According to the Global Wind Energy Council annual report 2023, the wind sector may anticipate record installations in both onshore and offshore regions by 2025, with 680 GW of new capacity anticipated by 2027.The worldwide industry demands urgently increased investment, as the global wind study illustrates.
The US Inflation Reduction Act, increased ambition in Europe, continued rapid b uild out in China, and large developing countries accelerating their deployment are all anticipated to have an advantageous influence on the wind sector. According to GWEC’s mapping, both the US and Europe are likely to experience supply bottlenecks for turbines and components as early as 2025.
According to the council, the sector will install 1 terawatt, or 1,000 gigawatts, of wind energy this year, marking a significant moment. If authorities improve supply chain operations to satisfy the market and resolve licensing and other bottlenecks, the council stated, the 2-terawatt milestone should be reached in 2030. According to Council CEO Ben Backwell, “a meaningful reversal will commence in 2023.”
Highlights of India
Onshore wind is anticipated to surpass 100 GW in annual additions by 2024, while offshore wind will build more over 25 GW for the first time in a single year in 2025, and deployments will rise dramatically after that.
By 2030, India wants to develop more than 60 GW of onshore and close to 40 GW of offshore wind power. It also seeks to take advantage of supply chain possibilities, especially by leveraging the contribution of MSMEs to the Indian wind manufacturing base.
Since then, India, the second-largest Asia-Pacific (APAC) centre for turbine installation and the production of necessary elements, has taken a more significant place in the world’s wind supply chain.
India Aims to Reach 5 trillion
The goal is to have a 2025 USD dollar economy and a 15-fold increase in manufacturing GDP between 2021 and 2047. It also vowed to reach net zero by 2070. With 410 GW installed, renewable energy accounts for around 30% of India’s total implemented generation capacity for electricity, with 10% of this meeting the requirements from wind power.
According to the Central Electricity Authority (CEA) of India, the demand for Ex-Bus electricity will increase from 2021-2022 levels by 75% by 2031-2032 and by 170% by 2044-2046. By the beginning of the following decade, the need is anticipated to rise by even more than 90% in four of the eight states with the greatest wind speeds.
According to the Global Energy Outlook 2022, consumption is expected to quadruple between 2021 and 2050. The combined impact of economic growth, net-zero goals, and burgeoning electricity demand will result in a rapid increase in the share of renewable energy in the power generation mix. For wind power, India’s target is to achieve a cumulative 140 GW of capacity by 2030.
A wind-specific renewable purchase obligation (RPO) timeline to 2030 has been laid out by the Ministry of New and Renewable Energy (MNRE), with a yearly aim of an 8 GW onshore wind tender on an annual basis between 2023 and 2030 according to the single-stage two-envelope bid method. 8 strong winds state-Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Telangana-have enormous potential for wind electricity that will be channeled.
With the new 8 GW/year tender scenario, the annual increase has the possibility of achieving 5-6 GW by 2030. Nevertheless, the reduction in ISTS charge waivers from 50% to zero between 2026 and 2028 is projected to restrict installations to 4.5-5.0 GW. Half of the anticipated additions for the region-21 GW-will likely be added in India between 2023 and 2027 for onshore wind power.
Important Information in Global Point of View
- 2022 was the third-best year on record for new capacity additions, with 78 GW added globally. ● Globally, 68.8 GW of onshore wind ability was counted ○ 47% China (32.6 GW, up 6% YoY) ○ 24% Europe (16.7 GW, up 18% YoY) ○ 12.5% US (8.6 GW, down 32 YoY)
● Globally 8.8 GW of offshore wind capacity was estimated in 2022
○ New capacity was 58% lower than in 2021
■ (vs 21 GW in 2021)
○ Europe estimated 2.5 GW
■ Europe has now caught 30 GW of total offshore wind power
○ Asia-Pacific has now surpassed Europe as world’s biggest offshore market (34 GW)
● Floating wind continued to grow, with 66.4 MW capacity commissioned in 2022
Wind Market Outlook
● 2023 should be the very first year to exceed 100 GW of new capacity estimated globally
● GWEC Market Intelligence forecasts year-on-year expansion of 15% – an enormous growth rate compared to most other industries (it was forecast to be 6.6% last year)
● GWEC Market Intelligence forecasts 680 GW of new capacity in the next five years (2023-27)
● Latest annual offshore wind capacity will rise from 8.8 GW in 2022 to 35.5 GW by 2027
● GWEC Market Intelligence predicts an entire ability of 130 GW of offshore wind to be estimated by 2027. This represents 26 GW per year and a compound average growth rate (CAGR) of 32%
● GWEC Market Intelligence has an optimistic watchtower up to 2030, with an added 143 GW anticipated by the end of the decade, 13% more increased than previous predictions.
○ We earlier forecast 1078 GW to be created from 2022-2030, this is now indicated to be 1221 GW of new capacity added between 2023-2030.
● 2023 is a landmark year for the wind endeavor as it passes the milestone of 1 TW of total Wind Power capacity worldwide, a figure it has taken 40 years to advance. 2030 should be the year the world advances 2 TW of wind power ability, just seven years since the landmark foremost terawatt.
Quotes
Quote 1
“With an existing share of 11% in blade manufacturing, 7% in wind turbine generator, and 12% in gearbox manufacturing, India stands at a unique position to further strengthen its position in the global wind supply chain. However, any restrictive trade policies in India or in other regions that mandate complete localization may lead to price surges and supply chain disruptions. To be able to meet national, regional, and global climate action goals, building on regional competitive advantages shall foster healthy growth in the wind energy sector as compared to restrictive policies.
“Facilitative policy measures continue to redefine opportunities for the wind sector in India. After a slowdown in the past few years, the centre has announced plans to tender 8 GW of onshore wind projects annually in this decade and exploit wind energy potential across states. At the same time, a fast pace of progress in offshore wind preparedness has been made by India. Indian agencies have forged partnerships with international institutions for the development of a series of technical, policy, and supply chain reports. All of these will have to be backed by robust supply chain investments and planning so that both domestic demand and export opportunities are met.
“A growing likelihood of global supply chain crunch amid expanding ambitions in mature as well as in emerging markets signals need for urgent investments in the supply chain to avoid slowdown of clean energy transition interventions. India must leverage this time to boost its manufacturing capacities by catalysing domestic demand as well as incentivising exports.”
Quote 2
The sleeping wind power giant of India seems set to pick up the pace and make the country a wind energy powerhouse – Ben Backwell, CEO, GWEC
Quote 3
Global Wind Energy Council (GWEC) has released an annual report on Wind Energy, let’s have a look at the report from India perspective. COP27 may have concluded with the target of 1.5C in critical condition, but the global commitment to renewable energy is stronger than ever. – Morten Dyrholm Chairman, GWEC