Who's Top in Wind?

US independent power producer FPL Energy (NYSE: FPL) narrowly edged out Spanish utility Iberdrola to become the top global wind power owner in 2006, according to the latest rankings from Emerging Energy Research (EER), an advisory and consulting firm that tracks emerging technologies in global energy markets.

FPL Energy closed 2006 ahead of Iberdrola by just 156 MW following major US project activations, but Iberdrola will likely reclaim leadership in 2007 with the acquisition of ScottishPower, which represents 1,400 MW of wind power capacity installed in the UK and the US. According to EER, the top 20 wind plant owners together account for about a third of wind power capacity worldwide.

“Competition for global wind power leadership remains intense, with North America’s sustained growth providing a major boost to FPL and up-and-coming IPPs to compete with the acquisition strategies of European rivals,” says EER Research Director Keith Hays. “The rankings reflect a continuation of European utility dominance, though US players’ activations of mega projects and North America’s broader growth prospects will increase competition across the Atlantic in the near future.”

Led by firms active in the U.S. and Spain, the top 20 wind power operators added over 5,100 MW in 2006 – roughly an even mix of existing projects and completion of major developer acquisitions.

Led by Iberdrola and FPL, utilities continue to dominate the rankings, representing 14 of the top 20 wind power owners. IPP activity is also on the rise as these firms consolidate global pipelines. Major IPPs Acciona Energia, Babcock & Brown, Trinergy, and Horizon have become key players through portfolio and project acquisition. China’s booming wind power market growth has pushed national wind power champion Long Yuan into the top 15 with over 600 MW as the only exclusively Asia-focused player in the rankings.

“The industry’s global scaling is drawing wind plant leaders into new domestic and international markets, with a focus on acquisitions and on execution of project pipelines resulting from these deals,” says Hays. “Sustaining a steady flow of MW additions will become increasingly dependent on diversifying geographically, with North America evolving as the largest scale near term opportunity for global leaders on top of steady, smaller European project growth.”

The Top 10 Wind Turbine Manufacturers: % of total new installed capacity 2006