GWEC | GLOBAL WIND REPORT 2023

GLOBAL WIND ENERGY COUNCIL

Leading Sponsor

Supporting Sponsor

Associate Sponsors

4/02/11 15:40:22

GWEC.NET
Table of contents
Foreword 3
Executive summary 7
Wind energy: The coming renewables acceleration 13
Part One: A new energy market 17
Part Two: Challenges in the supply chain 23
Part Three: The risks and opportunities of regionalisation 33
Part Four: The IRA is set to turbocharge the US wind sector 41
Part Five: How Europe plans to rise to the challenge 47
Part Six: Will China continue to be the market leader? 51
Part Seven: How to achieve a just transition 57
Case studies 63
Focus on offshore wind 69
Markets to watch 83
Market Status 2022 91
Market Outlook 2023–2027 103
Appendix 111

GLOBAL WIND ENERGY COUNCIL

Global Wind Energy Council Muchiri, Thoa Nguyen, Liming Qiao, Marcela Ruas, Association, Renewable Energy Institute – Japan, We received valuable review and commentary
Rue de Commerce 31 Martand Shardul, Thang Vinh Bui, Nadia Weekes, Korea Wind Energy Industry Association, China for this report from
1000 Brussels, Belgium Rebecca Williams Wind Energy Association, Developers of Renewable •Rina Bohle Zeller (Vestas)
info@gwec.net Energy for AdvanceMent (DREAM) – Philippines, •Dan Wetzel (IEA)
www.gwec.net
Additional contributions Thailand Wind Energy Association, Mongolian
Asociación Mexicana de Energía Eólica, Asociación Renewable Energy Association, Indonesian Front cover image courtesy of Vestas
Costarricense de Productores de Energía, SER Renewable Energy Society (METI), Iran Renewable
Lead Authors
Colombia – Asociación Energías Renovables, Energy Association – IRWEA, Electricity Sector Published
Mark Hutchinson, Feng Zhao
Associação Brasileira de Energia Eólica e Novas Association of Kenya, South African Wind Energy 27 March 2023
Contributors and editing Tecnologias (ABEEólica), Camara Eólica Argentina, Association – SAWEA, Clean Energy Council
Ben Backwell, Emerson Clarke, Esther Fang, Ramón Asociación Peruana de Energías Renovables – SPR, (Australia), American Clean Power, Canadian Design
Fiestas, Jeanette Gitobu, Navneet Khinda, Reshmi Asociación Chilena de Energías Renovables y Renewable Energy Association − CanREA, lemonbox
Ladwa, Anjali Lathigara, Wanliang Liang, Wangari Almacenamiento – ACERA, Japan Wind Power WindEurope. www.lemonbox.co.uk

GWEC | GLOBAL WIND REPORT 2023 1
 Foreword

Word from the Chairman

COP27 may have concluded with Delivering to this demand requires projects and healthy supply chains.
the target of 1.5C in critical stronger supply chains across the
condition, but the global renewables industry – just at a time In the current environment, prices
commitment to renewable energy when supply chains are threatened are often pushed to their minimum,
is stronger than ever. Meeting the by inflation, rising interest rates, while technical and sustainability
objectives of the Paris Agreement geopolitics and bottlenecks. requirements increase costs in
calls for us to halve global parallel. Renewables depend on a
greenhouse gas emissions by Investments in wind in 2022 skilled workforce, access to raw
2030. That’s less than seven years decreased in Europe, the Americas, materials, infrastructure and
to replace swathes of high- the Middle East and Africa. The only low-cost financing. Morten Dyrholm
emission technologies with zero- or exception was the Asia-Pacific Chairman, Global Wind Energy Council
low-carbon alternatives. In terms of region. This marks a paradox Most market outlooks forecast an
energy, this means leaving behind during a period when various imminent increase in demand for
a traditional system designed crises are disrupting energy renewables. Policymakers in major
around fossil fuels and installing a security and climate deadlines are renewable energy markets have It is time for governments to realise
new one – as fast as we can. drawing closer. Wind energy has begun to address the current that serious climate change
never been more needed: it builds challenges by supporting the mitigation and sustainable energy
Aiming for 61% of total electricity energy security, lowers the cost of companies that will be driving the security go hand in hand.
generation to come from electricity and supports renewables scale-up. Governments must also accept that
renewables by 2030, the IEA decarbonisation. Last year’s a thriving renewables industry is
estimates that renewable energy investment trends exemplify how The USA’s Inflation Reduction Act, the first step to addressing both.
capacity will have to triple, and that faster political action is now critical. Europe’s Green Deal Industrial Plan Decarbonisation is too big a
most of this growth is to come from and China’s Five-Year Plan are all challenge for one country or
wind and solar PV. 1 This year is crucial for clear examples of increasing region alone to overcome: only by
strengthening the supply chains political momentum. This welcome working together can we unlock
Scaling up renewable energy is that bolster renewable energy. news can bring concerning the acceleration needed to achieve
key to the energy transition. Healthy industries require thriving underlying issues with it. The global a clean energy transition. GWEC
Beyond the installation of markets. At present, permitting and wind industry’s strength is its global and its members have an
renewable power, this also means grid bottlenecks are limiting footprint. Opening a subsidy race in important role to play in
installing transmission lines, volumes to a crippling degree. support of loosely defined clean supporting sound policies,
building grids and storage Profitable companies must be able energy transition technologies collaboration and action. I look
solutions, and rolling out to set cost-covering prices. Policies while increasing protectionism forward to doing just that.
technologies that enable system must seek a balance between would come at a huge cost – to
flexibility. cost-competitive electricity, viable industries and societies. 1. https://www.iea.org/reports/world-energy-outlook-2022

2 GWEC.NET
 Foreword

We must invest in supply chain

to build the next TW
The coming years will mark a While the industry pushed through All this has come at a time when
crucial transition period for the the new level of 100 GW of annual policymakers are racing to
global wind industry. Later this installations in 2021, the last few address the energy and climate
year, wind energy will reach the years have not been without their crises by dramatically increasing
historic milestone of 1 TW of challenges. Many of the their targets for wind energy
installed capacity. It has taken us manufacturers at the heart of the across the world.
around 40 years to get here. industry have seen mounting Ben Backwell
financial losses caused by ‘race to The situation, however, is about to CEO, Global Wind Energy Council
However, the next TW will take the bottom’ pricing, as a result of change and 2023 will mark the
less than a decade. The energy misguided government policies start of a decisive turnaround.
and climate policies now being around procurement and offtake Governments of all the major
pursued by the world’s largest arrangements, exacerbated by industrialised nations have enacted
economies in both the ‘West’ and higher inflation and logistics costs. policies that will result in a economies such as Vietnam and
the ‘Global South’ point to a Meanwhile, wind projects have significant acceleration of the Philippines are enacting new
whole new level of ambition and been delayed or stalled by deployment. plans for wind, the sleeping wind
support for wind energy and inadequate and inefficient power giant of India seems set to
renewables. permitting and licensing rules, In the US, the Inflation Reduction pick up the pace, and Brazil will
from Denmark to India to Japan Act has completely changed the continue to establish itself as a
These policies are likely to take us and beyond. rule book for both onshore and wind energy powerhouse.
to 2 TW of installed wind energy offshore wind, while in the EU,
by the end of 2030. They are the This has created the bizarre policymakers are racing to By 2024, GWEC expects onshore
consequence of growing urgency paradox of energy markets introduce new rules and wind to pass the 100 GW annual
in the fight against dangerous rewarding fossil fuel companies regulations to enable the huge installations mark, while offshore
global heating; prolonged high with record profits, while renewable increase in deployment that the wind will install more than 25 GW
fossil fuel prices and the impact of energy companies have struggled REPowerEU plan foresees. In in a single year for the first time in
fossil fuel dependence on security; to break even. As this report shows, China, unstoppable momentum 2025, and installations will
and the success of our industry in while companies have regrouped behind the energy transition accelerate rapidly after that.
scaling up and establishing wind to adapt to the new inflationary continues, and the end of
as one of the most cost-competitive pressures, the market has stalled, COVID-19 restrictions will see the Market conditions will change, as
and reliable power sources in the and the industry installed only 77.6 return of faster economic growth. countries and regions will have to
world. GW in 2022. Large emerging market compete for badly needed

GWEC | GLOBAL WIND REPORT 2023 3
 Foreword

investment in their wind sectors: inputs for the energy transition, facilities, from South Korea to the
who gets the investment will fosters innovation and keeps costs US to Poland.
depend on who has the most from rising unnecessarily.
attractive market conditions and Much more is needed, and fast.
the most efficient regulators. For In order to ensure that the wind The wind industry will need to
power equipment – and this industry is able to meet the forge new partnerships with
includes key commodities such as expectations of policymakers and governments, cities, communities,
copper and rare earth elements society at large, it is essential that we investors and customers in order to
(REEs), power transmission start investing in new capacity and enable the next era of growth.
equipment, wind turbines and
offshore installation vessels –
market dynamics are likely to The wind industry will need to forge new
change from buyers’ to sellers’
markets as supply chains struggle
partnerships with governments, cities, communities,
to keep up with demand. investors and customers in order to enable the
According to the data in this Global next era of growth
Wind Report 2023, spare capacity
in the wind energy manufacturing
industry is likely to disappear by plant, and in training and skills, right Working together, we can put into
2026. For some inputs and in some now. Otherwise, we run the risk that place the right policies, which will
regions, the squeeze will be felt we will not be able to deliver our allow trillions of dollars in
before then. Both Europe and the promises, policymakers will turn to investments to flow and the
US are facing the risk of supply other, less efficient alternatives, and creation of millions of jobs.
chain shortfalls, and these could society will fail in its climate goals.
be worsened by policies aimed at As a starting point, we need to
reshoring manufacturing away This may sound counterintuitive in leave the hesitancy of the past
from China and protecting local an environment where companies behind and adopt a new mindset in
industry and jobs. have found it difficult to keep their our industry. The wind industry is
businesses viable, but it is a no longer the hobby sector of forty
As this report shows, while creating challenge we cannot ignore. years ago. Our technology is
more diversity and resilience in the Thankfully, the sector’s leaders resilient and mature, and is poised
supply chain is an important and can see the opportunity ahead, to play a unique role in the energy
necessary objective, decision and companies are already transition. Now, in order to deliver
makers will have to design policy investing – despite the highly on the promises we have made, we
very carefully to make sure that it unfavourable conditions of the last need a confident wind industry that
allows the fair exchange of essential few years – in new manufacturing is capable of moving boldly ahead.

4 GWEC.NET
 Foreword

Brazil’s wind power revolution

In Brazil, we are living in a time of more than 170 GW of offshore countries that may not be able to
great excitement and renewed wind energy. This number is produce all the renewable energy
hope in our potential and in the equivalent to practically the entire they will need to meet their energy
future. The new government of Brazilian electricity matrix and transition goals.
President Luiz Inácio ‘Lula’ da Silva shows the extent of investor
is resuming work on key issues appetite and the enormous Brazilian companies and state
that were abandoned in recent potential for offshore wind in governments have taken important
years, such as the fight against Brazilian waters. steps towards the creation of a
climate change, protection of the green hydrogen sector for the
environment – especially the There is not enough demand for country, including agreements to Elbia Gannoum
Amazon – and the reduction of that amount of electricity, however. invest more than 200 billion USD. In President of ABEEólica, Brazil’s
wind energy and new technologies
social inequalities. These are That’s where green hydrogen January, EDP produced its first association, and GWEC Vice Chair
matters dear to the wind sector, comes into play. Coupling this green hydrogen molecule in Brazil
which positively impacts society technology with the enormous and Unigel will have its first
from an environmental, social and potential for offshore wind could hydrogen and green ammonia
economic point of view. consolidate Brazil’s standing as a production plant in commercial decarbonisation and net zero in
renewable energy superpower operation by the end of 2023. From many Brazilian industry sectors to
The Brazilian wind power building on its already advanced 2050, according to the consultancy become a reality.
revolution has been under way for wind energy supply chain and Roland Berger, Brazil could derive
some years now. The industry wider industrial and maritime annual revenues of 150 billion BRL We know this is a long road, but
achieved 25.6 GW of installed capabilities. from green hydrogen, of which 100 we are also certain that we are on
capacity in 2022, with wind energy billion BRL would come from the right track. The Brazilian wind
now holding a firm position as one The renewable resources available exports alone.1 energy revolution is already here
of Brazil’s strongest energy in Brazil, especially its abundance for all to see – and will continue
generation sectors. In addition to of quality wind both onshore and What we are seeing, therefore, is to gain strength. It is just a matter
the continued growth of onshore offshore, are certainly unique in the an industry that is already here and of time and dedicated work by
wind, we have great expectations world. This opens a window of ready to grow rapidly, especially the government, investors,
for the development of Brazilian opportunity for the production of considering the opportunities for companies and professionals in
offshore wind. green hydrogen, which would have domestic demand. Currently, Brazil the sector. Let’s all work together
the capacity not only to uses fossil-fuel hydrogen in its to continue putting the wind in
IBAMA, the Brazilian Institute for revolutionise Brazil’s energy matrix fertiliser, refining, chemical, food Brazil’s sails.
the Environment and Renewable – already one of the most and metallurgy industries.
1. https://valorinternational.globo.com/business/
Natural Resources, has already renewable in the world – but also Replacing this with green news/2023/01/22/bårazil-has-potential-to-be-largest-
received project proposals for to export green hydrogen to other hydrogen would allow producer-of-green-hydrogen-study-shows.ghtml

GWEC | GLOBAL WIND REPORT 2023 5
 Sponsor

Transforming the supply chain

for the industry of the future
As the global wind industry focuses With the race to wind turbines of 20+ infrastructure, Lincoln Electric sees
on solving the supply chain MW accelerating, the offshore wind the global industry through a
challenges ahead for the expansion supply chain of the future will need to unique lens. Key to unlocking the
of offshore and onshore wind, there produce at elevated levels, higher full capacity of the supply chain is
are tremendous accomplishments than ever before. However, it is clear innovation, together with new
already achieved. The that the present levels of investment installation methods, designs and Christopher L. Mapes
transformation of steel into the key commitment across the entire supply advanced technology that can Chairman, President and Chief Executive Officer,
components of the energy chain still fall well short of what is drive the profitable success of the Lincoln Electric

transition is already well under way, required for the global industry to hit industry. Additionally, the
supported by record new installed capacity targets. continuous development of a highly and development. Together, these
investment commitments. skilled workforce will be critical, as critical initiatives will advance the
The supply chain of the future well as the implementation of growing global needs for a highly
needs rapid expansion – in line higher levels of automation skilled workforce that can support
The supply chain needs rapid with the ambitions of its main solutions, which can reduce project the ambitions of industry and
expansion – in line with the stakeholders. This is why GWEC’s hours and overall costs. countries around the world.
Global Wind Report 2023 is even
ambitions of stakeholders more crucial, highlighting a Today’s industry leaders know that Building on earlier success in
number of key actions necessary new technologies for steel offshore wind across Europe – and
From new steel plant capacity, in both the short and long term. transformation will play a critical now the rapid expansion in Asia
planned or already online, to pipe role in profitability, particularly in and the Americas – the future of
mills, shipyards and regional While there are many pieces of welding and cutting, which the wind industry depends on the
fabricators around the world, these encouraging news across the continues to be at the core of the combined efforts of many. The
new industry investments are global supply chain, there are also expanding global wind industry. industry needs continued support
driving one of the most rapid several practical challenges to Lincoln Electric and other critical from governments and private
global industrialisation periods we overcome if we are to accelerate supply chain businesses are investment around the world for
have seen. The outcome of this capacity to meet the installed leveraging decades of industry further acceleration and
process will enable the world to targets forecast around the world. expertise and experience to expansion of the supply chain. By
build and install turbines, towers innovate and solve these critical aligning these resources with a
and foundations (fixed-bottom and As a key global supplier who challenges through two key growing role for wind as a key
floating) of immense size, never supports the entire fabrication drivers: technology and higher part of the energy transition, the
before realised. supply chain of assets and involvement in workforce training industry will thrive.

