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Onshore wind is a proven, mature technology with an extensive global supply chain. Onshore wind has evolved over the last five years to maximise electricity produced per megawatt capacity installed to unlock more sites with lower wind speeds. Wind turbines have become bigger with taller hub heights, and larger rotor diameters. Offshore wind is expected to grow rapidly in the coming years as deploying turbines at sea takes advantage of stronger winds. Wire Rope Drum For Hoist
Wind and solar are the predominant sources of power generation in the Net Zero Emissions by 2050 Scenario, but annual wind capacity additions until 2030 need to increase significantly to be on track with the Net Zero pathway.
Reaching the levels of annual wind electricity generation foreseen in the Net Zero Scenario will require increased support for both onshore and offshore farms. Efforts should be focused on facilitating permitting, gaining public support, supporting the identification of suitable sites, decreasing costs and reducing project development timelines.
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In 2022 wind electricity generation increased by a record 265 TWh (up 14%), reaching more than 2 100 TWh. This was the second highest growth among all renewable power technologies, behind solar PV. However, to get on track with the Net Zero Emissions by 2050 Scenario, which envisages approximately 7 400 TWh of wind electricity generation in 2030, the average annual generation growth rate needs to increase to about 17%. Achieving this will require increasing annual capacity additions from about 75 GW in 2022 to 350 GW in 2030. Far greater policy and private-sector efforts are needed to achieve this level of capacity growth, with the most important areas for improvement being facilitating permitting for onshore wind and cost reductions for offshore wind.
China was responsible for half of global wind power capacity additions in 2022
Countries and regions making notable progress to advance wind electricity include:
Generation increased by a record amount in 2022, but much faster growth is needed to get on the Net Zero Scenario trajectory
The amount of electricity generated by wind increased by 265 TWh in 2022 (up 14%), the second largest growth of all power generation technologies. Wind remains the leading non-hydro renewable technology, generating over 2 100 TWh in 2022, more than all the others combined.
China was responsible for almost 40% of wind generation growth in 2022, followed by the United States at 22%. Generation in the European Union rebounded in 2022, increasing 14% after unusually long periods of low wind conditions in 2021.
Global wind capacity additions have decreased in the last two years, and in 2022 reached only two-thirds of the record level in 2020, which is expected to result in slower generation growth in 2023.
Aligning with the wind power generation level of about 7 400 TWh in 2030 envisaged by the Net Zero Scenario calls for average expansion of approximately 17% per year during 2023-2030. Policy support for wind power is increasing in major markets such as China, India, the European Union and the United States, but much greater efforts are needed to get on a pathway consistent with the Net Zero Scenario.
Onshore technology continues to dominate wind capacity growth, but offshore is increasing its share
In 2022, of the total 900 GW of wind capacity installed, 93% was in onshore systems, with the remaining 7% in offshore wind farms. Onshore wind is a developed technology, present in 115 countries around the world, while offshore wind is at the early stage of expansion, with capacity present in just 20 countries. Offshore reach is expected to increase in the coming years as more countries are developing or planning to develop their first offshore wind farms. In 2022, 18% of total wind capacity growth of 74 GW was delivered by offshore technology.
Global wind capacity additions in 2022 were 20% lower than in 2021, and 32% below the record 2020 growth. The slowdown resulted mostly from project commissioning delays in China related to lockdowns due to the Covid-19 pandemic and lower installations in the United States due to the phase-out of tax incentives. Wind capacity additions are expected to rebound in 2023 and further accelerate in the following years, driven by increased policy support in the United States and the European Union, and policy targets and high economic competitiveness in China. Offshore deployment is also expected to accelerate in existing markets, such as the European Union, the United Kingdom and China, as well as to enter new markets such as Japan, Chinese Taipei and the United States.
Getting on track with annual wind electricity generation of about 7 400 TWh in 2030, as envisaged under the NZE Scenario, will require increased support for both onshore and offshore installations. Efforts should be focused on facilitating permitting, supporting the identification of suitable sites, decreasing costs and reducing project development timelines.
Wind equipment manufacturing continues to expand slowly – an acceleration is needed to keep pace with expected demand under the Net Zero Scenario
In 2022, manufacturing capacity for the main wind power components (nacelles, towers and blades) remained mostly unchanged from the previous year at 110-120 GW. According to announced expansion plans, global production capabilities are expected to increase in line with anticipated demand in the next 3 years, resulting in approximately 120-140 GW of capacity. China is expected to remain the largest manufacturing hub for all main wind energy components in the medium term, with 60-80% share of global capacity.
