March 28 (Renewables Now) - Global wind turbine deals globally marked a 31% year-on-year increase in 2018, with Vestas Wind Systems A/S (CPH:VWS) taking the largest portion of orders, Wood Mackenzie Power & Renewables said in a new report.
According to the report “Global Wind Turbine Order Analysis: Q1 2019,” released on Wednesday, the Danish wind turbine manufacturer added 14.2 GW to its turbine order intake in the past year. The top five in the global ranking was dominated by western turbine manufacturers, among which Germany’s Nordex (ETR:NDX1) with 4.8 GW. Four Chinese companies, meanwhile, found their spots in the top-10 list.
Taking a look at the offshore wind sector, almost 8 GW of offshore orders were placed in the past year, exceeding the 2016 record-high level by almost 2 GW. Machines with capacities of 8 MW or higher accounted for over 40% of its total orders, with MHI Vestas Offshore Wind being responsible for 64% of the segment’s overall intake capacity.
"Demand for new turbine models ahead of policy expirations and targets has started to fill order books as OEMs (original equipment manufacturers) transition production lines, which has caused a modest uptick in pricing,” commented Wood Mackenzie Power & Renewables research director and report author Luke Lewandowski. He added that the industry experiences rising demand on innovation and customised equipment as transmission availability and certain permitting challenges enhance the complexity of areas suitable for wind development.
In the fourth quarter alone, the global wind turbine order intake increased by 20% in annual terms, reaching almost 18 GW, with the majority of regions booking an increase in firm order capacity. The US market, however, was one of the exceptions due to the reduced demand for safe harbour qualification investment under 60% tax credits.
Vestas was again leading the ranking in the fourth quarter by bagging 5.5 GW, while Nordex had 1.8 GW.