6 GWEC.NET
EXECUTIVE SUMMARY
 Wind in 2022

The Data: 2022 was the wind industry’s

third-best year
Nearly 78 GW of wind power constraints and grid 2021 – a record year driven by
capacity was added last year, the interconnection issues. the end of the feed-in tariff (FiT).
lowest level in the past three Two other markets reported new
years but still the third highest Thanks to record installations in offshore wind installations in APAC
year in history. This was achieved Sweden, Finland and Poland – and last year: Taiwan (1,175 MW) and
despite a challenging economic recovering installations in Germany Japan (84 MW). No intertidal
environment and a disrupted – Europe performed well in a (nearshore) wind projects
Feng Zhao global supply chain, volatile 2022, adding a record 16.7 achieved commercial operation in
Head of Strategy and compounded by global health GW of onshore wind capacity and Vietnam in 2022, due to the
Market Intelligence, GWEC
and energy crises. bringing its market share up to ceiling price to be used by
24%. Onshore wind additions in Vietnam Electricity (EVN) to
Market status North America last year fell by 28% negotiate PPAs with investors for
Globally, 77.6 GW of new wind while new additions in Asia-Pacific their renewable projects missing
power capacity was connected to (APAC) remained constant, but the until January 2023.
power grids in 2022, bringing total three regions combined still made
installed wind capacity to 906 GW, up 92% of global onshore wind Europe connected the remaining
a year-on-year (YoY) growth of 9%. installations in 2022. 2.5 GW of capacity in 2022, with
France and Italy each
The onshore wind market added 8.8 GW of new offshore wind was commissioning their first
68.8 GW worldwide last year, with fed into the grid last year, bringing commercial offshore wind projects.
China contributing 52%. Additions total global offshore wind capacity Despite the rate of installations last
were 5% lower than the previous to 64.3 GW by the end of 2022. year being the lowest since 2016,
year. The slowdown in Latin New additions were 58% lower Europe’s total offshore wind
America, Africa & the Middle East than the bumper year of 2021 but capacity reached 30 GW, 46% of
is partly responsible for the still made 2022 the second highest which is from the UK.
decline, but the primary reason is year in history for offshore wind
falling installations in the US. installations. With total installed offshore wind
Despite finishing the year with a capacity reaching 34 GW in APAC,
strong final quarter, the US wind China continued to lead global in 2022 Europe relinquished its title
industry commissioned only 8.6 offshore wind development, as the world’s largest offshore wind
GW of onshore wind capacity in although its new installations market. Nevertheless, Europe
2022, due in part to supply chain dropped to 5 GW from 21 GW in continues to lead the way with

8 GWEC.NET
 Wind in 2022

floating wind. Norway l A strong uplift for renewable The global offshore wind market is
commissioned 60 MW of floating energy in the US over the next expected to grow from 8.8 GW in
wind capacity last year, bringing ten years, primarily driven by the 2022 to 35.5 GW in 2027, bringing
the region’s total installations to 171 Inflation Reduction Act (IRA). its share of total new global
MW, equal to 91% of global installations from today’s 11% to
installations. l  hina’s commitment to further
C 23% by 2027. In total, 130 GW of
expanding the role of offshore wind is expected to be
Market outlook renewables in its energy mix, added worldwide in 2023-2027,
The unprecedented twin aiming for renewable energy to with expected average annual
challenges of ensuring secure and contribute more than 80% of total installations of nearly 26 GW.
affordable energy supplies and new electricity consumption by
meeting climate targets have the end of the 14th Five-Year Beyond 2027, we expect the growth
propelled wind power Plan (2021-2025). momentum to continue as global
development into an extraordinary commitments to net zero, coupled
new phase of ever faster growth. l  overnments fully waking up to
G
After a challenging year, the global the opportunities that offshore
wind market is ready to bounce wind can provide, making The twin challenges of secure energy supplies and
back in 2023, exceeding 100 GW offshore wind truly global and
for the first time. increasing ambition in mature climate targets will propel wind power into a new
and developing markets. phase of extraordinary growth
With a double-digit growth rate of
15%, the mid-term outlook for wind l Strong growth in large emerging
energy looks very positive. GWEC markets both onshore and offshore
Market Intelligence expects that from the middle of this decade. with growing energy security capacity required by 2030 to stay
680 GW of new capacity will be concerns, have already brought the on track for a net zero/1.5C
added in the next five years. This The CAGR for onshore wind in the urgency of deploying renewables pathway. Nevertheless, GWEC
equals more than 136 GW of new next five years is 12%. Expected to the top of the political agenda. believes that the milestone of a
installations per year until 2027. We average annual installations are second TW is likely to be passed
believe there are five pillars that 110 GW, with a total of 550 GW Compared with the 2030 global before the end of 2030 – provided
will underpin this level of success likely to be built in 2023–2027. outlook released alongside last governments implement new
in the next five years: Growth in China, Europe and the year’s Global Wind Report, GWEC policy solutions to ensure that the
US will be the backbone of global Market Intelligence has increased global supply chain can meet
l  urope’s renewed urgency to
E onshore wind development in the its forecast for total wind power increasing demand from both
replace fossil fuels with next five years. Altogether, they are capacity additions for 2023–2030 established and emerging markets
renewables to achieve energy expected to make up more than by 143 GW (YoY growth of 13%). – in addition to addressing
security in the aftermath of the 80% of total additional capacity in The revised growth rate will only challenges such as permitting and
Russian invasion of Ukraine. 2023–2027. achieve 68% of the wind power market design.

GWEC | GLOBAL WIND REPORT 2023 9
 Policy summary

The Story: the wind industry gears up

for the coming acceleration
By mid-2023 GWEC anticipates sharp turnaround this decade, and unrelenting drive to cut costs, the
wind energy to achieve the highly it is starting now. wind industry now needs a laser-
symbolic milestone of 1 TW in sharp focus on ensuring that it can
operation. And the 2 TW mark is A sluggish 2022 saw only 77.6 GW deliver the ambitious installation
expected to arrive by 2030, of additional wind capacity targets required of it.
closing a decade of tumultuous installed globally – 17% lower than
acceleration. the previous year but still the third Renewables will dominate
highest year in history for installations
The sector has changed beyond additions. Offshore additions, at 8.8 Under all credible scenarios,
recognition over the past four GW, were less than half the 21 GW renewable energies will dominate
decades. Long gone are the days clocked in 2021, and yet the installations over the coming years.
of wind installation clusters in a second highest volume ever. The IEA forecasts that nearly all of
handful of European countries and the additional electricity generated
a few US states. Wind power has a Despite the relatively positive wind between 2022 and 2025 will come
growing presence in tens of installation numbers, 2022 was the from renewable energy sources.
countries worldwide. The surge of year when a perfect storm of ‘race Alongside solar, wind will remain a
offshore wind and innovative to the bottom’ pricing caused by leading source of renewable
technologies such as floating misguided government policies, power.
foundations promise to deliver higher logistics costs and project
large amounts of wind energy in delays due to inadequate By 2024, GWEC expects onshore
locations where its deployment permitting rules created the wind to pass the 100 GW annual
would have been unimaginable bizarre paradox of energy markets installations mark, while offshore
until very recently. rewarding fossil fuel companies wind will install more than 25 GW in
with record profits, while a single year for the first time in
The stakes could hardly be higher renewable energy companies 2025. Installations will accelerate
for wind energy as the world struggled to break even. rapidly after that, driven by most
strives to emerge from the countries’ ambitious green energy
‘polycrisis’ of post-pandemic Change has altered the dynamics and climate targets. GWEC forecasts
recovery, inflationary pressures, a of the wind industry too. From an that 680 GW of wind capacity will be
war in Europe and growing climate early obsession with installed globally by 2027, of which
impacts. But all the signs point to a demonstrating reliability to an 130 GW will be offshore.

10 GWEC.NET
 Policy summary

As our heat map (see page 82) already mobilising massive economic development and job demand up to 2027. But the picture
shows, there are still tens of investment in renewable creation over a narrow focus on is less rosy for offshore wind.
countries where wind power generation, decarbonised achieving the lowest possible Starting in 2026, Europe’s existing
development is being held back transport, energy storage and price. offshore turbine nacelle assembly
by regressive policies or improved grid connections. In capacity will no longer be able to
ineffective processes. Increasingly, Europe, the REPowerEU By adopting this high-level support growth outside of Europe,
however, governments are eyeing programme seeks to wean the mindset, governments will allow and by 2030 it will have to double
up the vast opportunities that continent off Russian gas while wind power original equipment from current levels to meet
facilitating this sector opens up in removing obstacles to green manufacturers (OEMs), developers, European demand alone.
terms of industrial development, energy deployment. And approval shipping companies and other Elsewhere, nacelle bottlenecks look
skilled jobs and socioeconomic of China’s 14th Five-Year Plan , actors in the supply chain to invest, likely in Asia (excluding China) and
returns, as well as environmental covering the 2021–2025 period, ensuring an optimal balance in the Americas, especially once the
benefits. turbocharges innovation-driven between supply and demand, and pipeline of Brazilian projects starts
low-carbon development, with delivering benefits for all. being rolled out.
Investing to boost wind GWEC estimating annual wind
development installations of 60–65 GW per year Facing up to the size of the
Wind energy has established its for onshore and 15 GW for challenge
credentials as one of the most offshore in the second half of this Gearing up to deploy huge Spare capacity is limited and will
efficient tools for decarbonising
power systems. Failing to deploy
decade. volumes of wind power capacity is
a far from straightforward task.
likely disappear by 2026 unless
wind fast enough risks increasing While these policies are providing Adding 1 TW in seven years, when urgent investment is made in the
costs through greater exposure to a welcome boost to local industry it took around 40 years to install the
fossil fuel volatility, geopolitical and promising long-overdue action first TW, is no mean feat.
supply chain
pressure and higher carbon to reduce some of the complex
emissions. Socially, wind power has rules associated with wind energy Following a difficult patch of
the potential to benefit development, they could also retrenchment, the wind energy Shortages are expected to emerge
communities by creating millions threaten the sector’s ability to rise manufacturing industry is now in the second half of this decade for
of skilled jobs around the world. to the acceleration challenge. facing the prospect of a rapid key components such as blades and
Economically, it can act as a upturn. Spare capacity is very generators. Gearbox manufacturing
catalyst for trillions of dollars of Growing demand for equipment limited, and likely to disappear by capacity is well positioned to
investment. and the key commodities that are 2026 unless urgent action is taken support growth up to 2027, but a
required to produce it will place to invest in the supply chain. concentrated supply chain and
Heavyweights such as the US and significant pressure on supply regionalised sourcing strategies
the EU have ramped up chains. It is essential that Our analysis in Part 2 shows that 163 look certain to create bottlenecks.
government support for wind policymakers approach GW of nacelle production capacity
energy. The Biden administration’s procurement with a more holistic is available worldwide, which is China dominates the global supply
Inflation Reduction Act (IRA) is perspective that prioritises likely to meet projected global chain for other crucial components

GWEC | GLOBAL WIND REPORT 2023 11
 Policy summary

In sum, both Europe and the US local supply of critical inputs for collaboration and the scaling up of
are facing the risk of supply chain their industries, including steel investment everywhere.
shortfalls as soon as 2026, products and raw materials such Policymakers must come together
particularly if they follow through as rare earth elements (REEs). This to design mechanisms that make
with some of the ‘reshoring’ has the potential to severely limit the relevant inputs for the energy
policies that several countries and the industry’s capability to upscale. transition freely available around
regions are rolling out to the world.
strengthen energy resilience and When considering the localisation
boost local industry. or reshoring of their energy sector, Policymakers have the power to
governments have choices: they avoid the crippling bottlenecks that
Supply chain pressures will alter can use incentives or preferential are likely to arise if supply chains
market dynamics treatment for domestic suppliers or do not rise to the challenge of the
Paradoxically, just as renewable reserve the procurement of certain growing demand for equipment.
energy proves itself as the most goods or services for them. But they must ensure they engage
cost-effective form of energy and in early and open dialogue with
the one best insulated from the GWEC advises against industry to ensure that policy goals
vagaries of geopolitical pressures, prescriptive localisation and industry action are aligned. If
wind energy runs the risk of seeing requirements or restrictive trade designed properly and
its progress thwarted by the practices, which could lead to comprehensively, policies
practical implications of untapping price increases and disruption. It designed to enable the scaling up
its immense growth potential. argues instead for flexibility that of the supply chain and its
such as castings, forgings, slewing can build on national and diversification represent a huge
bearings, towers and flanges, with As countries and regions compete regional competitive advantages, opportunity for the world.
a market share of more than 70%. for investment, the winners will be giving OEMs and the supply
those with the most attractive market chain more flexibility in For the wind industry to meet the
Vessels used in offshore conditions and the most effective optimising their production. An expectations of policymakers and
installations are expected to be in regulation. Policymakers must tread incentive-based approach will society at large, it is essential that
sufficient supply in China, but the narrow path that enables an also give the wind industry the investment starts right now in new
Europe could see shortages adequate level of trade to ensure the confidence to overcome recent industrial capacity, and in training
towards the end of the decade, energy transition is not delayed challenges and begin to scale up and skills. In the absence of such
unless investments are made while boosting opportunities for for the next phase of global impetus, the industry runs the risk
before 2027. And the US, with its their domestic supply chains. growth. of falling short of what is required
Jones Act restrictions, will certainly to deliver the necessary capacity,
struggle to meet the Biden Efforts to boost energy security The scale of the investment and leading policymakers to turn to
Administration’s target of 30 GW of and strengthen the local economy production needed to achieve the less efficient alternatives, and
offshore wind by 2030 unless it have led some countries to reach energy transition will require ultimately causing society to miss
acts to build new vessels. beyond manufacturing to achieve continued global and regional its climate targets.

12 GWEC.NET
WIND ENERGY: THE COMING ACCELERATION
 The coming renewables acceleration

The coming renewables acceleration

The prolonged period of high society in general and New installations outlook 2022–2026 (GW)
energy prices the world policymakers in particular. The
experienced in the aftermath of the drive towards lowering emissions Onshore
COVID-19 pandemic, sharply and prioritising sustainability Offshore 157
exacerbated by the Russian continues to gather momentum. CAGR 15% 150
invasion of Ukraine, has exposed the 135 36
125 32
fact that we are suffering a deep The past year has seen
energy crisis. This is a consequence governments around the world 115 26
18
of a patchy and delayed energy take unprecedented steps to 18
transition, which has left energy speed up the energy transition and
markets vulnerable to volatile fossil wean their economies off their 78
fuel supply – much of which is dependence on fossil fuels. 9
driven by political agendas and Whether through the Inflation
anti-competitive practices. Reduction Act in the US, the 69 97 106 109 117 122
REPowerEU program in the EU or
As well as exposing consumers enhanced national plans, the policy
and industry to high energy prices, environment has evolved quickly
the crisis has been a significant over the past 12 months. This in
contributor to the return of inflation turn has led to countries and
as the major challenge for the regions setting new, highly 2022 2023e 2024e 2025e 2026e 2027e
world’s economy. Meanwhile, the ambitious targets for renewable Source: GWEC, 2023
impacts of accelerated global energy and for the phaseout of
heating are becoming ever clearer fossil-based technologies in of the 2,518 TWh of electricity increasingly large role with
at the same time as countries generation, transport and industry. generation to be added between projected global additions of more
continue to delay taking the actions 2022 and 2025.1 than 60 GW between 2023 and
needed to achieve the emissions The leading intergovernmental 2025, and 68 GW in 2026–2027.
trajectory outlined in the Paris energy agencies agree that GWEC expects 680 GW of wind
Agreement. renewable energy – and the two capacity to be added globally Wind energy is expected to achieve
leading technologies of wind and between 2023 and 2027, of which the milestone of 1 TW of installed
However, the current ‘polycrisis’ solar especially – will dominate 130 GW will be offshore. Onshore capacity by the middle of this year.
has not gone unanswered by electricity demand growth in the wind in China will continue to lead In a recent report, BloombergNEF
coming period. According to the installations with 300 GW, followed (BNEF) forecast that, having taken 33
1. https://www.iea.org/reports/electricity-market-
report-2023
International Energy Agency, by Europe with nearly 100 GW. years to reach 1 TW, wind will deliver
2. https://about.bnef.com/new-energy-outlook/ renewable energy will provide 98% Offshore wind will play an close to another TW by 2030.2

14 GWEC.NET
 The coming renewables acceleration

Policy heat map offshore by 2030. It is also looking

to seize supply chain opportunities,
Egypt China
particularly by capitalising on the
role of micro, small and medium
Renewable energy by 2030
45%
● 42% renewable energy by 2035 with ● 50 GW of planned installations during the
support of Green Corridor Initiative 14th Five-Year Period (2021–2025)
● Installations
projected to rise from 1.7 GW ● Projected annual installations of
60 GW Offshore wind by 2030 to 8 GW by 2030
● Multi-GW scale projects in early stages of
70–80 GW until 2030
● Local industry ready to support annual
enterprises (MSMEs) in the Indian
development installations of approximately 15 GW South Korea
300 GW Offshore wind by 2050 ● Wind energy target increase from 2 to 34%, as
part of a 30% renewables target by 2036
wind manufacturing sector.
● Projected 34 GW of installed wind energy
by 2036
● New government implementing a 'One Stop

