The GWEC updated market outlook has predicted an additional 330 GW of new wind energy capacity will be added to the global energy market from 2019 to 2023
The Global Wind Energy Council’s (GWEC) recently released updated market outlook has predicted an additional 330 GW of new wind energy capacity will be added to the global energy market from 2019 to 2023, bringing total capacity to over 900 GW.
The outlook has been increased by an additional 9 GW from the outlook published in Q1 2019 in GWEC’s annual Global Wind Report.
From 2019 to 2023, the global wind energy market will grow at an annual rate of 4 percent, reaching a total capacity of over 900 GW by 2023. This growth rate means that an average of approximately an additional 14 GW will be added each year globally over the next five years compared to 2018 growth levels.
Karin Ohlenforst, director of Market Intelligence at GWEC said that although there was a decrease in the outlook for India and Germany due to their challenging market conditions including the execution of their auctioned capacity, the growth in other markets more than make up for this deficit. With China going subsidy-free by 2021 for onshore wind and the Production Tax Credit phasing out in the US, there will be an installation rush over the next two years in these two leading onshore markets.
“The forecasts for emerging markets in Latin America, South East Asia, Africa and the Middle East have all been increased as well due to positive market developments. Additionally, we must acknowledge the importance of offshore wind for driving growth, as it is set to take off globally over the next few years with a compound annual growth rate of 8% between 2019 and 2023, double that of onshore wind,” she said.
The report further revealed that through analysis of the developments of wind markets across the world, two main trends have been identified that will drive growth beyond 2023; the increasing share of so-called subsidy-free projects, and an increasing number of bilateral PPAs. Together, these two mechanisms will contribute to the cost competitiveness of wind energy and provide assurance for large-scale project development and the continued growth of wind energy globally.
Ben Backwell, CEO at GWEC said wind energy is now one of the most cost-competitive energy sources available, so it is no surprise we will continue to see volume growth as global energy demand continues to increase.
“On average, 60 GW of onshore wind and 8-10GW of offshore wind will be added worldwide until 2023. Even when we do not consider the two key growth markets of the US and China, we will still see installation growth levels similar to those of the 2009-2010 wind energy boom in the other markets and regions. Although this outlook is very positive, it is not enough to meet the renewable energy targets needed to keep global warming under 1.5°C. GWEC will continue to work with emerging markets to establish the necessary frameworks, such as auctions and tenders, to propel wind energy growth even further,” he said.