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U.S. companies take leading roles in the global wind energy industry

Cambridge, MA, March 26, 2004 - U.S. companies are taking an increasingly significant role in the global wind energy business according to new research by Emerging Energy Research. While some of the world's first major wind farms were erected in California in the 1980s, the wind energy industry has since the 1990s flourished primarily in Europe, where government policy has strongly supported development of renewable energy. This is changing rapidly however, as major U.S. companies such as FPL Energy and GE Wind have taken leading positions within the industry.

Over the last two years FPL Energy, a leading independent power producer in the U.S., has emerged as the world's largest owner and operator of wind farms, with just over 2,700 MW, or enough generating capacity to serve nearly 700,000 homes. A subsidiary of FPL Group and owner of power plants across the country, including the Seabrook nuclear power plant, FPL Energy operates wind power generating plants that represent nearly 7% of total global wind power in service, according to EER estimates. Other U.S. IPPs and utilities are getting into the business of building and operating wind farms, including PPM Energy of Oregon, and Mid-American Energy of Iowa.

U.S. companies have been even scarcer in the wind turbine manufacturing industry, with Danish and German suppliers having dominated for decades, but that too is changing rapidly with the entry of General Electric in 2002. According to EER, GE's wind subsidiary nearly tripled its volume since being acquired from the failing Enron, jumping in world ranking from fifth place in 2002 to a strong second place in 2003 behind only Vestas of Denmark.

"GE Wind and FPL Energy are indicative of the growing seriousness with which U.S. companies see the wind industry," says Godfrey Chua, Principal Analyst at EER, "These two companies are fast growing divisions within large multi-billion dollar organizations. Leveraging financial strength and technological know-how, the two companies have quickly emerged as leaders and lend a level of credibility and capability to the wind industry that simply did not exist before."

Ironically, one of the chief concerns of the wind energy industry today, says Chua, is the lack of consistent policy in the U.S., potentially the world's largest wind energy market, which has lead to stops and starts in wind energy development. As the leading players in the wind business descend on Chicago next week to debate the future of the industry at Global Windpower 2004, the biggest question being asked, says Chua, is when will Congress pass the Production Tax Credit, the renewable energy subsidy allowed to lapse at the end of 2003.

According to a recent study by Emerging Energy Research the U.S. added 1,687 MW of wind capacity in 2003, more than quadruple the 2002 level of 410 but just short of the industry record of 1,696 in 2001. In 2004, installations are expected to fall short again due to delays in passage of a new PTC. "Though project development activity continues with state-level portfolio standards taking an increasingly important role in driving the wind power market, plant cutovers remain at a standstill without a PTC," says Chua, "The economic implications are simply too significant and developers will delay cutover to ensure PTC eligibility."

GE Wind Energy nearly tripled its installations between 2002 and 2003 making the firm the fastest growing wind turbine supplier in 2003. The firm erected 1,503 MW of wind turbines, more than half of which were in the booming U.S. wind market. GE Wind also had significant installations in countries such as Germany, Spain, Japan and Ireland.

Top Five Wind Turbine Suppliers, 2003

FPL Energy emerged in 2003 as the undisputed leader in wind power generation. The firm is involved in over 3,000 MW of wind farms, having net ownership of 2,719 MW in assets. This is a substantial lead over second place Iberdrola of Spain, which controlled just over 1,900 MW of wind farms. All of FPL Energy's wind farms are in the U.S. Other fast growing operators include EHN and Endesa of Spain, international players Eurus Energy and Shell WindEnergy, as well as Scottish Power, the parent of PPM Energy.

Top Ten Wind Farm Owners, 2003

The Global WINDPOWER 2004 Conference and Exhibition is being held on March 28-31 in Chicago, IL. The event is organized by the American Wind Energy Association, a U.S. trade group supporting the wind energy industry. For more information please see www.awea.org.

Emerging Energy Research LLC, a Cambridge MA-based research and advisory company specializing in new energy trends recently published a major study on the global wind industry, Global Wind Energy Markets and Strategies, 2002-2010. The study is part of the Global Wind Energy Advisory Service, a continuous information service focused on the wind industry value chain. For more information please contact Godfrey Chua, telephone: 617-551-8482, email: gchua@emerging-energy.com, or visit our website: www.emerging-energy.com.