After a spell of virulent anti-wind

Shop Bill' to fast-track project development

Wind energy by 2030

Canada

UK
5%
rhetoric under the Trump
administration – albeit with continued
EU Offshore wind targets of 10 GW
Kazakhstan 10 GW
Mongolia by 2030 and 30–45GW by 2040

Uzbekistan

United States

30 GW Offshore wind by 2030

Tunisia China
South
Korea
Japan economics-led growth of the sector
– President Biden has enacted a
Morocco

Algeria

dramatic change of direction, both

Egypt
Mexico Saudi India Taiwan
Arabia 15 GW Offshore wind over
2026–2035 (1.5 GW/yr)
Mauritania

Costa Rica
Senegal
Thailand
Vietnam
Philippines through restating the USA’s climate
Colombia
Ghana
Nigeria
Ethiopia

17 GW Wind energy by 2030

leadership in international forums,
Kenya

India
Indonesia and through the Inflation Reduction
Brazil
Act (IRA). This landmark piece of
100% ● Annual target of 8 GW onshore wind
Tanzania
Peru Brazil ● Cross-party support for wind tender every year between 2023 and
100% energy as a driver of economic Renewable 2030 based on a single-stage
power by

legislation offers funding,

growth and job creation 2030 two-envelope bid system. 28 GW Wind energy by 2030
● ABEEólica expects annual additions ● MNRE published a strategy paper
Renewable
power by in the region of 3 GW for onshore Mozambique outlining a tender trajectory of 37 GW of
2030

programmes and incentives for

wind over the next decade Nambia offshore wind by 2030
● Offshore wind and green hydrogen ● Indian government and industry seizing
Australia
expected as additional drivers for supply chain opportunities

Chile
Uruguay
wind energy development
South Africa accelerating the transition to a clean
Argentina
energy economy across multiple
Victoria - offshore
Australia
● New national government supportive of onshore
and offshore wind development
sectors. The prospects for offshore
wind, in particular, are very exciting.
9 GW wind by 2040 ● Offshore Electricity Infrastructure Regulations
No federal targets
released
● Announced areas for offshore wind in
Gippsland (Victoria)

The EU, for its part, is laying out a

Strong installed capacity increase, new ambitious targets and/or policy improvement
Adequate targets and policies, but not matched by expected progress
multi-pronged approach to boost
Lack of progress or regression
European industry while achieving
energy and climate goals.
Renewable energy projects could
A new geopolitical era Under the leadership of President agreements, the Brazilian wind be given priority permitting in
Political conditions that have made Luis Inácio ‘Lula’ da Silva, Brazil is energy sector gains resilience and special ‘go-to’ areas under new
wind deployment difficult in many looking at wind energy as a prepares for a very bright future. provisions being considered in the
countries are beginning to shift, as vehicle for achieving climate goals upcoming revision to the
our heat map illustrates. There are while boosting economic growth. On the other side of the globe, Renewable Energy Directive, while
only a few places now where wind As it continues to move away from India is targeting wind capacity the REPowerEU package offers
power is neither in existence nor regulated auctions and towards additions of more than 60 GW renewables a 20 billion EUR
planned. corporate power purchase onshore and nearly 40 GW funding pot.

GWEC | GLOBAL WIND REPORT 2023 15
 The coming renewables acceleration

companies from outside the scarred by years of financial losses challenges while looking to deploy
energy industry are increasingly may retreat into caution and massive amounts of additional
keen to invest in wind protectionism. This would be the capacity in an ever-growing number
development. worst possible scenario both for of countries. Such a huge rise in
the wind industry and the energy wind power development can only
BloombergNEF estimates that transition – as global supply materialise if governments play their
offshore wind financing activity diversification has supported the part, through supportive and stable
will hit new records in 20233, with reduction of wind’s LCOE. market conditions, in allowing the
more than 30 GW of new projects wind industry to scale up to the
getting the go-ahead, over half of As gigawatt-level projects kick off ambitious targets it is expected to
which will be outside China. in new and traditional wind deliver.
Floating offshore technology is markets across the globe, GWEC
making steady progress and will anticipates a flurry of orders for In an increasingly interconnected
open up previously untapped turbine manufacturers everywhere, world, the wind sector must prove
markets. and pressure on all elements of the that it can continue to innovate,
supply chain as a result. It is collaborate and integrate. From
However, the promise of massive essential that the industry gears up the role of women and minorities
expansion risks colliding with the to respond to this challenge by in the industry to the wide-
Additionally, the EU is looking to reality of delivering turbines on thinking strategically about the ranging challenge of
introduce legislation that would land and in the water. The industry road ahead and setting itself up to sustainability, GWEC is
simplify and fast-track permitting is emerging from several difficult deliver on its ambition, supported determined to facilitate
procedures for climate-neutral years, during which turbine by adequate policies. connections between the many
industrial infrastructure, with the manufacturers have suffered stakeholders the sector affects.
goal of boosting Europe’s key financial losses and policymakers A turning point for wind
green industries and their full have often failed to provide the Having achieved impressive Having long established its
value chains. Efforts are also being optimal conditions for fast and learnings and economies of scale credentials as a reliable, effective,
made to reduce dependence on efficient market development and over the past two decades, wind is efficient and cost-competitive
non-EU sources of raw materials the necessary grid buildout. now a mature sector which, like technology, the wind industry
and rare earth elements (REEs). more traditional energy sources, now needs the right conditions to
While technological advances are reacts to external factors such as step up to the level that is
Responding to burgeoning happening across the sector – from commodity prices, interest rates required of it to fully deliver on its
demand China’s continued lead in upsizing and political support – rather than promise of cleaner and cheaper
Demand for wind energy continues turbine components, to global its own internal dynamics. energy for all.
to grow and expand. The trend efforts to improve the circularity of
towards corporate power purchase traditionally difficult-to-recycle No longer the new kid on the energy 3. https://about.bnef.com/new-energy-outlook/
4. https://www.vestas.com/en/media/company-news/2023/
agreements shows no sign of epoxy-based turbine blades4 – block, the wind sector is at a turning vestas-unveils-circularity-solution-to-end-landfill-
slowing down, and large there is a danger that an industry point – facing up to a host of new for-c3710818

16 GWEC.NET
PART 1: A NEW ENERGY MARKET
 Part 1: A new energy market

A new energy market Projected changes in global electricity generation (TWh) by source

31,500
In 2022, the world saw many of its for gas-importing countries, causing
long-established paradigms surges in the prices of everything – 31,000
shattered by a number of deeply from fertilisers to heating and power
transformative events. Inflation – and causing low-income countries 30,500

reached levels not seen since the to suffer the most. 30,000
massive disruptions of the 1970s –
driven at both times in large part by The global response has been to 29,500
commodity price increases. The focus on energy security and
29,000
unprovoked attack on Ukraine by resilience. Governments
Russia laid bare the world’s introduced measures to make 28,500
dependence on fossil fuels – and the energy affordable by utilising all
energy insecurity that comes with it. available energy sources, 28,000
including coal, gas and nuclear, 2021 2022 Coal Oil Gas Nuclear Renewables 2025
As Russia is the world’s second and by committing to developing
largest gas producer, this more renewables in the latter part Source: IEA, 2023

dependence came at a steep price of the decade.

In Europe, the REPowerEU3 energy storage, the electricity grid
The short-term focus on programme has committed the and energy efficiency. The act has
affordability and the subsequent bloc to weaning the continent off already accelerated large amounts
increased use of fossil fuels led to Russian gas by 2030 (or sooner). of investment.
an increase in global carbon The policy also seeks to remove
emissions1, even with nearly 80 bottlenecks to permitting and other Approval of China’s 14th Five-Year
GW of wind power and more than hindrances to the deployment of Plan5, covering the 2021–2025
200 GW of solar capacity renewable energy projects. period, paves the way for innovation-
installed2. What this tells us is that driven, sustainable and low-carbon
installing 300 GW of renewables in The US passed the Inflation development. The plan also aims to
one year is not enough to curb a Reduction Act (IRA)4, transforming reduce the carbon intensity of the
rise in carbon emissions. the way the country approaches Chinese economy and targets peak
renewables, decarbonised transport, CO2 emissions before 2030.
A tipping point for wind energy
Amid the turmoil of 2022, it is clear 1. https://www.carbonbrief.org/analysis-global-co2-emissions-from-fossil-fuels-hit-record-high-in-2022/
that we have reached a tipping point 2. https://renewablesnow.com/news/global-solar-pv-additions-to-top-200-gw-in-2022-ihs-markit-761554/
3. https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1511
for renewable energy in general 4. https://www.epa.gov/green-power-markets/inflation-reduction-act
and for wind power in particular. 5. https://www.adb.org/publications/14th-five-year-plan-high-quality-development-prc

18 GWEC.NET
 Part 1: A new energy market

Commodity Price Index Significantly more wind will be as companies globally commit to
required to achieve those goals. environmental, social and
governance (ESG) goals that
300 Substantiating this trend, the require them and their suppliers to
International Energy Agency decarbonise.
250
(IEA)’s Electricity Market Report
2023 sees renewable energy This is a mega-trend to watch as
200
sources supplying pretty much the GWEC believes the demand side
totality of the additional electricity will become much more vocal in
2016 = 100

150
generated between 2022 and its desire to see more renewables
100 2025.6 come online to help them and their
suppliers meet their
50 In its Renewables 2022 report – the decarbonisation targets. An
agency’s primary analysis of the example of this is the Asia Clean
0
renewable energy sector – the IEA Energy Coalition8 – launched by
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
forecasts capacity additions GWEC, the World Resources
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
reaching record highs through Institute and The Climate Group
Source: IMF, 2023
20277, led by solar and wind. It and including Google, Apple,
expects annual additions to range Samsung, Nike and many other
Historical London Interbank Offered Rate (LIBOR, %) from 350 GW in the main scenario large corporates with significant
to 400 GW in the accelerated case. commitments to decarbonise.

7 What does a wind energy But while these trends and

boom mean? commitments are very positive for
6
Wind power is not just growing renewables in general and wind
5 bigger, it is also spreading more energy in particular, there remains
widely. Beyond the current world much to do to fully enable the
4
leaders, many other countries are renewables sector to deliver the
3 also refocusing on renewables – ambitious deployment levels
driven both by the insecurity of required to achieve these wider
2 relying on fossil fuels and the ESG goals.
desire to remain economically
1
competitive. Economic drivers are Take, for example, the supply of
0 becoming increasingly important wind turbines. Based on the
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20

6. https://www.iea.org/reports/electricity-market-report-2023
7. https://www.iea.org/reports/renewables-2022
Source: IMF, 2023 8. https://gwec.net/acec-launches-to-rapidly-drive-corporate-clean-energy-procurement-in-asia/

GWEC | GLOBAL WIND REPORT 2023 19
 Part 1: A new energy market

LNG spot prices in Asia (USD/mmbtu) GWEC Market Intelligence production capacity will be
database of global wind supply needed to meet fast-growing
side, the industry had a potential demand.
60 turbine production capability of
120 GW in 2020. Since 105 GW All energy costs are on the up
50 of turbines were delivered in Following the massive disruptions to
2021, that leaves approximately supply chains caused by the
40
10% of spare capacity. However, COVID-19 pandemic, energy
because of low profitability in demand bounced back as
30
2021 and 2022, many turbine economies reopened. Stretched
20 manufacturers have cut back on supply chains tried to balance
staff and closed some production supply with demand, while shipping
10 facilities. and logistics bottlenecks added to
the strain. Prices for a range of
0 As the industry starts to grow goods, from cars and wind turbines
again, will turbine manufacturers to washing machines and food, rose
13

14

15

16

17

18

19

20

21

22
20

20

20

20

20

20

20

20

20

20
have enough visibility on turbine dramatically.
Source: Federal Reserve, 2023
demand to rapidly ramp up
production capacity? Meanwhile, as inflation soared,
Average quarterly wholesale electricity prices
central banks became concerned
Another significant recent trend is about its impacts on the economy
1200
the growing China–US/EU tension and embarked on a series of
on trade and other policies, interest rate rises, leading the
Indexed electricty price (Q1 2019 -=100)

1000
possibly marking a move away cost of capital to also increase.
from globalisation in an attempt to Higher cost of capital leads to
800
shore up regional economies and increased costs for all
security of supply. What are the investments.
600
implications for wind energy,
400
especially with China being such a The historically high commodity
dominant producer across the prices seen in the last two years, and
200 renewables supply chain? the upturn in the cost of capital seen
in 2022 as central banks tightened
0 These are some of the questions monetary policy, has impacted all
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
we will look to address in detail in energy sources worldwide.
2019 2020 2021 2022 2023 2024
Germany France United Kingdom Spain United States
later chapters of this report. At the
Japan Australia Nordics India European index high level, it seems inevitable that From 2010 to 2020, Newcastle coal
Source: IEA, 2023 a significant, global ramping up of futures, the benchmark for the top

20 GWEC.NET
 Part 1: A new energy market

coal-consuming region of Asia, Equipment manufacturing for Historical LCOE by technology (USD/MWh)
ranged between $50/tonne and gas-fired and coal-fired generation 250
$120/tonne9. After sharp increases – as for wind and solar generation
in 2021, they averaged $350/tonne – has benefited from the efficiency 200
in 2022, making the cost of coal- improvements achieved over the
fired power generation decades. But with high inflation 150
substantially higher than the cost and massive disruptions to global
of wind in almost every country. supply chains, coupled with higher 100
And that is before the cost of expenditure in shipping and
carbon or its abatement is even logistics, the capital cost (CAPEX) 50
taken into account. of electricity generation for all
technologies has risen. 0
Over the past two years, prices 2014 2015 2016 2017 2018 2019 2020 2021 2022
for Asian liquified natural gas Wind has achieved significant
Wind onshore US Wind onshore UK Wind offshore UK Japan coal
(LNG) have spiked against 2020 cost reductions over the last 20 CCGT Japan CCGT UK Coal US Philippines coal

levels. While most LNG-importing years and the wind industry is Source: BNEF, 2023
countries have long-term now considered fairly mature,
contracts in place, they are especially onshore wind. 20 years (+/-30%) with the
unlikely to cover 100% of Offshore wind is newer but, variation caused by the usual
demand, leaving countries having been commercial for at movements in supply and demand,
exposed to importing spot least 15 years, it is also reaching and particularly by the cost of
cargoes. This has come at a very maturity. This means that the materials such as steel and
high financial cost, particularly in dramatic price reductions that we copper.10 There is no reason to
the past year. And because LNG have seen historically are likely think that wind, as it matures, will
markets are global the price to slow and future cost act differently.
impacts are felt globally. fluctuations in the cost of wind
are likely to reflect the underlying Relative costs of wind power
These trends contributed to a cost of capital, commodity costs remain low
historic increase in wholesale (steel, copper), and logistics The cost profile of electricity
electricity prices. Average costs, as noted above. generated from wind and solar
quarterly wholesale electricity energy versus electricity
prices spiked in much of the world For example, the cost per kilowatt generation powered by traditional
through the end of last year, and (kW) for a gas-fired turbine, a fossil fuels appears very favourable
while the IEA projects prices to mature technology, has been – it has been for some time and
drop in 2023, the projections are roughly 1,000 USD/kW for the last will continue to be.
not close to where they have been 9. https://tradingeconomics.com/commodity/coal
in previous years. 10. https://www.sciencedirect.com/science/article/abs/pii/S1364032117305531?via%3Dihub

GWEC | GLOBAL WIND REPORT 2023 21
 Part 1: A new energy market

From cost to value While the focus over the last two possible, to one around how they
At the same time, to achieve their decades or more has been on can achieve the maximum amount
ambitions, countries will also have achieving cost reductions, with of economic development and job
to move decisively to fix current procurement arrangements largely creation, while moving rapidly to
market and regulatory imbalances, led by concerns from treasury fulfil their emission reduction
which have seen leading departments, policymaking now targets.
companies in the wind industry needs to focus on the societal and
supply chain declare losses over a economic value of wind energy. GWEC and its member
period of several years while fossil Wind energy is already highly companies, alongside sister
fuel-producing companies make competitive compared with fossil organisations and partners like
record profits. fuels and nuclear, but its wider social IRENA and the IEA, are working
value needs to be recognised in hard to achieve the necessary
This situation, referred to by market and procurement change in focus and create
leading commentators in the frameworks. improved market and regulatory
energy sector as a ‘bizarre conditions for a rapid and
paradox’, has been ‘a colossal Wind energy, in combination with confident transition.
Wind power still maintains price market failure’, according to other renewable energy
advantages in most countries, even GWEC CEO Ben Backwell.11 Poor technologies, is the most efficient This will allow wind original
without considering the impacts or market design and procurement way of decarbonising power equipment manufacturers (OEMs),
future carbon pricing schemes. have led to a ‘race to the bottom’ on systems. The evidence shows that developers, shipping companies
There is no reason why wind power wind pricing, while inflationary a failure to deploy wind rapidly and other actors in the supply
should lose its price advantage pressures combined with enough carries with it far higher chain to invest, ensuring an optimal
over LNG and coal in most markets government price caps have costs in terms of exposure to fossil balance between supply and
globally. exacerbated the squeeze on fuel volatility, geo political pressure demand, and delivering benefits
profitability. As we shall see, this in and higher carbon emissions for all.
To make wind power as cost- turn has led to underinvestment in leading to damage from climate
efficient as possible going forward, it manufacturing and has created the change. In later sections of this report, we
is essential that governments likelihood of supply chain look at how policy discussion is
continue to provide visibility on bottlenecks in the years to come. Wind energy has the potential to shifting in key markets for the
future demand through ambitious create tens of millions of new renewables transition. But first we
nationally determined contributions In order to enable the huge amounts skilled jobs around the world and examine the current state of the
and sectoral targets while of supply chain investment needed act as a catalyst for trillions of global wind supply chain and
introducing enabling regulations and to meet increased demand, dollars of investment. It is essential discuss the potential impact of
removing bottlenecks in permitting governments and regulators will that policymakers move the policies aimed at achieving a
and other phases of development. need to act smartly to fix current discussion around procurement larger share of national and
market imbalances and set the stage away from a narrow focus on regional content in wind turbine
11.Wind Power’s ‘Colossal Market Failure’ Threatens
Climate Fight for growth. achieving the lowest price manufacturing.

