The Blog - Wind energy market analysis

Posted 11/02/2015

Richard Heap


10 Predictions For Wind Investment In 2015

 Can you believe it's already February and we're hurtling towards Spring? 

Before you make any major wind investment decisions, let’s take a quick look at our ten predictions for the trends that will shape wind investment this year:


1. No favours from the world economy

Slowing growth in China and slow recoveries in Europe and the US could push the world economy back into recession. Meanwhile, low oil prices will increase pressure on the renewables sector to demonstrate value for money. Budgets among wind companies will remain under pressure throughout 2015.


2. Consolidation among manufacturers

There will be more consolidation in this sector as firms decide it is easier to ride out the tough economy by pooling resources.


3. Financial inventiveness

Developers will have to be creative to fund projects, but the funding community will be open to this as it gains confidence in wind as an asset class.


4. Europe continues to go slow

Growth will be slow and steady, but we expect to see increasing activity in the secondary market as subsidies are cut back for new schemes.


5. UK election uncertainty

No respite for UK onshore wind after May’s election, where another coalition led by the wind-sceptic Conservatives is the most likely outcome.


6. Storage to silence critics

Developers and investors will seek to ease concerns about wind farms’unreliability by integrating more energy storage technology into schemes.


7. Offshore breakthrough outside Europe

Asian nations are talking a good game on wind, and in 2015 we expect to see the first offshore project outside of Europe go live —although the current uncertainty over Cape Wind is clearly a big blow to the US.


8. Cuts in the US

Manufacturers and developers will be forced to cut jobs after another short-term extension of the wind production tax credit (PTC) gives little certainty.


9. Asian manufacturers target world

Asian manufacturers and developers will look to grow outside of domestic markets to protect themselves from an Asian slowdown.


10. MENA rises

Africa and the Middle East will become exciting new markets, led by schemes like Kenya’s 310MW Lake Turkana and investors like Abu Dhabi’s Masdar.


Agree? Disagree? Anything we’ve missed? Let us know! Or read our Wind Finance 2015 report for more insight.

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