Recent trends in external environment of the 

industry
• Development in African and South American countries offers robust business opportunity for wind
energy sector power- Demographic

• Shift of wind energy OEM power center from Europe to Asia Pacific (China-global leader, India, Korea)-
industry- Political-regulatory

• US launched the "Clean Energy Plan" and the "Environmental Protection Agency" in 2015 and urged
countries to drive focus on solar and wind resources- Political-regulatory

• People have started to notice the disadvantages of wind turbine farms on the local communities and
biodiversity. They cause sound, vibration and visual pollution and impact the migratory birds and
wildlife- Social

• For businesses, purchasing wind power has become the new normal. Companies look at meeting
sustainability targets to improve bottom lines by utilizing wind or solar energy- Economic

• There has been a stagnation in the technology that is used to harness the wind energy since the late
2000s. Currently efforts are being made by companies to increase the efficiency and reduce the cost of
the existing turbines- Technological
 Is the industry consolidating? (I)

The wind turbine sector has had a long history of consolidation. Following are the noteworthy Mergers and
Acquisitions that contributed majorly to this consolidation and restructuring.

• Merger of NEG and Micon – 1997

• Merger of MHI and Vestas, subsequent demerger and then acquisition of MHI by Vestas- 2000
• Acquisition of NEG Micon by Vestas- 2004
• Acquisition of Bonus Energy by Siemens- 2004
• Acquisition of Martifer Group’s stake in Repower by Suzlon- 2007
• Acquisition of Alstom by GE- 2014
• Mergers of Nordex and Acciona Windpower- 2015
• Merger of Gamesa and Siemens Wind Power- 2016
• Merger of Suzlon with it’s 3 subsidiaries- SE Blades, SE Electricals & Suzlon Wind International- 2016
• Merger of Gamesa and Siemens's Wind Power Business- 2016
 Is the industry consolidating? (II)

• Reasons behind the consolidation

1) Overcapacity- production capacities exceed demand
2) Reduction in Levelized cost of energy (LCOE)- lifetime cost per MWh of electricity produced

• This consolidation has led to the presence of only 4 major players in the industry Vestas, Gamesa
Siemens, GE, Goldwind

• Some of the firms are now trying to gain a competitive advantage by vertically integrating with spare
part manufacturers, blade manufacturers, etc.
Key Performance
Indicators
1. Performance KPIs
• Wind/Energy Index 
• Output of several turbines that act
as a reference
• Time based availability (TBA)
•  Time a wind turbine is operational/
total time under consideration
• Energy based availability (EBA)
•  Real energy produced by the
turbines / actual energy available
Key Performance
Indicators
2. Maintenance KPIs
• Response Time
•  Duration between detecting a failure and beginning maintenance
on the turbine
• Scheduled Compliance
• Scheduled maintenance tasks completed on time / total number
of tasks registered
• Overtime Jobs
• overtime hours / planned working hours for the maintenance crew
• Backlog
• set a baseline for comparison
• Corrective Maintenance
• Corrective – After an issue is occurred
• Preventive – before the bottleneck occurs