22 GWEC.NET
PART 2: CHALLENGES IN THE SUPPLY CHAIN
 Part 2: Challenges in the supply chain

Challenges in the supply chain

While 2022 saw only 78 GW of l  hina’s commitment to further
C The 2 TW milestone is expected to be achieved in just seven years
new capacity connected expand the role of renewables in 400 3,200
worldwide, the market is ready to its energy mix;

Cumulative global installations (GW)

350 Or we reach only 68% of the wind power required by 2,800
bounce back in 2023, primarily l An anticipated ten-year

New global installations (GW)

2030 to stay on track for a net-zero/1.5C pathway

driven by expected explosive installation uplift in the US, driven 300 2,400

growth in China. Cumulatively, by the passage of the IRA. 250

Installations need to grow 5x
2,000
nearly 940 GW of wind power had 200
2 TW
1,600
been installed globally (without Although the revised rate of wind
150 1,200
taking into account grid growth is still not rapid enough to
1 TW
connection) by the end of 2022. enable the world to achieve its 100 800

GWEC Market Intelligence Paris Agreement targets or net 50 400

95 94 78 115 125 135 150 157 169 180 190
forecasts that the 1 TW milestone zero by 2050, GWEC believes the
0 0
will be reached sometime mid- milestone of a second TW is likely
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
2023. to be passed before the end of
2030 – provided the anticipated New wind capacity Projected new wind capacity based on current growth rates
Annual capacity gap to meet net zero by 2050 scenarios
What is the expected demand growth materialises in the three Cumulated wind capacity to meet net zero by 2050 scenarios
in this decade? key wind markets of China, Europe
Source: GWEC Market Intelligence; IEA Net Zero by 2050 Roadmap (2021); projected new wind capacity from 2023-2030
Compared with the 2030 global and the US. assumes a ~7.2% CAGR, which is based on GWEC’s Q1 2023 Global Outlook; capacity gap figures are estimations based
outlook released alongside last on the IEA Roadmap milestone for 2030. Cumulative global installations for wind energy are roughly in alignment with the

year’s Global Wind Report, GWEC What is the state of the global IRENA World Energy Transitions Outlook: 1.5°C Pathway (2021). This data represents new and cumulative capacity and
does not account for decommissioned projects.
Market Intelligence has increased wind supply chain?
its forecast for total wind power As the birthplace of the wind World’s top five wind turbine and component production hubs by annual output
capacity additions for 2023–2030 industry, Europe enjoys a mature
by 143 GW (13% YoY). The main supply chain spanning from
reasons behind this upgrade turbine nacelles through to key
2
include: components and raw materials. 4
1
However, since establishing a local 3
l  nergy system reform in
E wind supply chain in 2008–2010,
Europe, replacing fossil fuels China has not only become the 5
with renewables to achieve world’s leading wind turbine
energy security in the manufacturing base, but also the
aftermath of Russia’s invasion of largest production hub for key
Ukraine; components and raw materials. Source: GWEC Market Intelligence, February 2023

24 GWEC.NET
 Part 2: Challenges in the supply chain

European and American turbine Overview of global wind turbine nacelle facilities
OEMs decided to diversify their
China Europe India USA LATAM Asia Africa Total
supply chain to ensure security of
Pacific & ME
supply, in the aftermath of the
COVID-19 pandemic. India, the Total number of nacelle assembly 77 (4)* 16 13 4 6 3 1 123
second-largest Asia-Pacific (APAC) facilities (onshore)
hub for turbine assembly and key Total number of nacelle assembly 20 (1)* 5 0 0 0 4 0 30
components production, has since facilities (offshore)
gained an increasingly prominent
role in the global wind supply Number of announced nacelle 17 0 2 0 0 0 0 19
chain. assembly facilities (onshore)
Number of announced nacelle 47 1 0 3 0 4 0 55
While most of the suppliers to the assembly facilities (offshore)
wind industry are still based in * facilities owned by western turbine OEMs
APAC, Europe and the Americas,
new entrants have also emerged in
the Middle East and North Africa
(MENA) region. Europe is the world’s second- Global wind turbine manufacturing capacity in 2023
largest turbine nacelle production
Other (APAC excl. China and India) 1%
Will there be enough supply base, with assembly facilities
chain capacity to feed growth? mainly located in Germany, LATAM 4%
Denmark, Spain, France, Portugal India 7%
Turbine nacelles and Turkey. The US is the world’s
Globally, there are 153 turbine third-largest wind nacelle
US 9%
assembly plants currently in manufacturing hub, followed by
operation, with another 74 facilities India and LATAM – primarily Brazil.
either under construction or in the 163 GW
planning stage. China has more Globally, 163 GW of nacelle
than 100 nacelle assembly production capacity is available in Europe 19%
facilities in operation and another 2023. At first glance, the wind
64 under construction. With a industry appears to have enough
turbine nacelle production nacelle assembly capacity to meet
capacity of 98 GW per year, the the projected global demand up
country accounts for 60% of the to 2027. However, the picture is China (incl. capacity from three western turbine OEMs) 60%
global market share, making it by different if separate benchmarks Note: Wind turbine manufacturing capacity refers to wind turbine nacelle assembly capability and doesn’t represent
actual nacelle production in 2023.
far the world’s dominant turbine are applied for onshore and
nacelle manufacturing hub. offshore wind, especially at a Source: GWEC Market Intelligence, February 2023

GWEC | GLOBAL WIND REPORT 2023 25
 Part 2: Challenges in the supply chain

Onshore wind demand and supply benchmark, 2023–2030 (MW)

Onshore turbine nacelle capacity Onshore turbine nacelle capacity Onshore turbine nacelle capacity
excl. China & India, 2023 in China, 2023 in India, 2023
Western turbine OEMs 15% (12,000) Chinese turbine OEMs 11% (1,200)
RoW 1% (350)
LATAM 15% (6,150)

41,750 82,000 11,500

MW MW MW

North America 32% (13,650)

Western turbine
OEMs 50% (5,800)
Europe 52% (21,600) Chinese turbine OEMs 85% (70,000) Indian turbine OEMs 39% (4,500)
Source: GWEC Market Intelligence, February 2023

Demand vs supply analysis 2023-2030 (MW)

2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
Europe 14500 17750 18920 20950 23290 23500 24000 25000
US 8000 9000 10000 13000 15000 17000 18000 20000
LATAM 5860 5362 5200 5050 5030 5000 5000 5000
China 60000 60000 60000 60000 60000 65000 65000 65000
India 3400 4200 4500 4700 4500 4500 5000 5000
RoW 5619 9955 10424 13560 13705 14000 14300 15000
Global 97379 106267 109044 117260 121525 129000 131300 135000

Source: GWEC Market Intelligence, March 2023 l Sufficient l Potential bottleneck

regional level. Out of this total, 12 GW is from the turbine nacelle production base, for this decade, we conclude that
three western OEMs: Vestas, SGRE followed by the US (13.6 GW), India the supply chain in China, India
Challenges in the supply chain for and GE Renewable Energy. (11.5 GW) and LATAM (6.2 GW). and LATAM will have enough
onshore wind nacelles nacelle production capacity to
China dominates global onshore With 21.6 GW of annual assembly When we compare these accommodate demand, while the
wind turbine nacelle assembly with capacity per annum, Europe is the production capacities with the rest of world, in a business as
82 GW of identified annual capacity. world’s second largest onshore onshore wind demand projected usual scenario, will continue to

26 GWEC.NET
 Part 2: Challenges in the supply chain

Offshore wind demand and supply benchmark, 2023–2030 (MW)

Offshore turbine nacelle capacity Expected offshore turbine nacelle capacity Offshore turbine nacelle capacity
excl. China, 2023 excl. China, 2024 in China, 2023
North America 0% North America 0% China (non CN OEMs)
APAC excl. China 6% (1,000)
17% (1,900)

11,400 15,200 16,000

MW MW MW

APAC excl. China

24% (3,700)
Europe 83% (9,500) Europe 76% (11,500) China (CN OEMs) 94% (15,000)
Source: GWEC Market Intelligence, February 2023

Demand vs supply analysis 2023-2030 (MW)

2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
Europe 5760 2955 7002 10036 12143 15403 21440 25950
China 10000 12000 12000 15000 15000 15000 15000 15000
APAC excl. China 1751 1569 2884 2615 3855 4770 6900 7900
North America 535 1660 3780 4750 4460 4500 4500 5000
LATAM 0 0 0 0 0 0 500 1000
Global 18046 18184 25666 32401 35458 39673 48340 54850
Source: GWEC Market Intelligence, March 2023 l Sufficient l Potential bottleneck

rely on imported wind turbines supply chain is interrupted by Europe and the US can be fully Challenges in the supply chain for
to cope with the anticipated proposed regional initiatives such as utilised – an unlikely occurrence as offshore wind nacelles
growth. ‘Made in Europe’ and ‘Made in the buffer room is normally required to Compared with onshore wind,
USA’ – and no new nacelle assembly ensure suffcient supply and the supply chain for offshore
For Europe and the US, we expect capacity is built at the same time – production capacity will be wind turbines is more
sufficient supply throughout this we expect to see supply chain impacted by the introduction of new concentrated, due to the fact that
decade if western turbine OEMs can constraints in both regions by the onshore turbines with greater power more than 99% of total global
smoothly mobilise the capacity they middle of this decade. Even rating – we foresee a bottleneck offshore wind installation is
own in China and India. However, if assuming that all of the existing occurring from 2026. presently located in Europe and
the free flow of the global wind nacelle production capacity in the APAC region.

GWEC | GLOBAL WIND REPORT 2023 27
 Part 2: Challenges in the supply chain

China is the world’s number-one GWEC Market Intelligence does plans announced by western OEMs
offshore turbine nacelle not see any problems arising in in partnership with Japanese and
production centre with annual the near term, given that Korean firms materialise in time.
assembly capacity of up to 16 GW, European OEMs are able to share
of which 1 GW is owned by one spare offshore nacelle assembly In the US, considering local
western turbine OEM. Excluding capacity with emerging markets content requirements (LCRs)
China, the APAC region has an in APAC and North America in associated tax credits and
offshore turbine nacelle capacity 2023–2024. incentives under the IRA and the
of 1.9 GW, mainly located in two-year lead time needed to
Taiwan and South Korea. However, the situation is going to build a new offshore wind nacelle
change. Starting in 2026, we production facility from scratch, it
In Europe, current nacelle assembly expect Europe’s existing offshore is of the utmost urgency that GE
capacity for offshore wind is about turbine nacelle assembly capacity Renewable Energy, SGRE and
9.5 GW, which we anticipate to no longer be able to support Vestas turn their investment plans
reaching 11.5 GW next year when a growth outside of Europe. into concrete action.
new nacelle facility comes into
operation in Eastern Europe. In fact, we expect that from 2027 There are no plans for offshore
Europe’s offshore wind turbine wind projects to be built in LATAM
No offshore turbine nacelle nacelle assembly capacity will until the latter part of this decade.
assembly facility is currently in struggle to cope with the growth However, early investment is
operation in North America, expected in Europe alone. Existing needed to avoid bottlenecks. This
although GE Renewable Energy, capacity needs to double in order is especially true of Brazil, where
SGRE and Vestas have announced to meet the projected demand for 71 offshore wind projects, totalling
nacelle investment plans for New this region in 2030. more than 170 GW, had filed
York and New Jersey in Q1 2023. environmental investigation
Similar to North America, LATAM Looking at APAC (excluding licences by the end of 2022,
has no offshore nacelle assembly China), although offshore turbine according to the country’s
facilities despite Chinese turbine nacelle capacity is likely to Ministry of Mines and Energy.
OEM Mingyang looking for increase to 3.7 GW after expansion
offshore wind investment work is completed at one of the Key components
opportunities in Brazil since 2020. existing facilities in 2024, it will still GWEC Market Intelligence has
be insufficient to meet demand in been monitoring the supply chain
Looking at the demand and this region from 2027. Taking into for key wind turbine components
supply situation for this decade, account estimates that demand for since 2019. Based on our latest
our benchmark results show offshore wind turbines in this supply chain update, no
more challenges for offshore region will reach 7.9 GW in 2030, it bottlenecks are expected in 2023–
wind than for onshore wind. is imperative that the investment 2024 for key components such as

28 GWEC.NET
 Part 2: Challenges in the supply chain

Global wind key component supply chain overview

Global WTG blade manufacturing Global WTG generator manufacturing Global wind gearbox manufacturing
capacity in 2022 capacity in 2022 capacity in 2022
Other APAC 1% Other APAC 3% Other APAC 1%
LATAM 7% LATAM 3%
India 12%
India 7%
US 7%

India 11%
130GW 125GW 160GW

Europe 14%

Europe 22% Europe 12%

China 60% China 65% China 75%

Source: GWEC Market Intelligence, February 2023

blades and generators, but further is well positioned to support It is also important to note that bearings, towers and flanges with
investment in both components is the expected growth up the supply chain for key more than 70% global market
needed to accommodate growth to 2027. A concentrated supply components is highly dependent share. How other regions enact
after 2024. chain and regionalised on China. In addition to policies designed to reshore
sourcing strategies, however, gearboxes and generators, China production or restrict trade will
Following recent investment, look certain to create controls the global supply chain have a strong impact on the
gearbox manufacturing capacity bottlenecks. for castings, forgings, slewing supply picture and on cost.

