Market Trends of Global Wind Power Industry
The Offshore Wind Power Sector is Expected to Witness Significant Growth
- Europe is the leader in offshore wind and is home to the largest operational wind farms globally. The region's offshore capacity is large enough to meet the electricity needs in Europe, which will only continue to grow within the upcoming years.
- Installation of wind farms in the offshore area is becoming a lucrative market because of the higher wind speed compared to onshore wind speed.
- Offshore Wind farms are more convenient than onshore wind farms, given that the offshore areas have more wind speed and less hindrance from land.
- While the total wind power installations in the world stand at around 900 GW, a minimal share of it, only around 63 GW, comprises offshore wind power installations.
- In 2022, the European Union witnessed 19 GW of wind energy installations, with 85% of them being onshore and the rest being offshore. Steady growth was recorded, with most additions in the Netherlands, followed by Belgium and the United Kingdom.
- In 2022, China installed almost 36 GW of wind capacity, with offshore wind capacity of 6 GW and onshore being 31GW, thus, China led the world for the third year in a row for both offshore and onshore wind energy installations. In 2022, China had a cumulative installed wind capacity of 1213 GW, making it the second-largest in the world.
- Countries like the United States plan to build seven major offshore wind projects, likely to power 10 million homes in the next seven years. Further, India aims to achieve 30 GW of offshore wind power in the next seven years.
- Moreover, in April 2022, UK Prime Minister Boris Johnson presented a plan to boost Britain's energy security, including an increased target of up to 50 GW of operating offshore wind capacity in the next seven years. This will, in turn, support the growth of offshore wind energy generation across the country.
- Furthermore, in July 2022, the United Kingdom Department for Business, Energy, and Industrial Strategy awarded Orsted a contract for difference for its Hornsea 3 offshore wind farm. The project has a capacity of 2,852 MW and will produce enough low-cost, clean, renewable electricity to power 3.2 million UK homes.
- Hence, with such a scenario, the offshore wind power market is expected to grow significantly during the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is the largest wind power market in the world, with leading wind power markets such as China, India, and Australia. Encouraging growth, especially in China, is expected to make it the leading region during the forecast period.
- The Chinese wind power market is largely dominated by its onshore segment, with new installations of 37 GW in 2022, making it to a cumulative total of 315.32 GW of onshore wind capacity in 2022.In 2022, China accounted for approximately 47 percent of the world's newly installed onshore wind power capacity
- Asia Pacific region comprises of one of the largest regions on earth. With the developed nations like China and Japan tapping into the high potential wind energy power market, the developing nations like India are not behind with steadily increasing their wind power installations.
- The Chinese wind power market leads both the Offshore and the Onshore wind power projects not only in the Asian Subcontinent , but also in the world. With more announcements of harnessing the wind power potential, the country has also laid the market for the components and maufacturers of the wind mills. China's installed capacity of wind power is at 365 GW.
- Other leading countries in the region include India, which, by the end of 2022, had an installed wind capacity of around 41.9 GW, and it added around 1.11 GW in the same year. The Indian government has set a target of 450 GW by 2030 thorugh all renewables. To achieve the target, the number of projects during the next two years is expected to increase drastically, thus driving the demand for wind power in the country.
- Therefore, large-scale wind power installations and upcoming projects and plans to expand the offshore wind power segment are expected to help Asia-Pacific dominate the market during the forecast period.
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