State of the industry
It is generally accepted that the earth’s fossil fuels are limited resources and that globally their production will peak in the coming years, as it did for oil production in the US in the 1960s and the North Sea in the 1990s, and prices will continue to rise. Coupled to the environmental impact of burning fossil fuels and the security of energy supply it is evident that renewable energies will have to contribute more to the world’s ever rising demand for energy.
Wind power systems have developed to be prominent suppliers of renewable electricity. Since the 1980s installed power has increased dramatically as prices have fallen contrasted to the rise in oil and gas. Today, production is barely able to keep up with demand and manufacturing has reached the state of a high-tech industry.
To date, most R&D dollars have gone into industrial or utility sized wind turbines. This investment has allowed large scale wind farms to compete with conventional power producers to energize the grid. In 2007 wind turbines generated more than 1% of global electricity. Statistics released by the European Wind Energy Association (EWEA) show that in 2008, 43% of all new electricity generating capacity built in the European Union was wind.
| Country | Capacity installed (MW) | Added capacity 2008 | % total electricity generated |
| USA | 25,170 | 8,351 | 1% |
| Germany | 23,902 | 1,655 | 7% |
| Spain | 16,740 | 1,595 | 11% |
| China | 12,210 | 6,298 | 1% |
| India | 9,587 | 1,737 | 2% |
| Italy | 3,736 | 1,010 | 2% |
| France | 3,404 | 949 | 2% |
| United Kingdom | 3,288 | 899 | 2% |
| Denmark | 3,160 | 35 | 20% |
| Portugal | 2,862 | 732 | 11% |
| Canada | 2,369 | 523 | 1% |
The same is not true for small commercial and residential wind turbines. Although, small electricity generating wind turbines have been in use since the 1920s or 1930s, they have not proliferated as their larger industrial counterparts have done. In fact many smaller turbines are based on older inefficient designs that do not take into account aesthetics or ease of installation. Combined with the advent of modern power electronics, today’s turbines can now be connected to the grid with the aid of a frequency converter, whereas in the past, a battery was generally used for storage. Combined with smart, efficient, inexpensive designs; small wind turbines are poised to become a substantial source of energy. As can be seen in the figure below the growth in the U.S. over the last few years has been impressive. The UK market has also experienced an exponential growth over the last several years, driven by higher energy prices than in North America and a progressively aware consumer base. In 2008 an estimated £33M worth of small wind turbines will be installed and an additional £9M exported. The UK has experienced an annual growth rate of over 80% based on units installed and over 100% based on revenues between 2005 to 2008, with similar growth rates expected over the next decade.
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| Growth of US small wind market |




