EMEA small wind turbines market is estimated to witness high growth owing to increasing rural electrification efforts & heightened focus on renewable energy integration
EMEA small wind turbines market is estimated to be valued at USD 32.06 Bn in 2024, exhibiting a CAGR of 6.2% over the forecast period (2024-2031). Small wind turbines provide cost effective solutions for the electrification of remote and rural areas not connected to the main power grid. Furthermore, government focus on integrating renewable sources like wind and solar for energy security and environmental benefits is also propelling market expansion.
Market Dynamics:
Rural electrification programs across numerous countries within the EMEA region and heightened policy support for renewable energy integration are the two major drivers propelling the small wind turbines market forward. National rural electrification programs aim to enhance energy access in remote areas by leveraging decentralized renewable solutions like small and micro wind turbines. For instance, the government of Morocco aims to electrify 98% of rural households by 2030 through off-grid renewables. Similarly, support schemes covering capital subsidies and feed-in-tariffs for small wind installations have boosted adoption. The small wind segment can help countries meet their commitments under the Paris Agreement by adopting clean sources on a distributed basis across communities. Going forward, standardized product certification and integration with energy storage systems could further scale applications of small wind turbines.
Government Subsidies and Tax Rebates are Driving Demand for Small Wind Turbines
Government subsidies and tax rebates have been a major driver for the EMEA small wind turbines market. Many countries in the region offer financial incentives to encourage the adoption of renewable energy technologies like small wind turbines. For example, the UK government provides subsidies of 5.5 pence/kWh for installations under 15kW for the first 5 years. Similarly, Italy offers a 65% tax deduction on total investment costs. These subsidies and rebates make small wind turbines economically viable for residential and commercial properties. They help lower the payback period and make renewable energy generation more affordable.
Rising Electricity Prices are Encouraging Self-Generation with Small Wind Systems
Rising electricity prices across Europe have made self-generation an appealing proposition for businesses and homeowners. Traditional electricity rates have increased substantially in recent years due to inflation, higher transmission costs and taxes. At the same time, the costs of small wind turbines have decreased significantly. This has improved the economics of deploying small wind systems for self-consumption. Users can offset a major portion of their electricity costs by generating power locally through small turbines. The prospect of stable long-term energy costs is attracting more customers. With electricity prices projected to continue rising, the push for self-generation will drive further growth opportunities for EMEA small wind turbines market in the coming years.
High Upfront Capital Costs are Hindering Wider Adoption
The high upfront capital costs involved remain one of the key restraints on the EMEA small wind turbines market. While costs have reduced over the last decade, the initial investment requirement, which runs into thousands of dollars, puts small wind systems out of reach for many potential consumers. The payback period too can be lengthy at 7-10 years on average depending on various site-specific factors. This deters a lot of residential and small commercial customers who are unwilling or unable to make such a large capital expenditure. Even with available subsidies and tax rebates, the high starting costs prohibit wider penetration of small wind technology across the region. Overcoming this cost barrier will be important for increased market uptake.
Lack of Product Awareness Hampers Market Growth
Despite the various benefits, a lack of sufficient consumer awareness about small wind technology is impeding the market's progress. Unlike solar power, small wind turbines are still a relatively niche and unfamiliar product for most potential customers. Information gap persists around performance capabilities, return on investment potential, installation complexity, maintenance requirements and so on. Even within the renewable energy space, small wind turbines do not receive as much attention or promotion compared to solar. This lack of consumer education and product familiarization restricts demand growth. Market players will need to step up promotional initiatives to increase awareness, understanding and visibility around small wind as a reliable renewable product option.
Remote and Off-Grid Applications Present Lucrative Opportunities
There is a huge market potential for small wind turbines in remote, island and off-grid communities across the EMEA region. In rugged terrains or isolated rural areas not connected to centralized grid infrastructure, small wind systems become an indispensable source of local power generation. They offer a reliable, affordable and sustainable solution to meet the energy needs of such off-grid communities. Another key opportunity lies in hybridizing small wind turbines with solar PV and storage solutions. This enables higher capacity factors and round-the-clock power supply that is well-suited for off-grid agricultural and telecom applications. The remote energy access market holds significant promise for future business prospects in the EMEA small wind space.
Falling Technology Costs will Spur Greater Commercial Uptake
Over the past decade, tremendous cost reductions have occurred in the small wind turbines segment through advancements in design, materials, manufacturing and balance of system components. Larger and more efficient turbines are becoming available at lower price points compared to earlier generations. The payback periods have reduced considerably, now ranging between 5-8 years typically. As these declining technology costs continue to bring small wind energy within reach of more commercial customers, it is poised to see wider market adoption for business and industrial applications requiring self-generation capacity. Technology price declines will be an important enabler for expanding the commercial potential of small wind turbines across the EMEA region.
Link: https://www.coherentmarketinsights.com/market-insight/emea-small-wind-turbines-market-4528
Key Developments:
In May 2023, WR installed mini windmills near Khar and Naigaon railway stations in India. Turbine blades will rotate when train passes through them, producing electricity in the range of 1kW to 10kW. It has decided to install such windmills at more locations after its successful result. So, this green energy will be transmitted to main grid and will boost product adoption across the region.
In April 2023, the Netherlands-based company, Airturb, developed a 500 W hybrid wind-solar power system for rooftop and off grid applications. It comprises small vertical axis wind turbine with helical Savonius shape, together with 30 W solar panels. Thus, the launch of the new product expanded its product portfolio and strengthened the company position in the industry.
In April 2022, BRAUN Windturbinen GmbH is a small manufacturer of wind turbines in Germany, and it delivered a small wind turbine of 4.5 kW capacity on a 7.0 m tilt mast - a procedure-free project in Northrhine-Westphalia, Germany
Key Player:
Siemens Gamesa, GE Renewable Energy, Nordex SE, Enercon GmbH, Vestas Wind Systems A/S, Eoltec, Skystream, Small Wind Turbine Company, Kestrel Wind Turbines, Xzeres Wind Corporation, Windspire Energy, Bergey Windpower, Urban Green Energy, Aeolos Wind Energy, and Eocycle Technologies
