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I'm sure you can draw some valid conclusions from the effect of the Basque government and Gamesa working to save industry in the region. But it's very hard to frame it globally, as you're trying.

Spain could almost be designated a captive market in wind for its own companies, like India.  Within that frame, with strong Iberdrola support, Gamesa became a power.  But Gamesa has had very limited success when moving to other markets.

Their entry into the US is particularly telling, as their technology was not up to other European standards.  Without the support of Iberdrola in the US, Gamesa would have a very hard time.  Despite strong relationships with Pennsylvania unions, and the use of converted factories there, Gamesa has had a very hard time finding equilibrium.

The problem of success stories from captive markets not being able to replicate that in more mature markets is not limited to Spain, though by starting small Acciona is certainly moving forward.  Suzlon's very tough and expensive entry into the US is a spectacular example of a company very successful, even controlling, of a particular market, yet having a very rocky entry into a more sophisticated market.  Suzlon is not out of the woods yet, and without its purchase of REpower would be even deeper in the hole.

The Basque offshore cluster is but a shadow of the North Sea - Baltic cluster, and will have virtually no influence outside of perhaps small Spanish development.  At this stage, there is no technology nor expertise replicable to the wider offshore space, Gamesa's 4.5 MW turbine notwithstanding.

Acciona and Gamesa have had tough times in China as well.  This is a symptom of coming from a captive market, where the bar is set lower, but is not recognized until higher standards are needed.  Smaller Acciona has the strategic advantage here because being smaller, they are able to adjust quicker with their very capable engineering.  (Im writing about the wind division, not the entire company.)

To get a clearer picture of the split between Gamesa and Vestas, and the longer-term results, might well take some more digging.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Tue Feb 2nd, 2010 at 05:51:07 AM EST
[ Parent ]
Then again, entry into a foreign market is not only determined by the quality and price of the product and relationship with developers, see Enercon and the USA.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Feb 2nd, 2010 at 05:57:50 AM EST
[ Parent ]
There's finally a chink in the GE patent armor, as Mitsubishi won the latest round, that they are not infringing.  As part of their claim, they stated that GE's initial patent was not fairly awarded, which I'm sure pleased Enercon.  Enercon sits very comfortably north of the border in Canada, quietly nursing their top line reputation.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin
by Crazy Horse on Tue Feb 2nd, 2010 at 06:08:45 AM EST
[ Parent ]
By the way. What do you make of the market share stats on page 6 of the German 2009 stats? That jump of Enercon to 60% primarily at the expense of Vestas.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Feb 2nd, 2010 at 10:00:02 AM EST
[ Parent ]
Amazing that Enercon can capture such a huge portion of a mature market.  Likely based upon performance and reputation, as well as an exceptional O&M infrastructure.  Unbelievable (actually, quite believable) that this technology is banned from the US because of patent infringement, when Enercon wrote the book on that technology as the first variable speed turbine.

i suspect in the coming years REpower will grow some, GE will really begin to capture market share with their new 2.5MW machine, Nordex should increase, and if Fuhrländer can increase production and marketing of the W2E turbine, they could cut into Enercon.  But it will be tough, and I wouldn't be surprised if GE focuses elsewhere.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Tue Feb 2nd, 2010 at 03:16:38 PM EST
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