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2 BACKGROUND 2.1 Market trends The global wind energy market has experienced significant growth over the past decade, driven by the increasing cost-competitiveness of wind energy and policy momentum to de-carbonize electricity supply. Figure 2-1 illustrates the rapid growth in global wind power installations, and Wood Mackenzie’s outlook for the next 5 years. The U.S. market has experienced multiple demand peaks and valleys, following decades of one- and twoyear extensions of the Production Tax Credit (PTC) that has kept the U.S. wind industry in a state of continuous flux. The latest extension of the PTC in 2015 and a subsequent 2016 Internal Revenue Service (IRS) guidance brought unprecedented clarity to the wind development pipeline. U.S. wind developers now have four years to complete projects once PTC-qualified and enjoy a multi-year phase-out window that gives developers certainty about the terms of their tax treatment for projects grid-connected as late as 2023.

Note: Based on Q4 2018 Market Outlook Update (MOU) Source: Wood Mackenzie

Figure 2-1 Global wind energy market

As illustrated in Figure 2-1 above, Wood Mackenzie forecasts that 2020 will be a record year for the U.S. wind energy industry, with nearly 12 gigawatts (GW) installed in the last year of full-value PTC, prior to the phase-out of the incentive. Annual wind installation volumes will begin to decline as the phase-out begins,

DNV GL – Document No.: 10080081-HOU-R-01, Issue: C, Status: FINAL www.dnvgl.com

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R&D pathways for supersized wind turbine bladesSupersized wind turbine blade studyLawrence Berkeley National LaboratoryDocument Number: 1008...

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R&D pathways for supersized wind turbine bladesSupersized wind turbine blade studyLawrence Berkeley National LaboratoryDocument Number: 1008...

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