GWEC | GLOBAL WIND REPORT 2023 29
 Part 2: Challenges in the supply chain

Case study: Sourcing rare earth materials for wind energy from local supply chains
The increasingly ambitious wind – and following a toughening of
energy targets being set to reduce China’s export restrictions of rare China dominated REE mining and processing in Q4 2022
reliance on traditional energy earth-related technologies – there is
sources – both in terms of growing policy and industrial concern Other 32% Other 6%
geographical and material in Europe, North America, Australia
dependence – present a challenge and elsewhere.
from a supply chain perspective. This
While sourcing enough REPMs for
is particularly true for rare earth
wind energy generation can be Mining Processing
elements (REEs), with top
difficult, the greatest challenge for the
policymakers increasingly calling for
industry is being able to source them
de-risked supply chains.
domestically or from a de-risked
Wind energy uses large amounts of supply chain. In major markets such
rare earth permanent magnets as Europe, the US and Australia,
(REPMs), contributing significantly demand for REPMs in wind energy is China 68% China 94%
to global demand. Wind energy substantially larger than local supply.
OEMs have faced challenges in Source: Benchmark Mineral Intelligence

obtaining the quantities of REPMs Policymakers have made some

they need, despite supply growing efforts to bridge this gap, for
at record speed and demand Wind turbine technology forecast (%) and equivalent direct REPM use (tonnes)
example in the US, the UK and
softening thanks to ‘hybrid’ wind Australia, where Benchmark Mineral 100% 16,000
energy technologies increasingly Intelligence (Benchmark) expects to
replacing standard direct drive (DD) see rapid processing capacity growth 14,000
80%
turbines over the past five years. by 2024-2025. 12,000
Hybrid systems (medium-speed 10,000
l The US Department of Defense has 60%
drivetrains) use just one-tenth of the
REPMs needed in a DD drivetrain. awarded two high-profile contracts 8,000

to MP Materials and Lynas Rare 40% 6,000

In the fourth quarter of 2022, China Earths, at 35 million USD and 120
4,000
accounted for 68% of rare earth million USD respectively, to expand 20%
mining and 94% of downstream rare earth oxide (REO) separation 2,000

processing. Only a meagre amount of capacity. Additionally, bill H.R. 5033 0% 0

materials was processed elsewhere, proposes to support magnet 14

15

16

17

18

19

20

21

22

23

24

25

26

27
20

20

20

20

20

20

20

20

20

20

20

20

20

20
principally in Malaysia and Estonia. producers in the US to help them High-speed drive Medium-speed drive Direct drive REPM consumption, tonnes

Because the wind industry is exposed compete with their Chinese Source: GWEC, Benchmark Mineral Intelligence
Note: This chart displays direct REPM use (magnet volumes) in DD and medium-speed drivetrains per annum. It is not
to the impacts of geopolitical tensions counterparts. Benchmark forecasts normalised to final raw materials demand.

30 GWEC.NET
 Part 2: Challenges in the supply chain

Case study: Sourcing rare earth materials for wind energy

from local supply chains (continued)

active production from multiple The availability of locally processed

REPM facilities in the US, notably by and manufactured REPMs may be
MP Materials in Texas and USA Rare further limited, in the short and
Earths in Oklahoma. medium term, by offtakes securing
l The UK’s 850 million GBP Automotive
sizeable portions of planned
production for EV manufacturers.
Transformation Fund will develop
Whereas a facility such as Solvay’s La
Pensana’s 145 million GBP
Rochelle, in France, may be able to
separation facility at Saltend
scale up fast thanks to existing
Chemicals Park, in northern
knowledge and experience, other
England. This facility is expected to
parts of the puzzle need to align.
consume a growing input of external
Before a diversified, de-risked and
feedstocks – as the facility scales
sizeable local supply chain is
and the company’s own mine
established, more than 300 GW of
reduces production – to produce
additional wind power capacity may
separated oxide, and is the UK’s
already have been built.
largest effort to date to establish
domestic rare earth processing. Benchmark forecasts a more
diversified and regionally scaled rare
l I n Australia, Iluka Resources has
earth processing market beginning to
received 1.25 billion AUD in non-
take shape after 2025, particularly in
recourse financing from Export
Europe, North America and Australia.
Finance Australia. This is part of the
Environmental protections and
government’s wider 2 billion AUD
economic concerns, such as high
Critical Minerals Facility to establish
CAPEX requirements and low Chinese
the Eneabba refinery in Western
costs, together with considerable
Australia, with additional capacity to
project lead times, cast a shadow on
consume external feedstocks.
capacity addition forecasts, however. A
While the pipeline of processing large part of the wind industry will, as a
facilities in North America, Australia result, have to rely on sourcing REPMs
and Europe is significant, it will take from China in order to meet clean
time for the first inputs to be converted energy demand in the short term.
into saleable material, and to fund and
construct the required facilities. With input from Benchmark Mineral Intelligence

GWEC | GLOBAL WIND REPORT 2023 31
 Part 2: Challenges in the supply chain

Wind turbine installation In Europe, the current WTIV supply foresees a likely shortage in All of this has brought the urgency
vessels (WTIVs) chain can cope with demand, given Europe towards the end of this of building supply chain security
According to GWEC Market that annual offshore wind installations decade, unless investment in new for renewables to the top of the
Intelligence’s Global WTIVs are relatively flat and unlikely to WTIVs is made before 2027 political agenda and created a
database 2022, China and reach the 10 GW milestone until (assuming a lead time of three global green investment race.
Europe operate the majority of 2026 – which also explains why years for delivering a new WTIV
jack-up and heavy-lift vessels European vessel operators are able vessel). The Inflation Reduction Act (IRA),
used for offshore wind turbine to release their jack-up and heavy- signed into law by the Biden
installation. No global shortage lift vessels over the next two years to In the US, where only two tailor- Administration in August 2022,
of WTIVs is expected up until support the demand from emerging made Jones Act compliant WTIVs promises to move the US closer to
2026. markets in Asia, mainly Taiwan and are currently under construction, its climate goal. Its provisions on ax
Japan, and the US. plans for new WTIVs will have to be credits and LCRs associated
Following an offshore wind executed in the next two or three incentives have generated concern
installation rush in 2021, new Looking at the supply chain years to avoid bottlenecks, if the in the EU and other countries about
installations in China slowed down situation for the 2027–2030 period, Biden Administration’s target of 30 the IRA’s potential negative impact
in 2022, and we do not expect to however, while GWEC Market GW of offshore wind by 2030 is to on their domestic manufacturing
see 2021-level installations again Intelligence does not expect WTIV be met. industries. In response, the EU
until 2026. supply chain constraints in China, it unveiled its Green Deal Industrial
Restrictive trade policies could Plan, which aims to boost Europe’s
Number of wind turbine installation vessels in 2022 delay the energy transition cleantech competitiveness and to
The past three years have shown keep green investments at home.
80
the exposure and vulnerability of
In operation renewable industries to geopolitical What we are witnessing now is a
70 Under construction/planned
dependencies, commodity price clear misalignment between
60 cycles, logistics bottlenecks and government, industrial, trade and
50
12 19 trade barriers. The sudden post- financial policies. It must be
lockdown recovery of industrial understood that without well-
40
4
production in 2021 led to fierce functioning and competitive
4 competition for raw materials, as global wind supply chains –
30
well as ongoing bottlenecks in alongside equal access to raw
20 manufacturing capacity. materials and components – the
energy transition will not
10 4
Russia’s invasion of Ukraine also materialise. There is a danger
0
48 31 47 37 10 8 4 2 deepened geopolitical concerns that the restrictive trade policies
Jack-up Heavy lift Jack-up Heavy lift Jack-up Heavy lift Jack-up Heavy lift and intensified the existing trade proposed by the EU and the US
(Europe) (Europe) (China) (China) (Asia ex.China) (Asia ex.China) (North America) (North America) tensions between China and other may risk delaying the global
Source: GWEC Market Intelligence Global Offshore Wind Turbine Installation Vessel Database, October 2022 markets, such as Europe and the US. energy transition.

32 GWEC.NET
PART 3: THE RISKS AND OPPORTUNITIES
OF REGIONALISATION
 Regionalisation and decoupling supply chains
– risks and opportunities
As a result of the combined effects assembly plants in operation The Inflation Reduction Act (IRA)
of geopolitical threats, climate today, with another 74 facilities provides significant incentives for
imperatives and energy security either under construction or in US-based manufacturing, which
challenges, the deployment of the planning stage. These could render uncompetitive any
renewable energy capacity is assembly plants will need projects that do not use the levels
expected to accelerate components from across the of local content required to qualify
substantially over the coming global supply chain, requiring for the extra tax incentives
years (see Part 1). This substantial investment to meet stipulated in the law. The EU has
acceleration comes as countries demand. expressed ‘serious concerns’
and regions move to implement about the IRA, alleging it may
their ambitious energy and Our analysis in Part 2 also reveals breach WTO international trade
climate targets and is driven by that shortages for both nacelles rules, and has responded with its
continued cost advantages and key components may Green Deal Industrial Plan. Within
compared with fossil fuels. develop in the US and Europe this plan is the Net Zero Industry
mid-decade if the free flow of the Act (NZIA), which requires national
GWEC Market Intelligence has global wind supply chain is governments to apply non-price
increased its forecast for additional impacted by regional initiatives criteria – defined as environmental
wind power installations in the aimed at achieving ‘Made in sustainability, energy system
2023–2030 period by 143 GW Europe’ and ‘Made in the USA’ integration, and contribution to the
(+13% YoY). We now expect the supply chains. resilience of cleantech supply
first TW of wind power to be chains – to procurement
installed by mid-2023 and the GWEC is concerned that mechanisms. These measures
second TW to be reached at the governments around the world do would allow governments to award
end of this decade. not understand the potential higher prices in procurement
impacts of their poorly mechanisms to enable companies
This massive increase in coordinated actions, which is why to invest in EU-based supply
installations will create a need for the availability of key data on chains, and make production more
significant additional capacity supply chain development is sustainable through circular
across the entire wind supply critical, and why continuous economy and other practices.
chain (see Part 2). For example, dialogue with industry must be However, policymakers should
there are 153 turbine nacelle undertaken. beware of introducing more

34 GWEC.NET
 Part 3: The risks and opportunities of regionalisation

Country/ Region Actions taken to reshore supply chains

USA Passed Inflation Reduction Act (IRA) in August 2022.
Provides a tax credit, the advanced manufacturing production credits (AMPC), for US-made renewable energy equipment, including vessels, with sunsets beginning in 2030.
Extends the existing ITC and PTC to 2024 and then replaces them with the Clean Electricity Investment Credit and the Clean Electricity Production Credit, both applying to
designated renewable energy and storage technologies. They sunset in 2032 or when the Treasury determines that annual greenhouse gas emissions from electricity
production in the US are less than 25% of 2022 levels.
Incentivises developers of US renewable projects to purchase domestically produced equipment by providing an additional tax credit if they meet domestic content
requirement (DCR) thresholds.
To qualify, onshore wind projects installed before 2025 must source 40% (20% for offshore wind) of all equipment in the US. This rises to 55% after 2026
(2027 for offshore wind).
100% of steel and iron construction materials must be manufactured in the US.
Requires certain wage and apprenticeship requirements to qualify for some of the incentives.
Introduces other incentives to induce additional investment in everything from rural small business loans for energy efficiency to R&D grants.
According to consultancy Wood Mackenzie, incentives under the IRA will cut the cost of solar, wind and storage equipment by anywhere from 20% to 60%.
European Union The European Commission presented its Green Deal Industrial Plan in March 2023, consisting of a Net Zero Industry Act (NZIA) aiming to strengthen the EU’s industrial base for
clean technologies, a Critical Raw Materials Act (CRMA) to increase Europe’s capacity to source and refine critical raw materials, and more flexible state aid rules.
The NZIA aims to support investment in manufacturing capacity in ‘net-zero emissions’ technologies in Europe. For wind, it sets an annual manufacturing capacity target of 36
GW. The commission envisages a new Sovereignty Fund to support cleantech supply chains and identifies the EU Innovation Fund as a bridging instrument.
The CRMA includes a list of materials important for the wind industry such as REEs used in permanent magnets, copper for cables and lithium for batteries. With the aim of
building its own domestic critical raw materials supply chain, the CRMA wants the EU to extract at least 10% of the critical raw materials it uses from within Europe by 2030. At
least 40% should be processed within the EU by then. Under the CRMA, 15% of the EU’s annual consumption of raw materials would need to be recycled by 2050.
New EU State Aid Guidelines for Climate, Energy and Environment entered into force in January 2022, allowing governments to include up to 30% non-price elements in the
selection criteria of their auctions. The NZIA now requires national governments to apply non-price criteria, defined as: environmental sustainability, energy system integration,
and contribution to resilience of cleantech supply chains.
More flexible state aid guidelines were also proposed for national investments in cleantech manufacturing under the Temporary Crisis and Transition Framework. This allows national
governments, for a limited time, to support CAPEX investments in their national cleantech supply chains. It does not cover OPEX.
The European Commission has imposed anti-dumping duties on towers imported from China, increasing tariffs from 7.2% to 19.2%.
Germany Following European Commission proposals to allow more ‘state aid’, Germany is considering offering financial support to investments in domestic energy transition supply
chains, as well as wind and solar projects.
UK Through negotiation, the industry has agreed to a local content requirement (LCR) of 60% by 2030.
According to the UK government, making a LCR reality will require “significant inward investment activity” on capex elements of offshore wind projects.
Poland Under the Polish Offshore Wind Sector Deal, a level of LCR must be achieved at different stages: “at least 20-30%” of a project’s total value in the preparatory, installation and
operational stage for projects implemented under the first, pre-auction stage of the support system; at least 45% for projects implemented by 2030 under the second, auction
stage; and at least 50% for projects implemented after 2030.
Japan & South Korea Both have strong requirements for local content in wind projects that effectively require localisation of parts of the supply chain.
Taiwan Has produced a specified ‘list’ of components that must be localised, depending on the completion date of offshore wind projects.

GWEC | GLOBAL WIND REPORT 2023 35
 requirements and restrictions on Range of options for localisation
industry that do not result in better
rates of return for companies.
Prescriptive
Highly prescriptive taxes
The NZIA also sets an annual Component-specific requirements
wind-turbine manufacturing
capacity target of 36 GW for EU
member states, which is more than
double the 16 GW of wind turbines
installed in Europe in 2022.
However, unlike the clarity and
Incentive based
long-term visibility provided in the Income or production tax credits
IRA, the NZIA does not directly More collaborative approach
address the poor market
conditions that caused the
profitability of European wind measures to ensure high levels of have created a greater
turbine manufacturers to fall. Nor local content in their wind energy understanding of the need to
does it establish new EU funding sectors. The table below create a more diversified and
or financing mechanisms to scale summarises some of the measures resilient supply chain. However,
supply chains to the level required. being introduced by major actors. global trade flows continue to be
critical to global economic
Another key pillar of the EU’s plan, Some countries are reaching well manufacturing. Additionally, actions
the Critical Raw Materials Act, beyond manufacturing, going attempting to decouple from
states that by 2030 10% of raw ‘upstream’ to achieve local supply China and to reshore or localise
materials should be extracted and of critical inputs for their industries, manufacturing capabilities are
at least 40% of them processed in including specific steel products likely to create unintended
the EU. However, what’s not yet used in the wind industry and raw consequences in terms of
clear is how the potentially higher materials such as rare earth bottlenecks and higher costs.
costs of those materials will be elements. In some cases, this These in turn, could have the
distributed fairly among western includes inputs that are currently potential to slow, delay or even
supply chain companies. not produced locally, or are derail the global energy transition.
produced in small quantities.
Many other major economies, It is of critical importance that, as
including Japan, Korea, the UK, The COVID-19 crisis and its they are urged to act on the energy
Poland, India, Taiwan, Saudi Arabia aftermath (including widespread crises, governments around the
and Brazil already have – or are in disruption of logistics and world do not underestimate the
the process of designing – increased geopolitical tensions) potential impacts of poorly

36 GWEC.NET
 Part 3: The risks and opportunities of regionalisation

coordinated interventions. This is localisation requirements and generator), slewing bearings, l the availability of critical
why GWEC advocates urgent and argued instead for flexibility in towers, flanges, castings and components and materials
continued dialogue with the wind order to build on national and forgings. By comparison, according l the existence of a skilled
and renewables industry – along regional competitive advantages. to consultancy Wood Mackenzie, no workforce
with the wider network of key As a rule, GWEC is more powertrains or castings were made l the need to create or maintain
components and commodities supportive of incentive-based in the US in 2021. Even in some political support for continued
suppliers – to ensure that policies rather than prescriptive policies as countries where sophisticated market growth.
achieve the intended goals of the former tend to give more manufacturing supply chains exist,
supporting cost-effective and flexibility to both OEMs and the for example India, China is the For the offshore wind sector, a
faster deployment of larger supply chain in optimising their primary supplier of castings. strong degree of localisation is
quantities of renewables while production. imperative, since producing and
boosting local economies and How politicians, policymakers and assembling very large
employment. Measuring the impacts of regulators globally try to address components is best done portside,
reshoring this concentration in the supply facilitating installation in nearby
Governments have several choices As more reshoring policies are chain will have a critical impact on waters. Transporting fully
when they look to localise or being proposed and introduced the wind industry and its ability to assembled nacelles plus blades
reshore their energy sectors. They globally, it is important to reflect on deliver the capacity necessary for and towers from remote locations
can encourage the use of locally the potential impacts on costs and carrying out the energy transition and installing them in limited
produced content either through timing of wind installations. Any in the timelines outlined in the numbers would likely make
incentives and/or preferential time policies require local content, Paris Agreement. projects uneconomical.
treatment, such as tax incentives or either through restrictions or
favourable customs duties. incentives, there is a risk of Industry approaches to There is no exact formula for
Alternatively, they can specify increasing the overall costs of the localisation managing the trade-offs between
which goods or services must be wind power produced. Another As we have noted, wind project localisation and affordability.
provided by domestic suppliers. significant unintended operators and OEMs must take into Achieving the right balance can be
Or they can use a combination of consequence is the creation of consideration a series of complex, particularly challenging in new
both of these approaches. supply chain bottlenecks. interconnected factors when they markets that have yet to deploy wind
decide where to locate projects – and as such do not have
For GWEC members, localising Currently the wind supply chain is manufacturing facilities. These fully developed and/or competitive
production is a desirable approach highly globalised but with China as include: wind supply chains.
that can lead to significant the principal supplier at a
efficiencies and logistical savings. component level. GWEC Market l the size of local wind markets From a purely cost-driven point of
However, achieving necessary Intelligence’s global wind supply l logistical factors view, it makes more sense for
scale to amortise investments in chain analysis shows that China l the existence of national and countries to take a phased
industrial plants is a key concern. controls more than 70% of the regional incentives approach that allows imports of
The industry has advised global supply chain for powertrains l the existence of specific rules key components and aims to
governments against prescriptive (main shaft and gearbox plus around local manufacturing increase localisation as scale

