ILMA Compoundings February 2017 - 31

* Renewable Energy Standards (RES): RES
is also commonly known as renewable
portfolio standard (RPS). Currently, 29
states have RES that specify a minimum
share of wind power in the overall distributor's supply. However, no RES exists at
the federal level. The requirement is applicable only to investor-owned utilities,
but many states also include municipalities and electric cooperatives within the
scheme. While some states have specific
targets for wind power installation, others
have an overall target for wind, solar and
other renewable sources put together.

The overall installed
capacity for wind energy
has grown at a compound annual growth
rate (CAGR) of 24.4 percent over the period from
2004 through 2015.
The United States added 8,619 MW of
new capacity in 2015 and decommissioned
24 MW of capacity in the same year, resulting in a 13 percent growth over 2014.
The overall installed capacity for wind
energy has grown at a compound annual
growth rate (CAGR) of 24.4 percent over
the period from 2004 through 2015. The
rate has been subdued since 2009 because
of the economic slowdown in the country.
However, the installation of new capacity
peaked in 2012, when 13,101 MW was

added but about 19 MW of wind turbine
capacity was decomposed, reflecting a net
growth of 27.9 percent over 2011. According to estimates of the National Renewable
Energy Laboratory (NREL), the nation has
a potential for 11,000 gigawatts (GW) of
onshore wind capacity.
Wind turbines are installed across 40 of
the 50 states, and in Puerto Rico. Texas,
with an installed wind power capacity of
17,711 MW, or 24 percent of the U.S.
installed wind power capacity in 2015,
ranks first in terms of total installed capacity. Iowa and California, with 8 percent
each of the national total, are the other
important wind power states. Seventeen
states are in the "Gigawatt Club," which
includes states with more than 1,000 MW
of installed wind power capacity in 2015.
The Pacific Northwest, Plains and Midwest
regions are the primary new locations of
generating capacity; these regions account
for more than 59 percent of the sum total
of capacities installed from 2010 through
2015. Southeastern states have very low
capacities installed.
More than three-fourths of the wind
turbines installed in the United States in
2015 were manufactured either by GE
Wind Energy, Vestas or Siemens. The remaining turbines have been manufactured
by Gamesa, Mitsubishi, Suzlon, Clipper,
Accionia Windpower, Senvion, Nordex
and others. Wind turbines installed in the
United States are predominantly based on
geared technology.
NextEra Energy is the largest operator
of wind farms in the United States, operating with a capacity of close to 11.0 GW in

2015. Iberdrola Renewables and Berkshire
Hathaway Energy, with a combined capacity of close to 10.0 GW, are the nation's
other major operators.
It is estimated that around 94 percent
of the total installed wind capacity is above
the 1 MW category, with penetration of
2 MW to 3 MW turbines growing faster
than other sizes of turbines.
The industry, which was once dominated by turbines of less than 1 MW capacity,
is now dominated by higher-capacity ones.
The share of turbines with more than 3
MW capacity is currently very low but is
expected to increase through both onshore
and offshore installations.
Direct-drive turbines made inroads
in the U.S. utility scale wind market in
the early 2000s. By the end of 2015, the
country had close to 1.2 GW of onshore direct-drive wind turbine installed
capacity. Five 6 MW direct-drive Alstom
Haliade (GE Wind Energy) turbines will
be installed in the country's first offshore
wind farm, expected to start operations by
the end of 2016.

FINAL WORD FOR ILMA BLENDERS
It is a tough market for ILMA blenders
to enter, given the high cost of OEM approvals. This means the key opportunites
lie in the aftermarket and with hydraulic
oils and greases, where the risk is lower for
operators. Wind lubricants are one of the
few areas of high growth, and this space
will provide opportunities for some blenders. Companies must be careful, though,
to understand the full cost of entering
this market and the challenges that will be
faced in trying to gain or take business.

31



ILMA Compoundings February 2017

Table of Contents for the Digital Edition of ILMA Compoundings February 2017

Letter from the CEO
Inside ILMA
What's Coming Up
New Members
Perspective
Industry Rundown
In the Know
International Insight
Market Report
Your New BFF: How Technology Will Boost the Sales and Customer Service Interaction for Your Lubricants Company
The Climate "Accountability" Movement: Why It Matters to the Lubricants Industry
Wind Power Ramps Up Lubricant Demand
Business Hub
Counsel Compound
Washington Landscape
In Network
Portrait
ILMA Compoundings February 2017 - Cover1
ILMA Compoundings February 2017 - Cover2
ILMA Compoundings February 2017 - 1
ILMA Compoundings February 2017 - 2
ILMA Compoundings February 2017 - Letter from the CEO
ILMA Compoundings February 2017 - Inside ILMA
ILMA Compoundings February 2017 - 5
ILMA Compoundings February 2017 - What's Coming Up
ILMA Compoundings February 2017 - New Members
ILMA Compoundings February 2017 - Industry Rundown
ILMA Compoundings February 2017 - 9
ILMA Compoundings February 2017 - 10
ILMA Compoundings February 2017 - In the Know
ILMA Compoundings February 2017 - International Insight
ILMA Compoundings February 2017 - 13
ILMA Compoundings February 2017 - Market Report
ILMA Compoundings February 2017 - 15
ILMA Compoundings February 2017 - Your New BFF: How Technology Will Boost the Sales and Customer Service Interaction for Your Lubricants Company
ILMA Compoundings February 2017 - 17
ILMA Compoundings February 2017 - 18
ILMA Compoundings February 2017 - 19
ILMA Compoundings February 2017 - 20
ILMA Compoundings February 2017 - 21
ILMA Compoundings February 2017 - The Climate "Accountability" Movement: Why It Matters to the Lubricants Industry
ILMA Compoundings February 2017 - 23
ILMA Compoundings February 2017 - 24
ILMA Compoundings February 2017 - 25
ILMA Compoundings February 2017 - Wind Power Ramps Up Lubricant Demand
ILMA Compoundings February 2017 - 27
ILMA Compoundings February 2017 - 28
ILMA Compoundings February 2017 - 29
ILMA Compoundings February 2017 - 30
ILMA Compoundings February 2017 - 31
ILMA Compoundings February 2017 - Business Hub
ILMA Compoundings February 2017 - 33
ILMA Compoundings February 2017 - Counsel Compound
ILMA Compoundings February 2017 - Washington Landscape
ILMA Compoundings February 2017 - 36
ILMA Compoundings February 2017 - 37
ILMA Compoundings February 2017 - In Network
ILMA Compoundings February 2017 - 39
ILMA Compoundings February 2017 - Portrait
ILMA Compoundings February 2017 - Cover3
ILMA Compoundings February 2017 - Cover4
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