GWEC says more than 300 GW of wind power capacity to come online by 2024

Yesterday, the Global Wind Energy Council (GWEC) unveiled the 14th edition of its Global Wind Report, which it says has been completely revamped.

The report provides a comprehensive global view of both the onshore and offshore wind energy sector. Data in the report confirms that 2018 was a positive year for the wind industry, with 51.3 GW of new installations. Market-based mechanisms, such as auctions, tenders and Green Certificates were the main drivers behind new installations in 2018.

Looking ahead, the market outlook for the global wind industry is strong, said the group. GWEC Market Intelligence expects over 300 GW of new capacity to be added in the next five years. In the short term, governmental support, in the form of auction and tender programs and renewable targets, will continue to be a significant driver for new installations. In addition, opportunities for wind energy to operate on a commercial basis are increasing as the industry continues to prove its cost-competitiveness and bilateral agreements, such as corporate PPAs, grow.

The report identifies three global trends as the main drivers of future market growth, aside from regulation and government targets: changing business models of industry participants, unlocking further volume through corporate procurement outside of mature markets and how value-focused solutions, such as hybrid generation plants, are unlocking more opportunities for the wind industry.

 Changing business models of industry stakeholders are driving growth by intensifying competition. Increasing digitalization opportunities are bringing in new players with new competencies and solutions, whilst a number of traditional players are revising their models to make investments outside of their core business.

Meanwhile, a steady growth in corporate sourcing as large companies choose wind as their main preference for power procurement is driving strong growth in mature wind markets. It has the potential to propel further demand but support from local regulators and authorities is required to make this happen. Taking corporate procurement outside of mature markets can unlock even further volume for wind.

The rising focus on the value an energy source provides to a system and a market, including the produced energy output, is easing integration and helping to match supply and demand. Therefore, in order to develop new solutions for technology, project design and financial structuring, regulatory adjustments are required to account for the added value of energy sources such as wind.

GWEC Market Intelligence uses original data and analysis to compile the report and offers broader insight with individual country profiles, stakeholder insights and thought leadership across all regions to inform members and help facilitate the growth and development of the wind industry.

 Additional highlights from the report are below:

  • Asia
    • China accounted for the highest proportion of new installations in 2018, both offshore (40%) and onshore (45%).
    • Governments of South-East Asian markets like Vietnam and the Philippines have set targets for wind energy deployment to increase installations.
    • Indonesia and Thailand have plans in place to decrease reliability on nuclear energy and fossil fuels.
  • Latin America
    • The Latin American wind market has grown over the past ten years, accumulating total installations of 25 GW.
    • Auction and tenders will drive the majority of installations in the Latin American markets. Brazil and Argentina, for example, continue to conduct joint capacity auctions for onshore wind and solar.
    • Colombia is an emerging wind market, with the government setting the ambition for 1.5 GW of renewable capacity by 2022.
  • Africa and the Middle East
    • The majority of onshore installations are expected to come from Egypt, Kenya, Morocco and South Africa, adding over 6 GW new capacity by 2023.
    • The highest capacity additions in 2018 came from Egypt with 380 MW, proving the progress of this market.

Wind Power development is covered at POWERGEN International. Click here to learn more about the 2019 event, which takes place in New Orleans, November 19-21. 

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