GWEC | GLOBAL WIND REPORT 2023 37
 Part 3: The risks and opportunities of regionalisation

to their own advantages. For regulatory support the wind sector been adopted in the US through
example, for offshore wind, the needs to take off. This is particularly the IRA and would suggest that this
countries around the North Sea have true given the predominance of approach be adopted – and
built an array of interlinked industrial government-run auctions as the adapted, of course, to local
capabilities, a skilled workforce, port main procurement mechanism for circumstances – in other major
facilities and logistics around wind energy and the strong political energy markets such as the EU, the
installation and operations and levers that these create. UK, Japan and elsewhere.
maintenance. It would be desirable
for a similar cooperative ecosystem In the long run, as markets develop, As the world enters a phase of
to evolve to address APAC’s strong the growth of the wind energy significant acceleration of
demand for offshore wind, rather manufacturing sector and related renewable energy deployment,
than every country trying to quickly service sectors can play a key role with governments and the
evolve its own complete offshore in maintaining social and political private sector seeking to realise
wind manufacturing and installation support for the industry. As we heightened ambition, GWEC
supply chains. have seen in places as diverse as believes that the incentive
the UK, the US, Brazil and Denmark, approach will be a key
local manufacturing and differentiator for countries and
The incentive approach will be a key differentiator employment eventually translates
into long-term, bipartisan support
regions wishing to attract the
huge amounts of investment that
for countries and regions in attracting the huge for the wind industry, and creates a the energy transition will
virtuous circle of growth, require. Although the panorama
investments that the energy transition will require investment and higher political is evolving rapidly, it seems
ambition for the sector. clear that other countries and
regions are now scrambling to
increases. It is also important for However, as we have seen, cost In short, industry is usually willing to match the ambitious approach
countries to carefully consider considerations often take second accept some increase in costs in the US has taken and will risk
their specific advantages in terms place to concerns such as local order to achieve political and losing out if they don’t.
of access to materials and investment and job creation; the regulatory support and wider social
components at competitive prices, position of local industrial licence. But some ways of achieving GWEC also believes that the
existing industrial footprints and conglomerates; and political this are better than others. incentive-based approach will
availability of skilled labour. considerations around national play a key role in enabling the
control and rivalries with other The debate around the proposed wind industry to push beyond
Countries with relatively small actors. In many cases, strong approaches for achieving more the challenging period it has
domestic markets need to look to political factors make commitments local content is developing rapidly. faced over the last few years and
regional markets and plan how their to creating a local wind energy GWEC, as already noted, is begin to scale up for the next
industries can make the most of manufacturing industry a strongly supportive of the phase of global growth with
regional supply chains while playing prerequisite for achieving the incentive-led approach that has confidence.

38 GWEC.NET
 Part 3: The risks and opportunities of regionalisation

As has been widely noted, current countries’ legitimate expectations

market and procurement to benefit from the energy
arrangements – including ‘race to transition while maintaining a
the bottom’ pricing, unfavourable cooperative environment where
tender rules around ‘negative fair competition and scale benefits
bidding’ and low price caps – have play out. In the absence of frank,
created a highly unfavourable evidence-based dialogue, there is
environment for the wind energy a risk that low-carbon targets will
manufacturing industry. The be missed and the overall cost of
evidence so far suggests that the energy transition will increase.
incentive-based approaches to
stimulating supply chain Continued collaboration and
investment, such as the IRA and its dialogue are needed to achieve
precursors, will be much more the energy transition
effective than approaches based As the data in this report shows,
around prescriptive LCRs or trade policy- and market-led demand for
restrictions. wind energy will increase
dramatically in the coming years.
Government packages that enable And yet, due to unsatisfactory
transparent and widely available market conditions, permitting
access to incentives will improve bottlenecks and stop-start political
project economics and demand, support, investment in the global
provide strong impetus to sourcing supply chain has been insufficient
from domestic manufacturing and to prepare the industry for the
provide the visibility for the supply anticipated growth ahead.
chain to make long-term
investments. In contrast, attempts to Investment has been made most
force localisation without any consistently in China, creating a
measures to improve the world-class wind manufacturing
economics of the wind energy sector on the one hand, but
value chain risk increasing costs in creating a highly imbalanced
an already inflationary environment, global supply chain on the other,
ultimately further undermining the sparking legitimate concerns
profitability of the sector. around dependency and a lack of
resilience, particularly in the wake
Government and industry need to of COVID-19 and the post-
find the right balance between pandemic crisis in logistics.

GWEC | GLOBAL WIND REPORT 2023 39
 In order to meet the ambitions of policymakers intervene, and over globalisation. GWEC has
governments, energy consumers which time period. advocated a cautious approach
and wider society, the wind from policymakers involving full
industry needs to invest strongly in If poorly conceived or executed, consultation with relevant actors
increasing the capacity of the actions to impose rapid reshoring in order to fully understand
supply chain while simultaneously could lead to supply chain impacts from trade restrictions.
building resilience and bottlenecks (particularly in the EU
diversification. and the US, but also in other large The scale of the investment and
economies), potentially leading to production needed to carry out the
GWEC believes that material delays in the transition. energy transition will require
policymakers’ approach to this We have already seen the impact continued global and regional
task in the present period could of such bottlenecks on a more collaboration and the scaling up of
greatly impact the success of the localised scale in the past – the widespread investment. We believe
energy transition. Supply chain current situation could see far that it is imperative for policymakers
diversification and reshoring will more significant impacts. to come together to collaboratively
undoubtedly affect the costs of the design mechanisms that facilitate a
transition, but to what extent will GWEC recommends that streamlined, incentivised and
depend on how decisively policymakers, international accelerated energy transition.
institutions, the private sector and
civil society engage in a If designed properly and
comprehensive dialogue to build comprehensively, policies created
Trends in globalisation – here to stay?
supply chains that can meet the to enable the scaling up of the
Global trade is highly complex, and no l  ver the past five years, the
O requirements of the Just Energy supply chain and its diversification
region is close to being self-sufficient, largest economies have not Transition while ensuring that represent a huge opportunity for
a McKinsey Global Institute report systematically diversified the necessary inputs are available at the world. We will see in
points out. It makes a few key points: origins of imports. the right pace and without the risk subsequent sections how different
of sharply higher costs and countries and regions are
l No region is close to being self- l Alleconomies have vulnerabilities, bottlenecks. approaching the task.
sufficient. Every region relies on trade some more than others.
with others for more than 25% of at Similarly, the intensification of GWEC and the wind industry will
least one important type of good. l I nformed reimagination of global more restrictive trade practices be engaging in intensive dialogue
trade requires a granular approach and trade disputes could also with all stakeholders in the
l About 40% of global trade is both in mapping concentrated trade lead to price increases and coming months and years to
‘concentrated’, with importing relationships and in deciding on disruption – although the ensure we are playing our role in
economies relying on three or fewer action – whether to double down, evidence suggests that, despite achieving the scaled-up,
nations for this share of global trade. decouple or diversify. increasingly loud debate, we are confident and diverse supply
a long way from an end to chain the world needs.

40 GWEC.NET
PART 4: THE IRA IS SET TO TURBOCHARGE
THE US WIND SECTOR
 Part 4: The IRA is set to turbocharge the US wind sector

Inflation Reduction Act sets the stage for fundamental

transformation of the US wind sector
The Inflation Reduction Act (IRA) is For the American government, the Since President Biden signed the the broader economy. The
not only the single largest IRA amounts to a fundamental IRA into law, the American clean American Clean Power Association
investment in renewable power in reshaping of the global renewable energy industry has announced: (ACP) estimates the IRA will
the history of the United States, but energy supply chain, by deliver upwards of 550 GW of new
simply the largest investment in repatriating significant segments to l  ore than 65 billion USD of
M clean power through to the end of
climate action the world has ever American soil. From a global capital investment into clean the decade. Once in place,
seen. It is clear why the IRA has climate standpoint, the IRA keeps energy projects, enabling more renewable energy projects will
been widely received as hope alive for meeting the Paris than 30 GW of new clean energy deliver around 40% of the
‘transformative’ in its projected Agreement’s goal of limiting global capacity country’s electricity, equivalent to
impact domestically, from warming to 1.5C. l 32 new or expanded clean meeting the electricity needs of
renewable energy growth to job energy manufacturing facilities, 160 million homes in the country.
creation and society-wide benefits With so much to deliver, there is a including:
such as cleaner air. sharp focus from the wind l 6 new wind power The impact on the American
industry on local content manufacturing facilities (or economy will be profound as well.
requirements and effects on the reinvestment in existing plants) The business community will need
global supply chain. In the wider l 18 new solar manufacturing to invest upwards of 600 billion
global context of an expected facilities USD to bring these projects to
significant increase in wind l 8 new grid-scale battery market and create and support a
energy deployment across many storage manufacturing workforce of at least one million.
regions, it is worth exploring the facilities Local communities will earn
overall impact of the IRA as a l Nearly 14,000 new valuable dividends from these
model for transformative climate manufacturing jobs associated projects in the form of local jobs,
action and as a source of national with new facility announcements state and local tax revenues, and
and regional competition. l 3 billion USD in consumer increased economic activity. ACP
savings from accessing clean estimates rural American
While the IRA has already energy sources. communities will see 17 billion USD
yielded results in a short time, a in new state and local tax revenues.
crucial part of the big picture will ‘Transformative’ impact
be how the supply chain adapts It is hard to overstate the Critically, the investments enabled
over time to facilitate the transformative effects the IRA will via the IRA will deliver emission
projected growth. have on the US electricity grid and reductions and consumer energy

42 GWEC.NET
 Part 4: The IRA is set to turbocharge the US wind sector

cost savings. According to the ACP, of the country historically

US emissions will decline 40% dependent on the fossil fuel
while each consumer will industry, and in domestic
experience a saving of more than manufacturing capabilities.
1,000 USD per year on energy bills.
Support for domestic
A national supply chain in a manufacturing is poised to spur
global industry the buildout of a robust domestic
The IRA extends the production tax supply chain for both onshore and
credit (PTC) and investment tax offshore wind. Component facilities
credit (ITC) for wind and solar that have been idle in recent years
through 2024 before transitioning are contemplating restarting
to a technology-neutral tax credit production, while numerous
that will remain in place until 2032 equipment providers to the

Support for domestic manufacturing is poised to

spur the buildout of a robust domestic supply chain
for both onshore and offshore wind

or when electric-sector emissions offshore wind industry are

fall to 75% of 2022 levels, pursuing plants along the East
whichever is later. The legislation Coast. Recently, GE and Siemens
introduces a new clean energy Gamesa announced intentions to
component manufacturing PTC build offshore wind nacelle
– providing equipment manufacturing plants so long as
manufacturers with a component- sufficient orders materialise from
specific tax credit for each unit recent solicitations.
produced domestically.
Importantly, the US Congress Preferences for domestically
included provisions to boost manufactured components and
renewable energy investment in materials point to the emergence
low-income communities, regions of a more robust US clean energy

GWEC | GLOBAL WIND REPORT 2023 43
 Part 4: The IRA is set to turbocharge the US wind sector

Projected annual clean power capacity installations under the IRA supply chain. New manufacturing growth. China produces nearly
facilities, processing plants and 70% of all powertrains and 65% of
120 raw material production will castings, while the US produced
further catalyse economic growth none of either in 20211. While the
100 97GW
and job creation, with the intention US has enough manufacturing
85GW of insulating the US from capacity to supply most domestic
80
13% CAGR
75GW
geopolitical supply chain risks. demand for onshore turbine
68GW
equipment to 2031,the story is
58GW
60 53GW Protecting against those risks has different for offshore, where the US
44GW engendered criticism that the act is at a standing start. Whether
38GW
40
28GW 28GW
disadvantages foreign companies, enough capacity will come online
but the IRA has also set in motion a to supply all US offshore wind
20 new wave of climate and clean developments planned for
energy ambition. The EU has installation by 2027 remains a key
0
responded with its Green Deal issue.
e

e
21

22

industrial plan and other countries

23

24

25

26

27

28

29

30
20

20

20

20

20

20

20

20

20

20
are exploring their own responses. Beyond wind power, energy
Source: ACP, 2022 However, uncoordinated storage is eligible to qualify for the
government activity leading to an investment tax credit for the first
entrenchment of national and time, and green hydrogen can
US new wind power installations forecast (MW) regional supply chains risks access a production tax credit
20000 stalling the global wind industry’s rationed depending on the
growth. A coordinated and lifecycle emissions profile of the
balanced expansionist approach fuel’s production.
15000 from governments is necessary for
domestic markets to grow while With clear incentives and stable
ensuring a healthy global supply policies for the renewables
10000
chain that can deliver cost-effective industry in place, the ACP expects
clean energy. annual wind, solar and energy
5000 storage capacity installations to
Uncertainty remains on how grow to over 90 GW by the end of
quickly the global and American the decade, more than tripling the
0 supply chain can adapt to the new 28 GW installed in 2021. This
conditions created by the IRA, to growth will require unprecedented
22

e
23

24

25

26

27
20

deliver the scale of projected supply chain mobilisation and

20

20

20

20

20

Onshore Offshore
Source: ACP, 2023
1. https://www.woodmac.com/horizons/boom-time-what-the-inflation-reduction-act-means-for-us-renewables-manufacturers/

44 GWEC.NET
 Part 4: The IRA is set to turbocharge the US wind sector

careful coordination between the providers are looking to reinvest in

federal and state governments, and their domestic supply chains. In
also on a global level. effect, the legislation will help
ensure the US maintains a thriving
Solidifying the wind energy US-centric supply chain.
supply chain
The US wind industry is a The offshore wind industry is, in
successful example of onshoring many ways, in a similar situation to
manufacturing. Strong growth the onshore wind industry 20 years
beginning in the 2000s attracted ago. Growth prospects are enticing
core equipment providers to equipment providers to explore
establish US facilities. These major strategic investment in new
component manufacturers brought manufacturing plants. In fact, firms
their supply chains with them. As a have already announced more than

Growth prospects are enticing equipment

manufacturers to invest in new plants: firms have
announced plans to spend more than 2 billion USD

result, over 85% of wind turbine 2 billion USD in planned investment

nacelles are manufactured over the next few years, according
domestically and the broader to the ACP. The IRA’s manufacturing
supply chain includes more than PTC and the domestic content
500 factories churning out parts bonus for the PTC/ITC will firm up
and components for the industry. and potentially accelerate these
investments.
Previously, policy uncertainty
including impending expiration of However, challenges remain. The
the PTC had put much of the wind absence of Treasury guidance
industry’s supply chain at risk. Now, implementing the manufacturing
with over a decade of policy production credits and outlining
support in place, equipment the qualification requirements for

GWEC | GLOBAL WIND REPORT 2023 45
 Part 4: The IRA is set to turbocharge the US wind sector

the domestic content bonus are Wind at the heart of a clean

currently hindering investments. energy future
In February 2023, the Treasury The Biden Administration is
issued the first of two notices to targeting a 50-52% reduction in
provide guidance on how economy-wide emissions by 2030
taxpayers can benefit from the and a net-zero emissions grid by
manufacturing programme in the 2035. The electricity sector is
IRA. The Advanced Energy expected to make the largest
Project Credit – first enacted by contribution to economy-wide
the American Recovery and emission reductions this decade.
Reinvestment Act of 2009 – This means that renewables will
awards up to a 30% be the largest driver, and that
investment tax credit for wind energy – both onshore and
qualifying ‘advanced offshore – is critical to achieving
energy projects’, these targets.
including those that
enable the Annual wind additions are
production or expected to more than double
recycling of wind from roughly 10 GW per year
turbines, solar today to more than 20 GW by the
panels, heat end of the decade. These volumes
pumps, batteries will support continued investment
and electric in the domestic supply chain and
vehicle position the US as a top market
components. within the global industry.
Moreover, 4 billion
USD will be set aside Striving towards a net-zero
for investments in energy emissions grid by 2035 will require
communities that have seen further significant increases in
closures of coal mines or annual installation volumes. All
retirements of coal-fired power signals point to the same
plants in recent years.3 conclusion: the wind industry will
be a central component of the
USA’s clean energy future.
3. https://www.whitehouse.gov/cleanenergy/clean-energy-
updates/2023/02/13/treasury-issues-new-guidance-to- Co-authored with American
unleash-clean-energy-manufacturing/ Clean Power