Realisation of announced projects would bring global wind manufacturing capacity to only about one-third of what is required in 2030 to meet demand envisaged in the NZE Scenario. A rapid increase in co-ordinated efforts from both government and private stakeholders is needed to accelerate wind power deployment and manufacturing capacity investments.
Wind power technology development continues to focus on increasing productivity and lowering costs
Wind technology innovation is focused on increasing the productivity of turbines, especially in areas with low wind conditions, by developing turbines with longer blades and higher towers. However, the maximum height of onshore wind turbines is often restricted in certain regions for environmental and public acceptance reasons, which limits the scope of possible innovation.
In the offshore wind segment, in contrast, there is no such size restriction; innovation is therefore focused on designing larger turbines, which allow reductions in the overall cost of power generation. In parallel, the development of cost-competitive and safe floating offshore wind turbines is accelerating. Floating wind farms could unblock the vast potential of ocean areas with a water depth too great for fixed turbines and they could be a vital energy transition tool. Deep, relatively near-shore areas in France, Japan, Korea, Norway, Portugal, the United Kingdom and the west coast of the United States are expected to be the first to see large-scale deployment of this technology.
Policy support continues to be the main driver of wind power deployment
Policy support remains the principal driver of wind deployment in the majority of the world. Various types of policy are driving capacity growth, including auctions, feed-in tariffs, contracts for difference and renewable energy portfolio standards. The following important policy changes and targets affecting the growth of wind energy have been implemented in the past couple of years:
View all wind power policies
Wind power investments increased in 2022 by 20%, rebounding after 2021 slowdown
Investment in wind generation increased by 20% in 2022, returning to growth after a slowdown in 2021, and leading to expectations of significant capacity deployment in 2023. Investment reached a record USD 185 billion, the second largest among all power generation technologies (behind solar PV), and this is expected to grow further in the coming years thanks to ambitious government targets, policy support and high competitiveness.
Wind power is a part of all major renewable power collaboration programmes
Beyond global renewable energy initiatives that include wind (see Renewables page), there are numerous international organisations, collaboration programmes, groups and initiatives aimed at accelerating wind power growth around the world, including:
Private-sector activity remains a modest driver of wind power deployment
The main activity of the private sector in wind power deployment is entering into corporate power purchase agreements (PPAs) – signing direct contracts with wind power plant operators for the purchase of generated electricity. In 2022 wind farms were responsible for 30% of all renewable capacity contracted in PPAs.
Advancing the research, development and commercialisation of energy technologies
Onshore wind additions increase in our main-case forecast, from 74 GW in 2021 to 109 GW in 2027. Onshore wind additions are climbing most quickly in countries that have stable policy frameworks providing long-term revenue certainty, policies that address permitting challenges and plans for timely grid expansion. However, just a small number of countries, including China, Germany and Spain, have so far made improvements in all three areas.
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Lengthy and complicated permitting processes are one of the main challenges to faster deployment of wind power plants in many parts of the world, especially in Europe. Establishing administrative “one-stop shops”, developing clear rules and pathways for developers applying for a construction permit, determining strict timeframes for application processing, and public-sector engagement in the identification of land and sea sites for investment could significantly accelerate capacity growth.
Floating turbines offer the opportunity to tap into the richest offshore wind resources located in water depths exceeding 50-60 m, where seabed-fixed foundations are not practical. Floating foundations may also be attractive for mid-depth projects where the possibility of using standardised floating foundation designs could avoid the need for expensive, heavy-lifting vessels. Increasing funding for R&D activities, setting deployment targets and de-risking investment in the first commercial projects are required to accelerate full-scale roll-out of this promising technology.
Wind power generation creates well-known challenges for electricity grids and power systems through its variability and uncertainty and distributed nature. Wind power plants in many cases entail upgrades that contribute to their integration in the grid, but this contribution will need to be ramped up to align with the Net Zero Scenario through a combination of updated regulation and grid codes, and more innovative solutions for providing ancillary services and other services related to dispatchability.
Wind farm planning, both onshore and offshore, will require enhanced sensitivity assessment of the surrounding environment to ensure long-term turbine efficiency and attractive returns on investment. Public involvement in the identification of suitable sites for investment and the creation of clear maritime development plans could significantly accelerate the project development process and lead to faster capacity growth.
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