Development Of Wind Industry Research Articles

The impact of government subsidies on firms’ innovation inputs and outputs in the early stage of the wind industry development

Government subsidies are necessary to stimulate firms’ private investments and innovation activities. Although many studies have examined the relationship between government subsidies and innovations in developed countries, only a few studies focus on emerging industries in developing countries. This study aims at estimating the impact of government subsidies on firms’ investments and innovation in the early stage of the Chinese wind industry using propensity score matching. The results show that government subsidies have no statistically significant impacts on firms’ innovation outcomes and R&D investments in the early stage of the industry, while both estimates are positive. These policy outcomes might result from the non-R&D use of government subsidies, the uncertainty of market demand, and the insufficient amount and the uncertainty of the durability of government subsidies in 2007. This study provides implications for the design of government subsidy policies to build domestic renewable energy industries in the early development stage.

The hundred years of wind industry development in Russia. Part 2

The hundred years of wind industry development in Russia. Part 2

The Hundred Years of Wind Industry Development in Russia. Part 1

The Hundred Years of Wind Industry Development in Russia. Part 1

Smoothing control of wind power fluctuations with battery energy storage system of electric vehicles

With the rapid development of wind industry, its integration causes inevitable and rapid power fluctuations in the power grid. To promote the integration of wind power and investigate the energy storage capability of electric vehicles (EVs), a smoothing control strategy is proposed to smooth the wind power fluctuations considering the battery energy storage system of EVs (EESS). Based on a proposed maximum operation area of an individual EV considering its traveling behaviors and traveling comfort level, the response parameters are defined to describe the response characteristics of the EV aggregator (EVA). The EESS can operate as an energy storage system composed of several EVAs with different response parameters. A smoothing control strategy is then developed to smooth the wind power fluctuations with the EESS. Considering the power fluctuation rate and the response capability of the EESS, the required power change of each EVA in the EESS is determined in the smoothing control. Then the required power output change is allocated to individual EVs in the EVA with the developed SOC-adaptive method and the power output limits constrained by the maximum operation area of each EV. Comparative results are provided to validate the effectiveness of the proposed smoothing control strategy. The EESS is able to smooth the wind power fluctuations, and the power output limits and the traveling comfort levels of individual EVs are ensured with the SOC-adaptive method and the constraints from the maximum operation areas.

Wind Turbine Shutdowns and Upgrades in Denmark: Timing Decisions and the Impact of Government Policy

For policymakers, an important long-run question related to the development of renewable industries is how government policies affect decisions regarding the scrapping or upgrading of existing assets. This paper develops a dynamic structural econometric model of wind turbine owners’ decisions about whether and when to add new turbines to a pre-existing stock, scrap an existing turbine, or replace old turbines with newer versions (i.e., upgrade). We apply our model to owner-level panel data for Denmark over the period 1980-2011 to estimate the underlying profit structure for small wind producers (who constitute the vast majority of turbine owners in the Danish wind industry during this time period), and evaluate the impact of technology and government policy on wind industry development. Our structural econometric model explicitly takes into account the dynamics and interdependence of shutdown and upgrade decisions, and generates parameter estimates with direct economic interpretations. Results from the model indicate that the growth and development of the Danish wind industry were driven primarily by government policies as opposed to technological improvements. We use the parameter estimates to simulate counterfactual policy scenarios in order to analyze the relative effectiveness and cost-effectiveness of the Danish feed-in-tar-iff and replacement certificate programs. Results show that both of these policies significantly impacted the timing of shutdown and upgrade decisions made by small wind producers and accelerated the development of the wind industry in Denmark. We also find that when compared with the feed-in-tariff; a declining feed-in-tariff; and the replacement certificate program and the feed-in-tariff combined, the replacement certificate program was the most cost-effective policy both for increasing payoffs of small wind producers and also for decreasing carbon emissions.

Critical factors influencing wind power industry: A diamond model based study of India

The energy needs of India have increased many folds in recent years due to industrialization and ever-increasing population. Wind energy offers excellent opportunities in fulfilling the energy needs of the country. Being renewable, it has enormous resource potential. Since the last decade, the wind energy sector has progressed very quickly. India ranks 4th in the world in terms of installed wind capacity. The cumulative installed capacity has reached 35,288 MW, grabbing 6% global share. Meanwhile, various factors are affecting the development of the wind power industry. This paper aims to identify and analyze the critical factors that are significantly affecting the development and competitiveness of the Indian wind industry. For this purpose, we have adopted the Diamond model approach. After careful analysis, we have found that these factors are: demand condition, factor condition, chance, related and support industry, firm strategy, structure, rivalry, and government. All the factors identified in this model are influencing the wind industry’s competitiveness from a different angle. Thus, these factors should be strengthened for the long-term development of the wind industry. Research findings reveal the present status, challenges, and future projections of the wind power industry. Essential policy recommendations have been offered for the sustainable development of this sector. Government and stakeholders can take benefit from this research by understanding the dynamic relationship among all the factors influencing the development of the wind power industry and make procurement strategies accordingly.