46 GWEC.NET
PART 5: HOW EUROPE PLANS TO
RISE TO THE CHALLENGE
 Part 5: How Europe plans to rise to the challenge

How Europe plans to rise to the energy security challenge

while cementing the competitiveness of its wind supply chain
Europe has a big challenge This is the result of higher Permitting neutrality. This could speed up
ahead. In order to reach the uncertainty for new wind energy Slow and cumbersome permitting permitting significantly by helping
objectives of Europe’s new investments in 2022. Inflation remains one of the biggest solve the legal challenges related
energy security strategy, caused turbine prices to go up obstacles for the expansion of to new wind farms more quickly.
REPowerEU, it needs to build on over the past two years. And EU renewables in Europe. Some 80
average 30 GW of new wind governments enacted unhelpful GW of wind energy projects are The revised directive also aims to
energy capacity each year to and uncoordinated power market stuck in permitting procedures clarify which permits are included
2030. Yet, last year EU countries interventions to cope with the across Europe: they must be in the mandatory deadlines (two
only installed 16 GW of new wind energy crisis. The permitting unlocked as quickly as possible. years for new, one year for
capacity. And wind turbine orders situation in Europe is still not what The EU has set out to simplify repowered projects) for
went down 47% YOY whilst we it should be. All of these factors are permitting rules by amending the governments to complete the
saw hardly any final investment making the situation for Europe’s EU Renewable Energy Directive permitting process. This means
decisions in offshore wind. supply chain more precarious. and by putting forward that all administrative steps, grid
‘emergency measures’ allowing permits and environmental impact
governments more leeway to assessments (EIAs) will need to be
Evolution of wind energy investments in EU-27
simplify permitting. finalised within these permitting
35 deadlines. Achieving clarity on the
30
As part of the REPowerEU strategy procedural side is crucial for
the European Commission speeding up installations as it
25 proposed a number of important removes uncertainty for
GWs financed in the EU

20
reforms last summer to speed up developers on the interpretation of
the permitting of renewables. EU rules across the EU-27 national,
15 These now need to be negotiated regional and local jurisdictions.
10 and enshrined in EU legislation in
a revised EU Renewable Energy The revised EU renewables law will
5 Directive. also ensure that wind energy
0 development goes hand in hand
First is the proposal to consider the with biodiversity protection. The
12
13
14
15
26
17

8
19
20
21
22
23
24
25
26
27
28
29
30
21

expansion of renewables a matter amendments to the directive will

20
20
20
20
20
20

20
20
20
20
20
20
20
20
20
20
20
20
20

New capacity financed 2022 decrease Investments needed for 2030 of ‘overriding public interest’, strengthen the population-based
Source:WindEurope, 2023 enabling the EU to reach climate approach to species protection,

48 GWEC.NET
which is already part of EU them to existing ones should they Europe clean and digital transition.
environmental law. Doing so will wish to do so. Keeping and expanding a European
ensure a good working balance wind supply chain will reduce costs
between the parallel sets of public Some EU countries are already and energy bills for end consumers
policy interest that are renewables making use of the emergency rules while creating jobs and growth.
and biodiversity while contributing and are taking ambitious steps
to Europe meeting both its climate nationally to improve permitting. In response to the US IRA, the EU
objectives and its energy security Germany’s cabinet has already presented its Green Deal Industrial
goals. In addition, the revision approved and enacted most of the Plan in March 2023 to strengthen
envisages even faster permitting emergency measures. It is applying Europe’s clean energy industries.
deadlines in selected ‘go-to’ areas the concept of ‘overriding public The plan contains two important
where biodiversity risks are minimal. interest’ in court cases. France has pieces of legislation for the
voted on legislation that will speed European wind industry which
The final revision of the EU up the expansion of renewables, could allow it to deploy the right
Renewable Energy Directive is due and Spain is making an effort to investments and volumes going
to be completed in mid-2023. In fast-track the approval of wind and forward.
the meantime, EU governments solar projects stuck in a large
can apply the EU emergency backlog of environmental permit First is the Net-Zero Industry Act,
permitting framework adopted in applications. which targets the industrial
December 2022, which confirmed manufacturing of key technologies
renewables as projects of Industrial policy and equipment that are central to
‘overriding public interest’ so long Europe is also fast-forwarding its the European energy transition. For
as site location is correctly green industrial policy. 2022 was a wind, it sets an annual
selected and mitigation measures difficult year for the wind energy manufacturing capacity target of 36
are in place to protect biodiversity. supply chain, with Europe’s turbine GW. The act focuses on simplifying
It also clarified the permits that manufacturers and suppliers hit hard the permitting processes for new
need to be delivered within the by inflation, dysfunctional trade factories. It also identifies strategic
mandatory permitting deadlines flows, bottlenecks in the sourcing of dependencies across supply chains
for new and repowered projects, materials and poor auction designs and proposes actions to remove
advanced grid connections in some EU countries. existing bottlenecks and increase
approvals, and allowed simplified supply chain resilience.
EIAs for repowering – covering The EU agrees that it needs a
only the additional impacts linked reliable and cost-competitive wind Second is the Critical Raw Materials
to wind farm expansion. The supply chain to achieve its energy Act, which plays a key role in
measures are mandatory for new security goals. And that it must improving the sourcing of materials
projects and new permits, but continue investing in its wind for clean energy that Europe needs.
governments could also apply industrial base to deliver a made in The act explores opportunities for

GWEC | GLOBAL WIND REPORT 2023 49
 mining and processing more raw that alleviates the energy crisis potential of Contracts for
materials in Europe while forging burden for end-consumers while Difference (CfDs) and Power
new trade deals with partners that avoiding a reversal of 20 years of Purchase Agreements (PPAs). It
can diversify supply routes. It also European energy market should also leave space for
emphasises the importance of integration. The EU cannot afford to investors to access some market
recycling and reusing key materials get this wrong. revenue so they can meet their PPA
to help increase the resilience of obligations. This will be key for
Europe’s supply chains. The central response to the current companies managing large
crisis remains more energy supply, portfolios of energy investments
All of this will be underpinned by in particular with more homegrown across different markets, and for
some degree of EU public financial renewable electricity generation. building sound financing strategies
support, including, for instance, Europe’s EMD must therefore send for renewables.
channelling existing resources from the right investment signals to
the EU and national Recovery Plans deploy wind energy at scale and Equally importantly, the new rules
towards critical supply chains. The ensure that the EU’s investment must cement investment certainty.
European Commission and environment for future wind farms Market scale is achieved in
member states are discussing in remains attractive. countries where governments
parallel a more flexible framework respect the stability of existing and
for the allocation of state aid that can Therefore, the existing revenue caps awarded support schemes and
support industrial competitiveness. on inframarginal generators must be market-based arrangements, and
The EU is also considering setting removed and cannot serve as a where governments plan ahead
up a new EU Sovereignty Fund to starting point for EMD reform. In and provide regulatory visibility
finance investments in the strategic 2022, the EU adopted a temporary for the wind industry and its supply
sectors charged with delivering the emergency framework that allowed chain with concrete wind
EU Green Deal. governments to intervene deployment objectives. The EU
exceptionally on power markets to Renewable Energy Directive
Electricity Market Design control prices. Many EU prohibits retroactive changes to
Crucially, Europe is reforming its governments scrambled to existing support mechanisms and
Electricity Market Design (EMD) introduce revenue caps for requires governments to outline
this year. The current market inframarginal power generation in an forward-looking auction schedules
design has been beneficial by uncoordinated fashion – some even (timeline, budget, capacity) and
facilitating the integration of large taxed unrealised revenues. This has technology-specific auctions to
amounts of cost-effective undermined investor confidence attract investments. None of this
renewables. and halted investment in renewables. should be put into question as
Europe reforms its EMD.
EU policymakers are under The new EMD should allow
pressure to deliver a quick reform developers to leverage the Co-authored with WindEurope

50 GWEC.NET
PART 6: WILL CHINA CONTINUE TO BE THE
MARKET LEADER?
 Will China continue to be the market leader?
China is the world’s largest wind country’s newly installed power with wind and solar power
market. The country achieved generation capacity. China’s generation, at more than 1,000
record additions of 68.6 GW of renewable energy capacity will TWh, providing 13.8% of China’s
grid-connected onshore wind in continue to grow as the country electricity consumption.
2020 and 16.9 GW of offshore strives to meet at least half of its
installations in 2021 – a miracle incremental power demand growth Although renewable energy is
driven primarily by the complete with renewables under the 14th growing fast, coal power
phaseout of renewables subsidies. Five-Year-Plan. generation will still play a crucial
role this decade. A severe drought
Shifting from a subsidy-driven Political commitment paves the last summer saw Sichuan province
market to a pro-renewables way for long-term development suffer electricity shortages due to
market Since China’s President Xi Jinping its reliance on hydropower. New
Since 2022, China’s renewable announced the ‘30-60’ target in coal-fired power projects in
energy market has entered a new 2020 – to achieve peak emissions Sichuan were approved late last
stage. The support for renewables by 2030 and carbon neutrality by year to prevent a recurrence of this
has switched from a feed-in tariff 2060 – China has started working situation but will be built next to
(FiT) model to a ‘grid parity’ on the long-term goal of creating a large-scale renewable energy
model, whereby electricity new type of power system with facilities so that the flexibility
generated from renewables will renewables at its core. Speaking at offered by thermal power plants
receive the same remuneration as the 20th Party Congress Report in can support renewable energy
that from coal-fired power plants. 2022, the President said that the integration.
planning and construction of the
Nevertheless, the phaseout of new energy system should be How the 14th Five-Year Plan will
subsidies has not slowed the pace accelerated, providing a blueprint support renewables
of renewable energy development for energy security and low- From the Gobi Desert to the sea,
in China. Although new grid- carbon, green development. and from the Tibetan Plateau to
connected wind capacity in 2022 the vast plains, several 10 GW-
was only 37.6 GW – a 21% drop By the end of 2022, standing at level wind and solar farms have
from the previous year, mainly 1,213 GW, China’s installed been completed and put into
driven by COVID-19 restrictions – renewable energy capacity operation, such as Jiuquan in
installations of all renewables surpassed coal power for the first Gansu, Hami in Xinjiang, and
including hydropower, wind, solar time. Renewable energy now Zhangjiakou in Hebei. Gobi and
and biomass recorded a stellar accounts for 47.3% of the country’s other desert areas, including the
year, accounting for 76% of the total power generation capacity, upper reaches of the Yellow River,

52 GWEC.NET
 Part 6: Will China continue to be the market leader

China’s 14th Five-Year Period renewable energy development plan energy. Data centres are being
located in the vicinity of huge wind
farms in northern China to use
green electricity locally.

Long-term plans for green

hydrogen production are in place
in several provinces. Leading
energy companies have
established specialist subsidiaries
to develop hydrogen technology
Gansu
Nei Menggu
and business. In 2022, North China
Electric Power University started
offering a major in hydrogen
Qinghai science and engineering.

Giant onshore wind/solar Distributed wind projects will be

energy bases promoted in the vast rural areas of
China’s central and southeastern
Giant integrated energy bases
Hunan
(hydropower/wind/solar) regions. It is estimated that 10,000
turbines, totalling 50 GW, will be
Offshore wind bases installed near 5,000 villages during
the 14th Five-Year Period.

How the local supply chain will

Source: NDRC, NEA, 2021
cope with growth
With more than two decades of
the Hexi Corridor, the ‘Ji’ bend of The government plans to support a storage technology verification development, China has a well-
the Yellow River and Xinjiang, are number of demonstration projects, platforms, including solid-state established supply chain for the
seeing the construction of seven such as deep-water wind, high lithium-ion batteries, sodium-ion wind power industry. The
new energy bases. Hydro, wind efficiency solar cells, energy batteries and flywheel energy production of wind turbine
and solar installations are islands, large-scale renewable storage, are under research and nacelles and key components
planned for southeast Tibet, hydrogen, hybrid energy solutions development. accounts for 60-70% of the global
Sichuan, Yunnan, Guizhou and and smart microgrids in order to market share (see Part 2), which
Guangxi, with a number of promote technological innovation. Zero-carbon industrial parks being makes China a crucial contributor
offshore wind power bases also built across the country will require to the global response to climate
planned. In Inner Mongolia, seven energy large amounts of renewable change.

GWEC | GLOBAL WIND REPORT 2023 53
 Part 6: Will China continue to be the market leader

Average tender prices of wind turbines in China (CNY/kW) historic leap – from ‘following’ to
‘running alongside’ and now
‘leading’ – in wind technology
8000 development.
7000
Ambitious targets will boost
6000 offshore wind development
5000 Construction of several 10 GW
offshore wind bases is anticipated
4000
off the eastern coast, while a
3000 number of provincial and
2000
municipal governments have been
working on offshore wind
1000 development plans since 2020.
0
The market potential for offshore
20

20

20

20

21

21

21

21

22

22

22

22

23
wind is growing and the local
20

20

20

20

20

20

20

20

20

20

20

20

20
industry is ready to support annual
1

1
Q

Q
Onshore Offshore installations of approximately 15
GW. Last November, at the Global
Note: Prices are based on date of tender and include wind tower
Source: China Bidding Centre, February 2023
Offshore Wind Summit-China 2022
co-organised by GWEC in Haikou,
Hainan, the Chinese wind industry
More than 15 wind turbine in the long term as the large two-to-three years Chinese released an initiative that calls for
manufacturers are active in China. Chinese EPC contractors will likely turbine OEMs like Mingyang, 100 GW of offshore wind in China
Although the domestic market is shift their investment from thermal Goldwind and Haizhuang have by 2025, 200 GW by 2030 and
large, competition has become power plants to renewable released offshore turbines in the 1,000 GW by 2050. If this happens,
increasingly fierce, with record-low projects. 16–18 MW range. In February China will make up 50% of the
prices being reported in the past 2023, Envision launched the Global Offshore Wind Alliance’s
two years. To survive the domestic Leading wind turbine technology EN-220/10 MW model and two global offshore wind target for
price war, Chinese OEMs started Price pressure has acted as a weeks later SANY rolled out the 2050.
exploring opportunities overseas. driver of technology innovation, 230/8-11MW prototype in Beijing
Additionally, as the Chinese as Chinese wind turbine OEMs – the largest onshore wind China’s first floating offshore wind
government announced in have continued to launch new turbine in the world. turbine, the Three Gorges Pioneer,
September 2021 that it would stop turbines with greater power was installed in July 2021 in
funding new coal projects abroad, rating and bigger rotors to remain The Chinese wind power Yangjiang, Guangdong. Two demo
this will drive wind turbine exports competitive. Over the past equipment industry has achieved a platforms have been installed

54 GWEC.NET
 Part 6: Will China continue to be the market leader

since, and a couple of projects Floating offshore wind projects in Southern China Sea
have been announced. China’s first
floating wind platform with a water
Guangzhou
depth of more than 100 metres and
further than 100 kilometres from Shenzhen
shore, the ‘CNOOC Guanlan’ – will
be operational in June 2023. It will Hong Kong
provide electricity for the China’s first floating wind turbine
Wenchang offshore oilfield in China’s first floating wind platform with a water depth
Hainan. of more than 100 metres and an offshore
distance of more than 100 kilometres

Hainan China’s second floating wind turbine

In addition to these demonstration
projects, China also has a 1 GW 1 GW project: phase 1 (200 MW) to be
commissioned by 2025, phase 2 (800 MW)
floating offshore wind farm by 2027

planned by 2027 – potentially the

Source: GWEC Market Intelligence, March 2023
first project of this scale to be
installed globally. Planned for a
location off Wanning, Hainan Chinese wind market development (GW)
province, the first phase completed 80
a feasibility study in 2022. As
Chinese projects are usually 70
announced with very short lead
60
times, more floating wind projects
with expected commissioning 50
dates before 2030 may be
announced in the coming years. 40

China will continue to lead global 30

wind power development 20

Following its ‘30-60’ pledge, the
Chinese government committed to 10
non-fossil fuels achieving 25% of the
country’s primary energy mix by 0
2030. In February 2023, the National
21

22

e
23

24

25

26

27

28

29

30
20

20

Energy Administration (NEA)

20

20

20

20

20

20

20

20
predicted that generation from wind Onshore Offshore
and solar power will double by 2025 Source: GWEC Market Intelligence, March 2023

GWEC | GLOBAL WIND REPORT 2023 55
 Part 6: Will China continue to be the market leader

With annual installations

of 70–80 GW until
2030, China will remain
the world’s largest
wind market

from 2020 levels, with renewable

energy accounting for more than
80% of total new electricity
consumption by the same year.

