Wind Turbine Tower Market
Favorable Government Policies and Initiatives for Wind Energy is Boosting the Wind Turbine Tower Market Growth
The Inflation Reduction Act received recognition as law in 2022. It extended and increased the tax credits for wind energy projects that begin construction before January 1, 2025. The renewable electricity production tax credits (PTC) allow developers and owners of wind energy facilities to receive a federal income tax credit on every kilowatt-hour of electricity supplied to the power grid yearly for ten years after a facility is active. The IRA extended the PTC through 2024, which earlier expired for wind at the end of 2021. Wind projects that are active after 2024 are eligible for a technology-neutral clean energy PTC. Initiating in 2025, the IRA aimed at converting energy tax credits into emissions-driven, technology-neutral tax credits.
Furthermore, the IRA presented new advanced manufacturing production credits for firms that domestically produce and market clean energy equipment in the US between December 31, 2022, and December 31, 2032. For wind turbine components, the credit amount varies depending on the type of component, and that is calculated by the rated capacity of the turbine in watts. For wind turbine towers, it is 3 cents times the rated capacity. In 2023, the French government plans to invest EUR 500 million (US$ 526.43 million) in a year as a part of the tax credits to increase the development of renewable energy resources like wind and solar. In India, solar, wind, hydro, and biomass projects are qualified for tax exclusion under Section 80-IA and Accelerated Depreciation policies. In January 2022, the People’s Bank of China (PBOC) announced providing low-cost loans to fund decarbonization activities. Also, the current policy initiatives of Beijing are focusing on tax advantage and low-interest loans to companies developing low-carbon projects, power market reforms, and grid enhancement. All such government initiatives are driving the wind turbine tower market growth.
Furthermore, the German government is planning to introduce a bill to accelerate wind energy expansion. In April 2022, the German government announced its plan to deploy offshore wind targets of more than 10 GW per year from 2025. Through these initiatives, renewable energy sources are expected to cover 80% of the country’s electricity demand by 2030. In addition, the European Union is working on framing the incentives for offshore wind projects. This will increase the adoption and construction of offshore wind turbines in the region, raising the demand for wind turbine components in the wind turbine tower market.
Thus, growing government focus on renewable energy generation and increasing initiatives in the form of funding and favorable policies are acting as major drivers for the wind turbine tower market.
Wind Turbine Tower Market Analysis: Deployment Type Overview
Based on deployment type, the wind turbine tower market is bifurcated into onshore and offshore. In 2022, the onshore segment accounted for a larger market share. Construction and operation of onshore wind farms produce substantially less gaseous emissions than other energy sources. Onshore wind farms can be assembled in months and are moderately cost-effective to maintain in comparison with offshore wind farms. Offshore wind farms are based in the water bodies, generally at sea. The maintenance cost of offshore wind farms is relatively higher than onshore. However, offshore wind farms have gained momentum with a growing focus on renewables as a sustainable alternative for power generation to mitigate carbon emissions or greenhouse gas emissions.
Wind Turbine Tower Market: Competitive Landscape and Key Developments
Vestas Wind Systems AS, KGW, DONGKUKS&C, CS Wind Corporation, Siemens Gamesa, Valmont Industries Inc, Broadwind Energy, Arcosa Wind Towers Inc, Marmen Inc, and Nordex Group are among the key wind turbine tower market players profiled during this study. In addition, several other important wind turbine tower market players have been studied and analyzed during the study to get a holistic view of the wind turbine tower market and its ecosystem.
