Climate and energy

Great Lakes WIND Network (GLWN), a manufacturing-based non-profit whose mission is to increase the domestic content of North America’s wind turbines, presented a lot of quality information.

GLWN made a great case for exponential growth potential of the wind industry.

In 2008 the United States installed over 8000 MW of wind, making it the world leader in new installations in 2008 as well as cumulative capacity – over 25,170 MW of wind.

According to DOE, the U.S. possesses sufficient and affordable wind resources to obtain at least 20% of its electricity (305 GW) from wind by the year 2030.

So what’s happening in the wind industry right now? For 2009, installations are off. New orders have stalled due to the financial crisis. However, the stimulus funding has begun to help get things moving and the industry expects 2010 to be a recovery year and by 2011 the wind industry will be “going vertical” again.

During this period of slow down current OEMs are working to domesticate the supply chain and positioning themselves for the rebound. New plants are creating start-up supplier networks. Advance teams are searching for new suppliers before and during site selection for new North American facilities.

While manufacturers are trying to figure out how to enter the supply chain, OEMs are having their own issues as well. Many are short-staffed with new people. They have little time to develop new suppliers but they are trying to find and select the best partner. At the same time manufacturers are trying to figure out how to engage with the OEMs.

Currently more than half of the wind turbines installed in the U.S. are imported. However, that is poised to change.

Siemens, Nordex, EWT-Polymarin Composites and Vestas all have new plants under construction in the U.S. Wind Turbine OEMs operating in the U.S. now include General Electric, Gamesa, Clipper Windpower, Acciona, DeWind, AAER, Northern Power and Nordic Windpower. Additionally Alstrom and M. Torres from Spain, Fuhrlander, REpower and Kenersys from Germany, Mitsubishi from Japan and Suzlon from India are all looking for sites in North America for new plants.

• Long-term relationships with their suppliers. Siemens invests a lot of time and money to qualify suppliers.
• Low cost content – remember you are competing globally (however, transportation works in your favor).
• Flexible volume – up and down, can you meet annual productivity targets?
• Just in time delivery.
• Manufacturers need to bring technology, quality, logistics and price to be competitive.
• YOU have the INSIDE track from a geographic standpoint, transportation costs can be up to 20% of the turbine price.

In order to sustain growth in the wind industry, a solid federal Renewable Electricity Standard (RES) is a must! With the help of a federal RES, the wind industry could grow at double digits for the next 20 years.

So how do Kansas manufacturers and service providers take part in this explosive growth industry?

1. Start with the wind energy supply chain survey sponsored by the Kansas Department of Commerce.
2. Register your company with the Great Lakes Wind Network – it’s free right now.
3. Understand the supply chain structure.
4. Study OEM and Integrator web-sites.
5. Network the industry by talking to active suppliers and connecting with potential partner firms.
6. Develop a plan for wind which includes a marketing, manufacturing and growth strategy.

Business opportunities are HUGE. Challenges are SIGNIFICANT. GLWN tips for retooling to enter the supply chain:

• Getting good information.
• Thoughtful business plan.
• Making wise investments.
• The power of networks.

The Kansas Department of Commerce in partnership with the Greater Wichita Economic Development Coalition will be hosting a South Central Kansas Wind Supply Chain workshop on January 14, 2010 at the Wichita Hyatt from 1-5 p.m. Early bird registration is $35 per person.

— Dorothy Barnett, www.climateandenergy.org