14 DAY TRIAL // According to a recent report from Pike Research, the global market for small wind power systems is to get a considerable boost over the years to come, to the point that it will even double in size.
The report, titled ‘Small Wind Power’ claims the small wind power market will raise from $255 million (in 2010) to $64 million by 2015.
Moreover, the small wind system installed capacity additions is expected to nearly triple to 152 megawatts, and average installed prices of small wind systems will decline to just over $4,150 per kilowatt.
“The payback period for a small wind system can be 5 to 10 years in a region with adequate wind resources,” explained senior analyst Peter Asmus. “These economics provide a strong value proposition for a variety of commercial, industrial, and residential applications. Small wind turbines are currently more efficient than solar photovoltaic (PV) systems and, therefore, more economical from a levelized cost of energy perspective.”
According to Pike Research, this growth is being driven by increased government incentives and an expanded awareness of small wind technologies as an alternative source of electric power.
Other market drivers include the desire for customer and community ownership of power generation and the recognition that investment in small wind turbines can be an enduring source of economic development for the rural locales in which they are typically deployed.
In addition, considering the fact that business models in this sector use leasing programs and utility or third-party ownership, and as the technology develops further, Pike Research anticipates that the price of turbines will continue to fall.
However, Asmus says that despite their benefits, small wind turbines have not enjoyed the same level of innovation when it comes to unique financing and business models, particularly when compared with distributed solar energy.
The report explains that, in a region with adequate wind resources, the payback for a small wind system can be 5-10 years and does not require creative financing, like solar often does.