BIG MONEY IN SERVICING WIND

US O&M spending to reach $6 billion by 2025

11 July 2012 (Windpower Monthly)

“Annual spending on operations and maintenance (O&M) in the US wind industry will double from just under $3 billion this year to nearly $6 billion in 2025, accounting for 29% of total capital expenditures in the sector.

“…[C]onsulting firm IHS Emerging Energy Research says it expects O&M spending to grow at a 5.5% compound annual rate as total installed onshore capacity grows from 47GW at the end of 2011 to a projected 127GW over the next 14 years.”

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”The growth in spending is making the market for O&S services more competitive, the report says. Large wind owners are bringing more of the work in-house to leverage economies of scale…[and] turbine manufacturers are aggressively expanding the O&M side of their businesses to help make up for an expected drop in orders…[while] a host of independent service providers are entering the business.

“The competition is driving companies to offer new types of products aimed at improving project output…"

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