The Wind Energy Industry
First, let’s get a quick rundown of the growth of the domestic and international wind markets out of the way.
Here’s the chart for wind power capacity growth by year:
As you can see, global installed capacity for wind energy has grown 482% over the last seven years, from 14,604 MW in 2000 to 84,934 MW in 2007.
Broken down further, the international wind industry has a compounded annual growth rate (CAGR or year-over-year) of 28.6%, which is impressive, to say the least.
But the past performance of the wind energy stocks is going to do little to help the future performance of your portfolio, apart from establishing an historic trend and highlighting what you’ve been missing.
So here’s the global wind energy installed capacity forecast, going out to 2012:
This data reveals that the industry will grow 215% between 2007 and 2012, from 84,934 MW to 267,837 MW. That’s a CAGR of 25.8%
Now this is information that can give your portfolio a boost. In an industry that’s doubling in size every four years or less, there are surely more than a few companies worthy of investment operating within it.
The only thing left to do is to actively seek out the best ones.
To start the search, it’s probably worth taking a look at the countries currently boasting the highest year-over-year growth in the wind industry. So here they are, along with their respective annual growth rates, as provided by GlobalData:
- Turkey, 95.4%
- Mexico, 84.7%
- Brazil, 61%
- China, 54%
- Poland, 50.9%
Of course, those are the fastest growing markets. According to GlobalData, the largest markets by megawatt capacity are:
- China, 51,200 MW
- U.S, 45,454 MW
- Spain, 36,715 MW
- Germany, 35,829 MW
- India, 25,935 MW
The only thing left to do is single out the largest operators in those areas, invest, and reap the profits.
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