japan: the land of the rising wind
DESCRIPTION
Japan represents a substantial new market opportunity for the wind industry.TRANSCRIPT
Japan: Land of the Rising Wind
Significant market opportunity
• All nuclear plants shut down pending safety checks
• Spending increase to about $29.5 billion on fossil fuel imports
Since the Fukushima accident in March 2011
Source: CIA
Significant market opportunity
• Japan Wind Power Association revises 50 GW target to 75 GW by 2050
2.5 GW of capacity in 2010
Source: Siemens
Government developing infrastructure
Launched a 5-year, $162 million project
• Aimed to better integrate wind power to grid• Development of wind power output prediction service
to better forecast high wind power supply• Based on successful integration system used in Spain
Offshore wind potential
• Ministry of Environment estimates offshore potential alone at about 1,000 GW
• 4 projects totaling 254 MW in development• Government recently raised feed-in-tariff but industry
says it’s still insufficient• Developing projects with floating turbines to operate in
deep water
Currently, there are 49.6 MW of offshore wind capacity (including 4 MW of floating turbines)
Offshore wind investment
• Softbank subsidiary, SB Energy, providing investment
• Wind Power Energy to develop a 90 MW project• 18 turbines to be located 600 meters to 1,600
meters off of Kamisu • Expected to be operational in 2017
First commercial offshore project in development
Competitive landscape
• Danish wind turbine manufacturer
• Has most installed capacity in Japan
• Entered into offshore wind joint venture with Mitsubishi which will better position the company to compete in offshore wind projects
Vestas Wind Systems
Courtesy Vestas Wind Systems A/S
Competitive landscape
• Developed a 2.85 MW turbine specifically for the Japanese market
• New turbine can withstand typhoon-strength winds, lightning strikes, and turbulent conditions
• Second to Vestas in market share
General Electric
Courtesy: GE
Competitive landscape
• Currently has 123 MW of installed capacity
• Recently won a 17-turbine supply contract for a project on the northwest coast
• In 2013, won a 6-turbine supply contract, for Akita Port, to debut direct-drive technology
Siemens AG
Courtesy: GESource: Siemens
Foolish takeaway
Experts agree that wind power will gain favor similar to solar power’s popularity• Vestas, GE, and Siemens are all well-positioned to
profit from the growing popularity of wind power in Japan
• Despite trading at 52-week highs, Vestas offers the greatest growth potential as it is a pure-play on wind
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