Windpower Becomes the Law in Ohio
An investment in both alternative energy and manufacturing opportunities…that's what the Ohio legislature and Governor Ted Strickland have created as a result of a new energy bill signed into law in late April which requires Ohio utilities to begin purchasing electricity from renewable energy starting in 2009. Wind energy is poised to gain the lion's share of that opportunity. The legislation is known in the industry as a Renewable Portfolio Standard (RPS), and with its passage Ohio joins Pennsylvania, Illinois, Minnesota, Iowa, and Wisconsin as nearby states making a ready market for the manufacture and installation of wind turbines.
For manufacturers, here's what's important:
- The Ohio legislation requires utilities to buy an increasing amount of renewable energy each year up to 2025. By some estimates, perhaps 7,000 MW of wind turbines could be installed to meet this requirement by 2024, which would imply as many as 3,500 new turbines and capital expenditures of up to $14 billion dollars, of which roughly $9 billion will be for components.
- This enhances the region's ability to attract new wind turbine assembly operations. Up until now, most expansions have been located in the Great Plains states. Given the mandate for new local wind parks in the Midwest, however, it is expected that many, if not all, of the six major OEMs not yet assembling in the US will more carefully consider locations in the Great Lakes region. Ohio's success leaves only Michigan and Indiana as Great Lakes states without an RPS. Michigan Governor Jennifer Granholm has vowed to pass an RPS this year, and a bill is currently making its way through the legislature.
The Great Lakes Wind Network thanks each of you who contacted your representatives in Columbus to urge passage of this important law.
Houston Hosts Windpower 2008 in June
Time is running out if you haven't yet made your reservation for the American Wind Energy Association (AWEA) Windpower 2008 show scheduled for June 1-4 in Houston. This event will feature four days of conferences and over 7,500 exhibitors, making it the world's largest wind event this year.
For manufacturers, Windpower 2008 offers an excellent view of the breadth of the global wind industry. This includes displays from all the major utility scale (>1 MW) OEMs, most commercial grade (100 KW-1 MW) OEMs, plus many small wind (<100 KW) wind turbine manufacturers. Also exhibiting will be numerous first-tier suppliers for key components, such as gearboxes, blades, and towers. Like the wind turbine manufacturers, each of these possesses their own supply chain challenges and may offer opportunities for your firm.
The Great Lakes Wind Network will be present at Windpower 2008. We've been invited by the State of Ohio to participate in their exhibit, so please stop by and see us in Booth 3033, across from the German Pavilion. To learn more about the conferences, what firms will be attending, and to make reservations, visit the Windpower Expo website.
Expanding the Supply Chain: Next Steps Underway
For component manufacturers to expand in the wind industry, three bottlenecks need to be addressed, according to a survey of 80 companies by the Great Lakes Wind Network. Tops on the list was 'connecting with potential customers,' followed by 'finding our best fit into the wind industry,' and 'understanding wind-industry requirements for my company.' The survey was conducted of manufacturers attending the American Wind Energy Association's Supply Chain Conference in Iowa in late April.
With the wind industry expanding at nearly 50% per year, capacity expansions by existing component manufacturers are needed but won't be enough to keep pace with growth forecasts for the US market. This opens the door for manufacturers new to the industry to convert existing capabilities to join in the market, but the survey results indicate that this process can be a difficult one. That's especially true when wind turbine generator supply chain managers find themselves swamped with the requirements of managing their existing supplier base.
The Great Lakes Wind Network has begun a special study on behalf of the Ohio Department of Development to help the State of Ohio to resolve this impasse. We are now interviewing wind turbine OEMs to find their biggest component shortfalls and the associated manufacturing capabilities in shortest supply. Findings will be categorized for component manufacturers by industry, such as foundries, machine shops, fabricators, etc. The results, when completed, can provide manufacturers with a clearer picture of their fit within the industry, as well as the kind of investments needed to participate in its growth.
For more information about the Great Lakes Wind Network, contact Ed Weston at 216.588.1440, ext 125.
For more information about the Great Lakes Wind Network, contact
Ed Weston, Director
216.588.1440, ext 125
The Great Lakes Wind Network is an initiative of WIRE-Net and is funded in part by grants from the Kent H. Smith Charitable Trust, and The Cleveland Foundation