Analysts expect incentive schemes and growing public acceptance to boost sector from $609m in 2012
Incentive schemes and growing consumer awareness are expected to propel the global market, which stood at $609m in 2012. According to research by GlobalData, the market is poised to deliver a Compound Annual Growth Rate (CAGR) of 22 per cent over the years through to 2020.
The company's latest report also predicts the cumulative installed capacity of small wind turbines will increase from just over 728MW in 2012 to more than 4,644MW by 2020, at a CAGR of over 26 per cent.
China, the US, and the UK contributed to more than 80 per cent of global small-wind power installed capacity in 2012, with 266MW, 216MW, and 118MW, respectively. And while GlobalData expects China to continue to dominate the market during the remainder of the decade, the UK is expected to also deliver significant growth. The country is rated as the fastest growing small-wind power player in 2012, installing more than 50MW, while separate figures produced by trade body RenewableUK earlier this year valued the UK market at £105m.
GlobalData expects further growth in the UK as a result of financial incentives under the feed-in tariff regime and the streamlining of administrative procedures associated with small scale turbines.
However, Prasad Tanikella, GlobalData's senior analyst covering power, warned the market could face some obstacles in the form of zoning and permitting challenges.
"Poor permitting practices and unnecessary restrictive regulations are the major market barriers discouraging customer interest and investment," Tanikella said. "Streamlining the permitting process will be crucial towards ensuring that the growth of wind installation is not hampered by administrative issues."
Syndicated from Business Green