Ports-to-Plains Energy Summit Omni Interlocken Resort Broomfield, CO April 7, 2011 The Ports-to-Plains Corridor runs through the middle of North America’s wind corridor. Learn about the issues affecting this growing industry throughout the region.

1. Opportunities in the Wind
Industry Supply Chain –
A National Perspective
April 7, 2011
Ports-to-Plains Energy Summit
Denver, CO
Tom Maves
American Wind Energy Association

2. What is AWEA ?
American Wind Energy Association
www.awea.org
National trade association for the wind
energy industry
Legislative / Lobbying
Education & Outreach
Member Services
Currently >2500 business, utility,
academic, and non-profit members

3. Status of the Wind
Energy Industry

4. Wind Energy Industry Status at End of 2010
The U.S. wind energy industry installed 5,115
MW in 2010.
The fourth quarter of 2010 saw 3,195 MW
installed.
Capacity nationwide now totals 40,180 MW,
an increase in capacity of 15% over the start
of 2010.
Over 5,600 MW are under construction
entering 2011.
Over 400 manufacturing facilities in U.S.,
producing 50% of turbine components.

5. U.S. Wind Project Additions, by Year
The U.S. wind industry installed 3,195 MW of
wind power in the fourth quarter of 2010.
That was below the 4,113 MW installed in the
same period in 2009, but an improvement over
the third quarter of 2010, when only 670 MW
Wind Capacity (MW)
were installed.
The U.S. finished the year with a total of 5,115
MW of new wind power. U.S. cumulative
capacity now stands at 40,180 MW.
American Wind Energy Association * 4th Quarter 2010 Market Report

6. Wind Project Installations, by Quarter
American Wind Energy Association * 4th Quarter 2010 Market Report

7. Operating Wind Projects, by State
American Wind Energy Association * 4th Quarter 2010 Market Report

8. Operating Wind Projects, by State
American Wind Energy Association * 4th Quarter 2010 Market Report

9. Installation & Construction Trends
American Wind Energy Association * 4th Quarter 2010 Market Report

10. Wind is an Affordable Form of New Energy

11. Over 400 U.S. Manufacturing Plants Serve the
Wind Industry Today

12. AWEA Priorities for 2011
• Long term PTC Extension
• Wildlife / Siting issues
• Transmission policies and legislation
• State / Regional issues
• Renewable Energy Standard at federal level

13. 37 Other Nations Have Enacted
Long-Term Renewable Policy
A
A

14. Lack of Stable Market Signals Creates a
Boom-Bust Cycle for Wind

15. Fossil Fuels Enjoy Permanent Incentives
5x Those of Renewables

16. Federal Tax Incentives
• Production tax credit for large wind available
through 2012
• Ability to claim 30% investment credit, and
receive cash grant in its place through
2011
• 30% investment tax credit for small wind
• 30% tax credit for expanding, building
manufacturing facilities

17. Federal RES Would Yield Significant Job Creation
1. Data included direct, indirect, and induced labor.
2. Results are for a 25% RES by 2025 compared to no national RES.
3. 1 Job is defined as 1 Full Time Equivalent (FTE).
Source: Navigant Consulting

18. AWEA Annual Market Report
● Annual Report to be issued on April 7th in
conjunction with Finance Workshop in NYC
● Will be available at www.awea.org

19. May 22 – 25, 2011
Anaheim Convention Center
Anaheim, CA

20. Wind Turbine Supply
Chain – Overview

22. DISTRIBUTION OF TURBINES INSTALLED IN 2009
BY CAPACITY
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

23. AVERAGE WIND TURBINE CAPACITY
Over 5,600 turbines
were installed in
2009, bringing the
total to over 33,000
turbines.
The average
capacity for new
turbines added in
2009 was 1.75 MW,
up from 1.67 MW in
2008.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

24. Wind Turbine Size

25. Basic Supply Chain
Raw Major
Component Turbine
Materials Component
Suppliers Manufacturers
Suppliers Suppliers

26. Wind Turbine Major Components
Hub Nacelle
Blade
Tower

27. Inside a Wind Turbine Nacelle
Tower

28. Turbine Components
There are over 8000 components in a turbine, including:
Towers: Nacelle: Foundation:
● Towers ● Nacelle Cover ● Rebar
● Ladders ● Nacelle Base ● Concrete
● Lifts ● Heat exchanger ● Casings
● Controllers
Rotor: ● Generator Other:
● Hub ● Power ● Transformers
● Nose Cone Electronics ● Bolts/Fasteners
● Blades ● Lubricants ● Wire
● - Composites ● Filtration ● Paints and Coatings
● - Blade Core ● Insulation ● Lighting
● Pitch ● Gearbox ● Lightning Protection
Mechanisms ● Pump ● Steel Working/Machining
● Drives ● Drivetrain ● Communication Devices
● Brakes ● Ceramics ● Control & Condition Monitoring Equipment
● Rotary Union ● Shaft ● Electrical Interface & Electrical Connection
● Batteries
● Bearings
● Brakes

29. SIZES AND MATERIAL USE FOR
UTILITY-SCALE TURBINES INSTALLED IN 2009
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

