The global wind power sector will install 330 GW of new power in the next 5 years.
The global wind farm will grow over the next five years (2019-2023) 330 GW, as announced by the Global Energy Council (GWEC) in its GWEC’s Market Outlook report. The total global capacity that wind power will reach by then will be over 900 GW, and the countries that will lead that growth will be the United States and China.
From 2019 to 2023, the global wind energy market will grow at an annual rate of 4% until 2023. This growth rate means that an average of approximately 14 GW more will be added each year globally over the next five years compared to 2018 growth levels.
The study of GWEC indicates as main causes of this wind development the continuous decrease in costs that the entire supply chain of this industry is experiencing and the good reception that the market mechanisms that have been imposed in recent years are having in the sector years, such as auctions, contests or bilateral purchase agreements (power purchase agreement, PPA). GWEC believes that this growth model – free of subsidies – has accelerated the competitiveness of wind solutions, as well as bilateral long-term electricity sales contracts (PPAs) are injecting predictability and security into large-scale projects, all which would be promoting the improvement of growth forecasts.
Karin Ohlenforst, director of market intelligence at GWEC, has indicated that “ although there was a decline in the outlook for India and Germany due to challenging market conditions, including the execution of its auctioned capacity, growth in other markets compensates with You grow this deficit. ”
The main markets that will drive this increase in volume are the Chinese and US offshore wind markets, which will experience an increase in facilities in the next two years of 10 GW and 6.5 GW, respectively, on the first quarter market perspective of 2019. In addition, forecasts for emerging markets in Latin America, Southeast Asia, Africa and the Middle East have also increased due to positive market developments.
The GWEC report emphasizes the importance of the growing role of offshore wind energy in the global energy transition, as it will help boost overall growth, representing approximately 18% of total wind power capacity by 2023, compared to 9% in 2018.
Ben Backwell, CEO of GWEC has said that ‘’ wind energy is now one of the most profitable energy sources available, so it is not surprising that we continue to see volume growth as global energy demand continues to increase. On average, 60 GW of offshore wind energy and 8-10GW of offshore wind energy will be added worldwide until 2023. Even when we do not consider the two key growth markets – US and China -, we will still see similar installation growth levels to those of the wind power boom in 2009-2010 in other markets and regions. ”