Research firm Wood Mackenzie says it anticipates the global wind power industry will install 1 TW of new capacity between 2021 and 2030.
The world set a new record in wind installations in 2020 and saw a number of national and regional targets set for 2030, underscoring the important role of wind technology in the energy transition, according to Wood Mackenzie.
Despite the growth in the wind energy market, there is a need for the enactment of new policies or revision of existing targets to ensure increased uptake of wind.
Moreover, there is a need for increased collaboration between international lenders, energy project developers and both the private and public sectors to increase funding for wind energy project deployment.
The availability of government subsidies is also vital to accelerate uptake. This is evidenced by an increasing number of projects left partially completed in China, as developers claimed full capacity to capitalize on the onshore wind subsidy before it expired at the end of last year. This means for as long as there is enough financial support from governments, wind energy developers are able to move at a faster pace, a development that would result in more capacity being deployed.
2020 saw 114 GW of new wind capacity being added globally, representing an 82% increase year-over-year. China, the world’s largest market deployed 72 GW, which alone would have qualified as the most capacity added globally in a single year, although the majority of these projects were partially completed.
The rest of the world – excluding China – added nearly 43 GW in 2020, a 15% increase YoY. Significant contributions came from the US (+6,565 MW YoY), Brazil (+1,055 MW YoY), the Netherlands (+1,878 MW YoY), and Australia (+1,363 MW YoY).
Commenting on anticipated market trends through 2030, Luke Lewandowski, Wood Mackenzie research director, said: “China’s 1,200 GW target of wind and solar by 2030 will result in 408 GW of new wind capacity from 2021 to 2030, representing 41% of global build. Offshore capacity in the country will grow by 73 GW during this period, an 800% increase in installed capacity in this sector.”
Other Asia Pacific countries are expected to install 126 GW in capacity combined through 2030, with India accounting for almost 50% of the anticipated capacity.
Lewandowski, added: “Another key region that will spur wind power growth through 2030 is Europe. The EU’s decarbonisation plan will motivate 248 GW of new wind capacity over our 10-year outlook. Additionally, 66% of this capacity will be onshore due to larger turbine models unlocking space-constrained markets, the repowering of an aging fleet, and increased development in Eastern Europe.”
Between 2021 and 2030, new offshore capacity in the US is expected to average 4.5 GW per year and will comprise 40% of annual wind turbine build.
In Latin America, Brazil, Chile, Colombia, and Mexico will account for 90% of a record 16 GW of new capacity expected as the region intensifies coal retirement and as more commercial and industrial customers demand energy generated using clean resources. Moreover, the region is expected to record an increase in renewable energy auctions.