30. Wind Turbine Supply
Chain – Major
Components

31. TOWERS
TOWERS
Credit : Carell Corp.

32. TOWERS – Market Overview
● The tower sector was the first to develop a strong
domestic supply base due to logistical issues of
transporting towers. Most towers installed in the
US are domestically manufactured.
● Towers are typically 2/3 of the weight of 200 to
400 ton utility-scale turbines, and are almost
entirely steel
● Number of facilities in 2004: 6
● Number of facilities in 2009: 20
● Additional announced facilities: 8

33. MAJOR FACILITY LOCATIONS
TOWERS – Mfg Locations

34. TOWERS
BLADES

35. BLADES – Market Overview
● The blade sector was the second to develop a
strong domestic supply base due to logistical
issues of transporting blades. Most blades
installed in the US are domestically manufactured.
● Number of facilities in 2004: 4
● Number of facilities in 2009: 9
● Additional announced facilities: 3

36. MAJOR FACILITY LOCATIONS
BLADES – Mfg Locations

37. TOWERS
DRIVE-TRAIN

38. DRIVE-TRAIN – Market Overview
● The drive train contains multiple value-added areas
● The U.S. is still in the process of developing
manufacturing capacity for drive train components
● Domestic drive train sourcing is driven by the presence
of nacelle assembly facilities.
Nacelle assembly facilities:
● Number of facilities in 2004: 3 (all GE)
● Number of facilities in 2009: 8
● Additional announced facilities: 8

39. MAJOR FACILITY LOCATIONS
TURBINE ASSEMBLY – Locations

40. TOWERS
ELECTRICAL COMPONENTS

41. ELECTRICAL COMPONENTS
● Types of Electrical Components:
● Slip Rings ● SCADA Systems
● Converters ● Lightning Protection
● Transformers ● Communication Devices
● Electrical Wire & Cable ● Batteries
● Fiber Optics ● Electrical Interface and
● Control Systems & Connection
Condition Monitoring ● Switchgear
● Cable Accessories ● Grid Connection Equipment
● Motors

42. ELECTRICAL – Market Overview
● For many electrical commodities – U.S. in nascent stage
of developing manufacturing capacity
● High OEM Visibility and Focus
• High impact on reliability / total cost of ownership
• Highly specified - heavily influenced by European
standards.
• May be proprietary technology
• Safety implications
● Driving sourcing from current overseas suppliers
● Migration is in progress

43. Manufacturing
Facilities and Jobs

44. GROWTH OF OEMS IN U.S. MARKET
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

45. MANUFACTURERS’ SHARE OF 2009 INSTALLATIONS IN U.S.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

46. NEW WIND MANUFACTURING FACILITIES IN 2009
While 2009 was a strong year for announced manufacturing facilities, it was
down from 2008. In 2008, 58 facilities came online, were announced or
expanded, compared to 39 in 2009 and 24 in 2007.
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

47. GROWTH OF DOMESTIC CONTENT
There has been a dramatic shift towards domestic
2008
manufacturing for wind turbine components
2005 2009
Domestically Mfg Components
Domestically Mfg Components
Inported Components
Inported Components
~25% domestic components
~50% domestic components
~2,500 MW installed
~1,500 turbines installed ~10,000 MW installed
~5,600 turbines installed
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

48. TOTAL U.S. WIND INDUSTRY EMPLOYMENT
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

49. WIND INDUSTRY JOBS BY STATE
Source: American Wind Energy Association U.S. Wind Industry Annual Market Report – Year Ending 2009

50. Supply Chain
Opportunities –
Resources and
Services

51. Manufacturing Working Group
● Recently formed task forces
• Incentives
• Export Promotion
• Qualifications & Specifications
• R&D and Commercialization
● AWEA Manufacturing Working Group open to any
AWEA business member in good standing who has
US-based manufacturing and is a current supplier
for the industry.
● Contact AWEA for more information at:
jisaacs@awea.org or tmaves@awea.org

52. Transportation & Logistics WG
● The mission of the TLWG is to eliminate transportation
related constraints and standardize policy and
procedures between states to enable the growth of the
U.S. wind industry
● Seven priority issues being pursued
● The TLWG is open to any AWEA business member in
good standing who is involved in the transport and
logistics associated with moving, storing and
delivering wind turbines and components
● Co-chaired by Vikash Patel, GE Energy Logistics and
Nikhil Amin, Trinity Logistics
● Contact: Tom Maves, tmaves@awea.org

53. Operations & Maintenace WG
● This working group is open to any AWEA
business member in good standing who is
involved in the O&M aspects of the industry
● Co-chairs recently established, currently
forming Advisory Group
● Currently prioritizing member issues and
forming strategies for solutions
● Contact: John Dunlop, jdunlop@awea.org

54. GLWN: Global Wind Network
● Leading Supply Chain Advisory Group
● 1500 Manufacturers and Suppliers across
North America
● Component Head-hunters for OEMs
● Resource to Manufacturers, Service Suppliers
● Mission: Increase the Domestic Content of
US Wind Turbines
● Get Connected: GIS Supply Chain Map
www.glwn.org

55. Questions ?
Tom Maves
www.awea.org | 614-670-8961 | tmaves@awea.org
WINDPOWER 2011 – Anaheim, CA – May 22-25, 2011
www.windpowerexpo.org