Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms

This article examines the importance of national and sub-national policies in supporting the development of successful global wind turbine manufacturing companies. We explore the motivations behind establishing a local wind power industry, and the paths that different countries have taken to develop...

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Bibliographic Details
Published in:Energy policy 2007-03, Vol.35 (3), p.1844-1857
Main Authors: Lewis, Joanna I., Wiser, Ryan H.
Format: Article
Language:English
Subjects:
Alternative energy sources
Applied sciences
Comparative analysis
Economic data
Economics
Energy
Energy economics
Energy policy
Exact sciences and technology
Gas turbines
General aspects
General, economic and professional studies
Industrial policy
Manufacturing
Natural energy
Renewable energy policy
Renewable energy sources
Renewable resources
Studies
Technology transfer
Wind energy
Wind power
Wind power technology transfer
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Summary:This article examines the importance of national and sub-national policies in supporting the development of successful global wind turbine manufacturing companies. We explore the motivations behind establishing a local wind power industry, and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders. This is done through a cross-country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries. We find that in many instances there is a clear relationship between a manufacturer's success in its home country market and its eventual success in the global wind power market. Whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market, which in turn will be influenced by the annual size and stability of that market. Consequently, policies that support a sizable, stable market for wind power, in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally, are most likely to result in the establishment of an internationally competitive wind industry.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2006.06.005