Wind Turbine Shutdowns and Upgrades in Denmark: Timing Decisions and the Impact of Government Policy

For policymakers, an important long-run question related to the development of renewable industries is how government policies affect decisions regarding the scrapping or upgrading of existing assets. This paper develops a dynamic structural econometric model of wind turbine owners' decisions about whether and when to add new turbines to a pre-existing stock, scrap an existing turbine, or replace old turbines with newer versions (i.e., upgrade). We apply our model to owner-level panel data for Denmark over the period 1980-2011 to estimate the underlying profit structure for small wind producers (who constitute the vast majority of turbine owners in the Danish wind industry during this time period), and evaluate the impact of technology and government policy on wind industry development. Our structural econometric model explicitly takes into account the dynamics and interdependence of shutdown and upgrade decisions, and generates parameter estimates with direct economic interpretations. Results from the model indicate that the growth and development of the Danish wind industry were driven primarily by government policies as opposed to technological improvements. We use the parameter estimates to simulate counterfactual policy scenarios in order to analyze the relative effectiveness and cost-effectiveness of the Danish feed-in-tariff and replacement certificate programs. Results show that both of these policies significantly impacted the timing of shutdown and upgrade decisions made by small wind producers and accelerated the development of the wind industry in Denmark. We also find that when compared with the feed-in-tariff; a declining feed-in-tariff; and the replacement certificate program and the feed-in-tariff combined, the replacement certificate program was the most cost-effective policy both for increasing payoffs of small wind producers and also for decreasing carbon emissions.

Ambition and ambiguity: Expectations and imaginaries developing offshore wind in China

This paper investigates how future-orientation generates action in China's offshore wind industry. We might expect that, with an authoritarian government, China would be able to push through policies with ease. Using the sociology of expectations and sociotechnical imaginaries, this paper shows how the future is an important resource for not only coordinating government and industry actors but also calibrating and negotiating expectations of what can be achieved. On the one hand, sociotechnical imaginaries – as exemplified by government development targets – appear to spur action; on the other hand, local expectations modify the intended development targets. The paper describes a strategic waiting game in which the government is obscure about intentions and in which the industry, wanting a piece of a promising cake, is eager to get a head start. This paper finds that ambitiousness about the future, but ambiguity in implementation, is a strategy successfully employed by the government to ensure change. The paper shows how state intervention is productively managed so that it neither stifles nor exclusively drives offshore wind industry development in China.

Assessing offshore wind potential

Quantifying wind potential is a pivotal initial step in developing and articulating a state’s policies and strategies for offshore wind industry development. This is particularly important in the Great Lakes States where lessons from other offshore environments are not directly applicable. This paper presents the framework developed for conducting a preliminary assessment of offshore wind potential. Information on lake bathymetry and wind resources were combined in simulating alternative scenarios of technically feasible turbine construction depths and distance concerns by stakeholders. These yielded estimates of developable offshore wind areas and potential power generation. While concerns about the visibility of turbines from shore reduce the power that can be generated, engineering solutions that increase the depths at which turbines can be sited increase such potential power output. This paper discusses the costs associated with technical limitations on depth and the social costs related to public sentiments about distance from the shoreline, as well as the possible tradeoffs. The results point to a very large untapped energy resource in the Michigan’s Great Lakes, large enough to prompt policy action from the state government.

On developing a prospecting tool for wind industry and policy decision support

This paper presents the rudiments of a Wind Prospecting Tool designed to inform private and public decision makers involved in wind industry development in reducing transaction costs associated with identifying areas of mutual focus within a state. The multiple layer decision support framework has proven to be valuable to industry, state government and local decision makers. Information on wind resources, land availability, potential land costs, potential NIMBYism concerns and economic development potential were integrated to develop a framework for decision support. The paper also highlights implications for decision support research and the role of higher education in providing anticipatory science to enhance private and public choices in economic development.

Effects of Renewable Energy Policies on Wind Industry Development in the US

ABSTRACT To spur on renewable energy development, some US states have adopted Renewable Portfolio Standards (RPS) and related policies. Previous studies have examined the factors that lead to such policy adoption, but offer limited empirical evidence on the effects on renewable energy development. We intend to close this gap through empirical analysis. Results suggest that RPS adoption and the stringency of its inherent characteristics were dominant in spurring wind energy development, and that state wind energy potential, economic and market characteristics, energy portfolio, and political structure had significant impacts. Thus, policy and politics matter more than nature in driving wind energy deployment.

Distributed small-scale wind in New Zealand: Advantages, barriers and policy support instruments

If future climate change goals being negotiated internationally are to have any chance of being achieved, developed countries need to undertake a major transition in their energy systems. This will require a rapid expansion of renewable energy generation, including wind electricity. Wind energy in New Zealand is commercially viable in many cases, yet opportunities for its exploitation are far from fully utilised. Many communities are showing resistance to wind farm developments, since large wind farms are often seen as intrusive. Building wind farms on a small scale may be a useful way of overcoming this problem. This study examines the pattern of recent wind industry development in New Zealand. It is argued that two key characteristics have emerged that are limiting the potential development of the industry: a trend towards large scale, leading to increased local opposition; and a small number of investors. Research methods include a review of international and local literature, and a rural mail survey questionnaire, with 338 respondents. We provide survey evidence that small wind farms, and community ownership of them, may be attractive to local communities, and that this point of advantage is helpful for the rapid expansion of wind generation in New Zealand.