier 3 turbine OEMs in Asia Pacific and the consolidation taking place on the global level during 2015-2016.
The current supply chain situation is in favor of turbine OEMs as the global wind supply chain has become more mature after the transition. Component suppliers that can provide qualified products and innovative solutions at a lower cost can be found in different regions. Investments made by large, independent blade suppliers in emerging markets has not only increased local accessibility and flexibility for turbine suppliers but can also insulate OEMs from market fluctuations.
In the Global Wind Supply Chain Update 2016 report, FTI Intelligences examines the latest supply chain situation for 12 key components, which account for more than 80% of a wind turbine’s total cost. In addition, this report also includes an assessment of offshore wind farm balance of plant and a summary of the supply chain strategies for the world’s top 15 turbine OEMs.
Key components include
- Nacelle Housing and Spinner Covers
- Brake Systems
- Electrical Components
- Pitch and Yaw Drives
- Offshore Balance of Plant