OPPORTUNITY
Michigan's new Renewable Portfolio Standard (RPS) will require that 10% of the state's energy be generated from renewable sources by 2015. Wind energy will represent a large portion of the renewable energy required to meet this goal and it is estimated that all of the state's utilities will purchase and install wind turbines over the next seven years. Further driving the demand for wind turbines and repair parts is the fact that demand for wind turbines is larger in the United States than in any other country, partially fueled by the fact that twenty-eight states across the country have instituted a state RPS. A report by the Renewable Energy Policy Project (REPP) shows that Michigan has a lot to gain from Wind Generation and other renewable energy industries. Michigan ranks second among all states in combined wind generation and manufacturing potential. We have over 900 firms operating in NAICS codes that could apply their capabilities to the wind industry. It is estimated that the wind industry alone could support 24,000 jobs if we pursue these opportunities before they are taken by other states.
This need for additional manufacturing capacity provides a great opportunity for Michigan manufacturers. Already, a number of Michigan automotive companies have successfully expanded their businesses to encompass manufacturing for large-scale wind turbine components. In this industry, a premium is placed on high precision, high quality, and quick turn-around. For those that can deliver, it represents a very promising opportunity for many Michigan companies.
NEXT STEPS
Before embarking on any diversification strategy, it is important to learn more about the industry to determine if your company's capabilities match a demand in the market. Mapping your capabilities and competencies to the needs of the market, understanding the products and major players, and identifying the supply partners, business model options and the required investment are crucial to a successful strategy.
The first step is education. To learn more about the wind industry, consult the resources below. If you would like to pursue this opportunity, please email your contact information and any additional questions or information that may be helpful in providing assistance to diversification@michigan.org.
ADDITIONAL RESOURCES
Michigan Economic Development CorporationSM (MEDC)
The MEDC offers one-stop business assistance to best match businesses' needs with Michigan's opportunities.
MichiganAdvantage.org/wind
NextEnergy
NextEnergy is the MEDC's partner in alternative energy development and diversification efforts. A non-profit, NextEnergy is one of the nation’s leading research catalysts and business accelerators for alternative and renewable energy. Our leadership team offers more than a hundred years of experience working with utilities, alternative fuels, hybrid power trains, business development, venture capital investment and more in the alternative energy industry.
NextEnergy.org
American Wind Energy Association (AWEA)
AWEA is a national trade association representing wind power project developers, equipment suppliers, services providers, parts manufacturers, utilities, researchers and others involved in the wind industry-one of the world's fastest growing energy industries.
awea.org
Renewable Energy Policy Project (REPP)
REPP's goal is to accelerate the use of renewable energy by providing credible information, insightful policy analysis and innovative strategies amid changing energy markets and mounting environmental needs by researching, publishing and disseminating information, creating policy tools and hosting highly active, on-line, renewable energy discussion groups.
repp.org
