What do wind turbines and summer cottages have in common? They are quite similar. Perhaps not in numbers, but from a technology point of view. Some are equipped with features only considered necessary for survival; others have ultra-modern technical solutions that even enable remote access to monitoring equipment by mobile phone. Both in cottages and turbines, features requested in the 90s may not live up to our needs today.
In many ways, there isn’t much new in renewable energy. Renewable energy, of course, is new in the sense of what it means. The energy source renews itself and its availability is as such plentiful. Yet, both wind and hydro energy have been captured for hundreds of years, for example, in sailboats, windmills, hydro powered mills, saws and other equipment. Solar was harvested in greenhouses and for heating long before there were photovoltaic panels.
Soaring fuel prices and global overcapacity are forcing the marine industry to rethink conventional power configurations. Ship owners are struggling to turn a profit. The time has come for advanced technologies that can revolutionize the way ships generate and use energy.
The Switch’s permanent magnet technology has been proven in the harsh environments of the wind industry. Now, we’re making this technology available to marine to offer unmatched power density, energy efficiency, design flexibility and operational reliability.
The debate still continues about which drive train is the best for a wind turbine. In 2011, 42.3 GW of wind generators were delivered; PMG’s share was 6.5 GW, which gives it a 15% market share. This is already a significant accomplishment. So we can say that PMG is a standard option and no longer just a technology trial.
Although wind industry growth has slowed down to an annual average of 3.8%, MAKE consulting estimates for the next five years that PMGs will keep growing faster than the average market growth rate.
As we move forward in these unpredictable times, we’ve been sharpening our strategy to offer our customers even more value so they can succeed at what they do best.
Having the world’s largest permanent magnet generator and full-power converter product range, we can offer customers predictable time-to-market with this latest, advanced technology. We’ve streamlined our processes to shorten the lead times in customer projects to give them the edge to come out with the bestsellers of the future.
Between 2009 – 2011, we were spoiled by a “green race” that started as a sprint. There was an urgent need to bring Asian nations—especially China—into line with the rest of the world to use cleaner and more efficient energy sources.
Suddenly in 2012, it’s turned into something of a marathon, with companies and financial institutions involved in the market, which has been slowed by regulatory and political climates that have evolved in the face of new economic realities.
Permanent magnet (PM) technology has some clear benefits also for marine applications. Since fuel prices have gone up by 30% in only 2 years and freight rates have remained at about the same level for the past 10 years, energy savings has become hot topic in shipbuilding.
Last month’s HUSUM WindEnergy exhibition gave us firm proof that the wind power business is moving ahead again. We’re seeing movement from all different directions and positive signs that the worst may now be over. Bigger and better turbines are currently being developed to respond to future market requirements.
The wind power business has experienced difficulties over the years in different continents. In 2009, the financial crisis squeezed money from the European market. In 2010, the US market slowed down. And most recently, China cooled in 2011.
We have been able to navigate in this turbulent environment, even though The Switch, too, has experienced challenges. Many potential projects have not turned into the planned volume production. Many of our customers have experienced challenges to enter the market, changed ownership or have given up on the wind turbine business.
We have analyzed our success factors – and come to the conclusion that we embrace certain rights, giving The Switch the freedom and ability to excel even during hard times.
All over the world, politicians see the opportunity for job growth in the renewable energy business. For example here in the US, the economy and job creation is one of the key themes in the ongoing primaries and the upcoming presidential election.
The wind and solar power industries offer opportunities to create more good-paying jobs for the local manufacturing industry, particularly as in the past these type of jobs have largely moved to low-cost countries with inexpensive labor, such as China, India, Vietnam and others. In many cases, the job creation opportunity is of higher political interest than concerns about global warming or even the western world’s heavy dependence on imported oil.
What counts is the total cost, not purchase cost. This was one of the main themes that was identified at the international IQPC Wind Turbine Supply Chain management conference in August in Germany. Speaking about The Switch agility to meet market demand fluctuations at the conference, Simon Hewitt, Global Sourcing Manager at The Switch, discussed demands for greater manufacturing flexibility, an effective risk management strategy and ways to adapt the wind turbine supply chain to demand fluctuations.
The growing global demand of rare earth metals combined with China’s ever-tightening grip on the material keep pushing up the magnet prices. While we at The Switch don’t think that the price trend can last for too long, we understand that the matter is of great concern for the wind power industry. To tackle with this alarming situation and to meet future needs, the industry needs to change its perspective to open up to new opportunities.
The Switch has done intense research and development to reduce the amount of magnets needed for the production of permanent magnet generators. Based on the successful testing of 20 different machine types, we are in a unique position to make third generation permanent magnet machines. By combining our extensive field experience with our state-of-the-art design methods, not only do we have the skills to produce classical machines but we can also bring new innovation to the permanent magnet generators field.
