A few weeks ago, construction began on the first of seven 10-gigawatt wind power bases in China.
I initially wrote about these wind power bases last month, when the vice president of the Chinese Wind Association announced the project— which is to be completed by 2020. Certainly this is a major part of China’s wind power goal of 100 gigawatts by 2020.
But as I’ve said time and time again, this is a global trend. And while new government support in China and the United States is providing fertile ground for growth and opportunity, wind energy momentum is not constrained by borders.
The fact is, there are already hundreds of active wind farms across the globe. Here’s a map to give you an idea where most are concentrated today. .
And here’s a map that shows wind farms currently under production. . .
Finally, here’s a map of wind farms that are now planned for future development (be advised that there are some projects not included here, as this map is still under construction). . .
It should be no surprise that companies such as Vestas, Suzlon,
Sinovel is actually one of the largest and most successful wind energy companies in the country. And if you know anything about how the Chinese do business, you know that Chinese suppliers are almost always given top priority. Because of the magnitude of China’s wind energy momentum, Sinovel is sure to solidify its position as a major global player.
That being said, one U.S. company that’s been benefiting from Sinovel’s momentum is American Superconductor (NASDAQ:AMSC).
Back in 2007, American Superconductor (through its Windtec subsidiary), landed a deal with Sinovel to jointly develop 3- and 5-megawatt wind energy systems. But last month, American Superconductor announced that it had increased its sales contract with Sinovel by $20 million, making the total deal now worth $470 million. Sinovel is also AMSC’s largest customer, responsible for about 70% of its order book.
And if you’re wondering how American Superconductor’s stock has done this year, take a look. . .
* Maps provided by GlobalData