Descriptive Text of Value Chain Step
An on-shore wind turbine is typically composed of three modules: (1) rotor, (2) nacelle, and (3) tower. A more detailed anatomy of a typical wind turbine can be found in Figure DI.1. Wind turbines account for approximately 71% of the total cost of an on-shore wind power project as of 2015.
The main business activities of turbine manufacturers are designing, manufacturing, and installing wind turbines. Some turbine manufacturers also provide operations, maintenance, and performance optimization services for wind power projects.
As of 2017, the top three wind turbine manufacturers, measured by shares of cumulative installed capacity of the U.S. wind turbine fleet, are GE Renewable Energy, Vestas, and Siemens Gamesa Renewable Energy. These three manufacturers collectively represent 85% of the U.S. wind turbine market, an increase of 6% from 2016 due to the Siemens and Gamesa merger that took place in April 2017. During 2017, around 7,000 MW of wind power capacity was installed in the U.S. Vestas, GE Renewable Energy, Siemens Gamesa Renewable Energy, and Nordex USA turbines represent 35.4%, 29.4%, 23.2% and 11.5% of 2017 capacity additions, respectively. Figure DI.2 shows the shares of cumulative installed capacity in the U.S. broken down by all manufacturers.
Wind turbine manufacturing is included in “Turbine and Turbine Generator Set Units Manufacturing” (NAICS 333611). As reported in the 2012 Economic Census, there are 183 establishments, 36,955 employees covered under this industry with a value of shipments of 16.9 billion dollars. However, even at the most disaggregated level (six-digit code), this NAICS code covers a range of components, products, and services beyond those specific to wind turbine manufacturing.
Figure DI.1 Anatomy of a Wind Turbine
Source: Department of Energy: https://energy.gov/eere/wind/inside-wind-turbine-0
Figure DI.2 Share of U.S. Wind Power Fleet by Wind Turbine Manufacturer
Source: Figure 68 from AWEA 2017 U.S. Wind Industry Annual Report