CEO at Freen OU, a small wind turbine manufacturer. We deliver sustainable energy projects across the EU, Middle East, Africa and Asia.
Let’s be real: the wind energy industry hasn’t been doing particularly well in recent years. With a host of previously scheduled projects shelved, green energy companies have been report serious losses and look for ways to reverse this unfortunate trend.
I think the reasons for this decline are pretty obvious and include the war in Ukraine, accelerating inflation, declining tax incentives, disruption of once-efficient supply chains, and the generally cautious approach to with regard to major investments in infrastructure. The needs are still there and the goals have not changed, but major energy initiatives appear to have lost their once powerful momentum.
However, as the popular saying goes, every crisis presents opportunities. New challenges may have hampered the execution of previous plans, but they have also led to the emergence of new or updated strategies, reassuring the industry of its decision to intensify the transition to renewable energy sources in a context of increasing volatility in fossil fuel supplies.
Current Market Trends
The world in general and in particular the member countries of the International Energy Agency are collectively striving to achieve a net zero emissions by 2050 objective via intermediate steps. This includes Europe’s 2030 target 40% energy in the EU from renewable energy sources, which will require 31 gigawatts of net new production capacity per year.
In fact, geopolitical instability in Europe as well as a prolonged period of uncertainty in global financial markets have resulted in growing interest in green energy— even to the extent that some experts believe that the objectives previously set will be largely exceeded.
From my experience in wind energy, I see the key points of the green energy agenda as:
• Expand manufacturing capabilities to achieve short- and long-term goals.
• Creation of stable supply chains and overall cost optimization.
• Increase the share of offshore wind energy in overall green energy production.
• Diversification of electricity production sources and creation of hybrid energy parks.
• Intensification of fundamental R&D and widespread introduction of green technologies that can be installed in close proximity to buildings, including compact vertical turbines.
• Integrate sustainability at the heart of the green energy manufacturing process to minimize CO2 emissions.
However, obstacles exist. These include regulatory constraints, financing issues and technological adaptation. Overcoming them requires an enabling regulatory environment, securing public and private funding, and continually investing in technological advancements and workforce training.
Before we focus on how to overcome these obstacles, let’s look at what small wind energy can do.
Small wind energy
As part of broader diversification and scale-up of green energy, I see compact wind turbines offering many benefits to both new energy providers and established market leaders. This includes a significantly lower market entry threshold, simplified deployment procedures and suitability for deployment in areas where large conventional wind turbines would not operate or could not be installed.
As the manufacturer of these wind turbines, I believe that small wind farms have the qualities and potential to effectively fill the gaps and help us overcome the challenges of wind energy.
Take on the challenge
However, as mentioned earlier, the path to effective implementation of wind energy projects will not be easy. I believe business leaders can focus on the following areas to help ensure the long-term success of adopting small wind energy and adjacent technologies as an integral part of their service portfolio:
• Increase manufacturing capabilities to meet short- and long-term goals. Business leaders can invest in automation/digitization process technologies and frameworks to help streamline production and increase output. Using Industry 4.0 practices such as smart factories can help you achieve your production goals while ensuring quality and efficiency.
• Seek to address the need for stable supply chains and overall cost optimization. You can start by working working closely with your suppliers and integrating robust supply chain management systems. A combination of lean manufacturing to help identify inefficiencies and forging strategic partnerships can both help create resilient supply chains.
• R&D must continue to be the backbone of sustainable energy solutions. Fundamental R&D underpins cutting-edge green technologies, including compact vertical turbines. Developing a long-term product development strategy can help ensure the introduction of innovative solutions.
• Implement sustainability at the heart of the manufacturing process. Green energy manufacturing must use energy-efficient production methods, including minimizing waste and maximizing recyclable materials. The adoption of carbon capture and storage (CCS) technologies can help further reduce CO2 emissions.
• Ensure the adaptability and scalability of your innovations. Techniques ensuring scalability could involve modular designs for easier production and transportation, simpler installation and maintenance processes, and comprehensive planning.
By incorporating these recommendations into their strategies, business leaders can not only prepare for the future of wind energy, but also lead the charge toward a more sustainable and energy-efficient world.
Summary
Overall, you want to look to provide some degree of operational agility and scalability when considering the future of wind energy. To this end, I believe there is a tangible opportunity for small wind turbines to meet regional and international energy targets while helping to reduce the carbon footprint as part of a broader green energy strategy.
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