Why Full-Power Wind Converters Are Not Overtaking the Market Yet

High rare earth material prices hinder sales

  • September 26, 2013
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  • Why Full-Power Wind Converters Are Not Overtaking the Market Yet
    Why Full-Power Wind Converters Are Not Overtaking the Market Yet

The global market for utility-scale onshore wind converters continues to be led by doubly fed (DFIG) converters, according to a new report entitled "The World Market for Wind Converters - 2013" from IHS Inc., a leading global source of critical insight and information. DFIG converters are forecast to outpace full-conversion products by a compound annual growth rate (CAGR) of 1.6 percent from 2012 to 2017, reaching more than 9,900 units shipped in 2017. Three major factors are hindering the sales of full-conversion products in the converter market: high rare earth material prices, lagging offshore wind development and China's high demand for doubly-fed converters.

"In the first case, the high price of rare earth materials has led turbine original equipment manufacturers (OEMs) and generator manufacturers to reduce production costs by using less rare earth materials in their designs," said Jared Kearby, analyst at IHS. "This has resulted in an emphasis on continuing the production of doubly fed converter solutions, due to the increased demand." This year, doubly-fed converter shipments will outpace full-converter shipments by 4 percent.

Graduated in political sciences and international relations in Paris, Anis joined the team in early 2019. Editor for IEN Europe and the new digital magazine AI IEN, he is a new tech enthusiast. Also passionate about sports, music, cultures and languages. 

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