Wednesday, January 30, 2013

(BN) German Wind Market May Defy Global Slump to Grow 43% This Year

(Bloomberg ) German wind-turbine installation may rise as much as 43 percent in 2013 as the home of Siemens AG (SIE) and Nordex SE (NDX1) defies a global slump, according to an industry lobby.

Developers may add 3 gigawatts to 3.5 gigawatts after 2.44 gigawatts in 2012 as on and offshore projects grow, said Sylvia Pilarsky-Grosch, vice president for the BWE lobby.

"We expect significant growth that could be even bigger depending on the development in the offshore sector," Thorsten Herdan, head of the manufacturers' group VDMA Power Systems, said at the same press conference in Berlin.

Germany is investing in clean energy as it phases-out nuclear power. It plans to build offshore wind farms covering an area as much as six times the size of New York City and raise renewable-energy production to about 40 percent of total power output by the end of the decade, from about 25 percent now.

Global installations are expected to fall about 9 percent to 42 gigawatts, led by the U.S., weighing on margins of the producers, who have about 80 gigawatts of capacity, Herdan said.

While 1.7 gigawatts of offshore wind turbines are being built in the German North Sea, new projects aren't developing because delays in connecting the machines to the power grid have unsettled investors, Herdan said. That could lead to a "gloomy" period for suppliers from 2015, he said.

Germany had 33.33 gigawatts of wind turbines installed by Dec. 31, including 0.28 gigawatts offshore, the BWE lobby said.

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