To reach these targets, 250–300

GW of wind power capacity needs
to be added between 2021 and
2025. Since a total of 758 GW of
wind and solar power has already
been grid-connected by the end of
2022 – and more than 80 GW of
wind turbine orders were
announced and awarded in 2022
– GWEC Market Intelligence
expects China to hit its 1,200 GW
solar and wind target by 2025, five
years ahead of schedule.

With annual installations of 70–80

GW for the rest of this decade,
there is no doubt that China will
remain the world’s largest wind
power market.

56 GWEC.NET
PART 7: HOW TO ACHIEVE A JUST TRANSITION
 Part 7: How to achieve a just transition

Part 7: How to achieve a ‘just transition’

A just and equitable energy transitioning workers from carbon- displaced workers and create this is essential both to meet
transition (JET) is indivisible from a intensive sunset industries and demand for wind energy workers net-zero scenario pathways and to
successful pathway to global encouraging their entry into the along the supply chain. Education ensure that the necessary
net-tzero emissions. Because renewables sunrise industry. A can range from retraining or workforce is available to enable
people are at the centre of the wind and renewables-driven JET re-skilling programmes to wider the massive expansion required of
energy transition, communities promotes the socioeconomic community outreach. the global supply chain.
cannot be left behind in the effort welfare of all affected workers and
to mitigate harmful climate change. communities.1,2 JET received much attention at The role of the wind industry in
COP27 last November signalling a enabling a JET
As a leading agent of the global Investment and education are key clear appetite from the climate Energy transition pathways must
energy transition, the wind drivers of a JET. Investment can change community for a people- be designed to incorporate
industry must play an active role in facilitate education, support centred transition. Looking ahead, countries’ emissions, financing
needs and energy profiles –
Rare earth demand by end-use sectors and breakdown of magnet demand by mass, 2020 especially fossil fuel
dependencies. A multidimensional
transition must take place at a
national level, with appropriate
policy support, and locally through
value creation that ensures the
dividends of a JET are fed down to
29% 5.8%
impacted stakeholders.
38% Breakdown of the 7.55%
29% of demand There is often little understanding
represented by at the local level of what a JET
magnets 2.5%
1.75% means for communities. The wind
energy industry can increase local
11.4% awareness by highlighting the job
20%
1.ILO, 2015, Guidelines for a just transition towards
13%
environmentally sustainable economies and societies
for all
2. ILO, 2022, Just Transition Policy Brief, Gender equality,
labour and a just transition for all
Magnets Catalysts Polishing agents Others
3. IRENA (2017), Leveraging local capacity for
Consumer electronics EVs Wind turbines Air conditioning Others onshore wind
4. IRENA (2018), Renewable Energy Benefits: Leveraging
Source: IRENA, 2022
Local Capacity for Offshore Wind

58 GWEC.NET
 Part 7: How to achieve a just transition

creation potential of viable projects. the process of updating these

figures and will report on
Renewable energy employs progress later this year. As in
people of all trades and levels other sectors, there is a higher
across the full value chain, from proportion of female workers in
project planning to more junior roles.
decommissioning. IRENA’s
analysis3 shows that a 50 MW Upstream supply chain impacts
onshore wind facility creates As the wind energy industry
opportunities for more than grows, so will its impact on several
144,000 person-days, and a 500 sectors and communities. With up
MW fixed-bottom offshore facility4 to 90% of a wind turbine’s mass
for around 2.1 million person- being made of concrete, iron and
days.5 steel, there will be an increase in
demand for these three critical
The analysis also shows that over materials as installed wind
60% of the workforce in onshore capacity grows.7
wind, and over half in offshore
wind, requires minimal formal Increased wind turbine
training. Science, technology, manufacturing will also lead to
engineering and mathematics greater demand for REEs – a
(STEM) graduates make up around trend compounded by similar
28% of the onshore wind workforce pressures from other renewable
– 21% for offshore wind. Highly energy technologies and other
qualified non-STEM professionals sectors. Increased demand is
such as lawyers, logistics experts, expected for REEs including
marketing professionals and neodymium, dysprosium,
experts in regulation and praseodymium and critical
standardisation account for roughly minerals such as copper, nickel
5% and 20% respectively, while and zinc.8
administrative personnel make up
4% and 8%, respectively. 5. IRENA (2019), Future of wind: Deployment, investment,
technology, grid integration and socio-economic aspects
6. IRENA (2020), Wind Energy: A Gender Perspective
The proportion of women in the 7. WindEurope, 2022, response to the EU’s consultation on
renewable energy workforce is the Raw Materials Act
8. GWEC (2022), Global Wind Report
estimated at around 32%, with 9. IEA (2021), The Role of Critical Minerals in Clean
21% in wind energy.6 GWEC is in Energy Transitions

GWEC | GLOBAL WIND REPORT 2023 59
 Part 7: How to achieve a just transition

Mineral intensity for wind power by turbine type so far failed to sufficiently engage
with the communities that are most
Overall mineral intensity (kg/MW) Use of rare earth elements (kg/MW) affected – the highly coal-
dependent regions.
DFIG
The Planning for Climate
Gearbox
Commission (PCC) has made
significant progress in accelerating
PMSG a JET dialogue through a series of
multi-stakeholder consultations.
The PCC developed a just
transition framework that seeks to
PMSG engage in tackling various aspects
Direct drive

of the energy transition including

social support.12 These
EESG consultations are ongoing and
should continue in order to ensure
that the core principles of what the
0 3000 6000 9000 12000 0 50 100 150 200 250 just transition framework seeks to
Copper Zinc Manganese Chromium Neodymium Dysprosium do are fed down the value chain to
Nickel Molybdeum Rare earths Others Praseodymium Terbium all those affected.
Source: KIM Tae-Yoon, IEA/STO/ESIO
Multilateral social dialogue is
crucial to involving and engaging
Demand for REEs under chains for these materials, South and the global North. The all stakeholders in a JET.
sustainable development protecting disadvantaged or JETP model includes 8.5 billion Including the communities most
scenarios is forecast to increase vulnerable mining communities. USD in funding coupled with affected by the coal phaseout,
fourfold by 2040.9 The wind access to technical expertise for educating and supporting them
energy industry must operate South Africa and Indonesia: the knowledge-sharing.10 through the transition, will make
sustainably and with good rise of the JET Partnership the difference between
governance across the supply The Just Energy Transition South Africa has been a frontrunner conceptualisation and
Partnership (JETP), announced at in JET engagement, acknowledging implementation of a JET.
COP26 in November 2021, is a it in the country’s climate
10. Annex to G7 Leaders Statement Partnership for
Infrastructure and Investment collaborative agreement between commitments (NDCs) under the Other countries will use similar
11. https://www.wri.org/update/south-africa-strong- South Africa and France, Germany, Paris climate agreement as early as JETPs as a financing mechanism
foundations-just-transition
12. https://www.climatecommission.org.za/just-transition- the UK, the EU and the US to create 2015.11 While it understands the for JET implementation. The G7
framework a synergy between the global need for a JET, the government has alluded in 2022 to using JETPs to

60 GWEC.NET
 Part 7: How to achieve a just transition

support a JET in African and Asian also their supply to the grid. This States in the US have typically taken Policy recommendations
countries such as Indonesia, India, will underpin the case for a coal a localised approach to assessing 1. Commit to a diverse, equitable
Senegal and Vietnam.13 At the Bali phaseout driven by the credible the impacts of the energy transition and inclusive workforce
G20 summit, held in November prospect of a sufficient volume of on their workforce. The growth of through outreach.
2022, Indonesia launched its JETP clean energy to replace it. the offshore wind sector is opening Mainstreaming diversity, equity
supported by the International up opportunities for workers in and inclusion in the workforce
Partners Group (IPG), which The South Africa initiative has the other industries to pursue a career requires commitment and action
includes the US, Canada, Japan, the potential to pave the way for in the green economy – facilitated across company segments, from
EU, the UK, Norway, Germany, longer-term climate action through by reskilling and training human resources to marketing
France, Italy and Denmark. Over a policy instruments like the JETP. investment, alongside stakeholder to senior leadership. The wind
period of three to five years, the Other coal-dependent countries engagement. sector should be seen as an
Indonesian JETP promises to can look to South Africa to see the attractive and welcoming place
mobilise 20 billion USD worth of links between a just transition, Examples of this include:
investment.14 achieving national decarbonation
goals, and meeting NDCs . l  OEM Carolina Long Bay
B Diversity should encompass
Increased investment will only offshore wind auction: bidders
drive a JET if the funding is actually United States and the Inflation are awarded a 20% monetary gender, ethnicity and
fed into localities to accelerate Reduction Act: investment in credit to support workforce
physical ability
renewables projects. One training and local supply chains training programmes to develop
challenge the wind sector and The Biden Administration’s the local supply chain. The total
16

other renewables are facing is a Inflation Reduction Act (IRA)15 is a credit awarded is around 42
lack of agency, with funding being national policy framework that million USD. to work at different career
set out but not fed into the project promises to further the just stages. Youth outreach and
pipeline. This must be actively transition by enabling local l The North America Building education can ensure that the
challenged: if local projects and production and job creation Trade Union (NABTU) and industry’s diversified job
infrastructure are not implemented, through an unprecedented array Ørsted: a Project Labour opportunities are understood,
the JETP risks losing credibility. of measures facilitating investment Agreement (PLA) brings particularly in early-stage wind
into good jobs and mitigation together the private sector and countries. Diversity should
If coal is to be phased out in measures that protect impacted the unions to help the US encompass gender, ethnicity
coal-dependent areas, the supply workers and communities. workforce meet the and physical ability. A cultural
of renewables needs to grow requirements of the offshore change in companies will enable
significantly. To achieve this, By specifying the workforce and wind farm supply chain.17 them to leverage the talent of
countries need to create enabling communities as key stakeholders
13. https://www.g7germany.de/resource/blob/974430/2057928/1315842ed9de069fa1be82dab18dabb2/2022-06-28-leaders-communique-
regulatory and economic that should benefit from this executive-summ-data.pdf?
conditions that support and investment, it sends a clear signal to 14. https://www.gov.uk/government/news/indonesia-just-energy-transition-partnership-launched-at-g20
15. https://www.epa.gov/green-power-markets/inflation-reduction-act
facilitate not only the deployment investors and civil society that a 16. https://www.doi.gov/pressreleases/biden-harris-administration-announces-winners-carolina-long-bay-offshore-wind-energy
of renewable energy assets but green economy can provide stability. 17. https://nabtu.org/press_releases/nabtu-orsted-sign-landmark-mou/

GWEC | GLOBAL WIND REPORT 2023 61
 Part 7: How to achieve a just transition

women and people from more sustainable local supply 5. Investment to facilitate
minorities. chains and jobs. Governments retraining, reskilling and
and the wind industry should sustainable job creation.
2. Drive social dialogue and collaborate to review local Governments and the private
increased stakeholder industrial supply chains and sector should provide funding
engagement both nationally foster the creation of decent towards training and reskilling
and locally. Creating space for jobs. Schemes to incubate programmes that can benefit
social dialogue and increasing businesses and capabilities for them both. Investing into the
stakeholder engagement the wind sector, such as workforce will benefit the
supports social cohesion and a favourable loans and the economy at large while
common understanding of the promotion of industrial enabling the private sector to
challenges and opportunities clusters, will support the tailor skills to its project
ahead. Stakeholders include creation of viable local supply requirements. The investment
displaced workers, residents of chains. will pay off in multiple ways and
communities hosting projects boost the green economy.
and members of affected 4. Tailored reskilling/
communities such as the fishing retraining pathways to 6. R
 egulations in mining and
industry for offshore wind. The transfer from carbon- extractive communities to
need to discuss a JET is well intensive industries to wind ensure an ethical work
understood but the dialogue industry jobs. Acknowledging environment. National policies
needs to translate into national varying skill sets and must ensure that working
ambition, alongside transparent providing tailored training conditions do not allow the
local engagement, for programmes will reduce the exploitation of workers, and that
communities to understand and barriers to entry into the wind mining communities for REE
feed into the actions that will workforce. Having identified and other critical materials are
affect them. viable projects, the public sustainable. Because these
sector and the wind industry materials come from a limited
3. Promote public-private should work together to number of countries, targeted
collaboration to create value identify communities of need regulation is needed to protect
locally. Regions that depend and match them with the workforce and promote
on the production of fossil fuels anticipated workforce gaps. growth in the wind energy
for revenue may face By supporting career sector. Standards must be set to
economic displacement in a progression pathways for avoid greater demand leading
rapid phaseout. On the path to fossil-fuel workers into to more exploitation, and strictly
decarbonising their energy renewable energy, the public enforced to protect the rights of
systems, they must be sector will encourage labour workers and provide them with
encouraged to transition to mobility and upskilling. decent working conditions.

62 GWEC.NET
CASE STUDIES
 Case Study: Global Alliance for Sustainable Energy

Global Alliance for Sustainable Energy

The Global Alliance for Sustainable Structure of the Global Alliance for Sustainable Energy
Energy is an independent
organisation that aims to make the MEMBERS
Secretariat
renewable energy sector fully
sustainable throughout its value
chain. The alliance brings together
NGOs, utilities, suppliers, Industrial members
developers and end-users to tackle
the climate emergency and reach
net zero while improving people’s
Advisory members Supporting member
quality of life.

The Alliance’s scope of work spans

supply chain decarbonisation, FOCUS AREAS
circular design criteria, human and
labour rights, biodiversity, and
more general progress towards a
just and sustainable energy Supply Chain Circular Design
transition. Human/Labour rights Decarbonisation Criteria Biodiversity

Since its inception in 2022, the OUTCOME

Alliance’s work has been focused
on Circular Design Criteria.

The Circular Design Working

Group’s position paper outlines a Defined industry-wide sustainability standards and KPIs
circular design strategy that aims
to minimise waste and pollution
while preserving resources. The
world’s current linear economy environmental degradation – must of life’ reuse, repurposing or the relevant participants in the
model, defined by a take-make- evolve into a circular economy recycling of component parts. energy sector to improve
dispose approach – which results system that considers the entire transparency, circularity and the
in the depletion of natural lifecycle of a product, from raw The Alliance’s ambition is to be overall sustainability of the sector
resources, waste generation and material sourcing through to ‘end the missing link that connects all by widely spreading the definition

64 GWEC.NET
of sustainability standards and the produced/acquired with Certified common understanding between
adoption of best practices. EPD/LCA with explicit bill of utilities and suppliers on
materials by the end of 2024. climate-compatible buying
The following are examples of strategies.
elements put forward by the l Traceability and auditing for at
alliance for integrating into tender least two key raw materials used The Global Alliance for
processes between suppliers and in one main component by the Sustainable Energy was initially
clients: end of 2024. convened by the Enel Foundation.

l A ’bill of materials’ and

Environmental Product
Declarations (EPD) / Life Cycle Utilities and suppliers must establish a common
Assessments (LCA) to be used understanding on climate-compatible buying
as metrics to reward suppliers
aligned with requirements such strategies to drive supply chain decarbonisation
as limits or bans on specific raw
materials, thresholds for
recycled raw materials, CO2 and
water footprint.
l Traceability and auditing for all It includes industrial members
l Traceability information to applicable key raw materials Enel Green Power, Energias de
guarantee the complete visibility used in one main component by Portugal, Adani Renewables,
of all the actors involved in the the end of 2025. Electrobras, Iberdrola, NTPC,
supply chain. Goldwind, Nordex Acciona,
l  ne key raw material used in
O Prysmian Group, Trina Solar,
l A raw material assurance one main component to be Risen, JA Solar and 3M.
framework to drive visibility and certified by the end of 2024.
adoption of materials that are Advisory members include
transparently certified according l All applicable key raw materials Student Energy, Youth Climate
to international industry used in one main component to Leaders, Politecnico di Milano and
standards. be certified by the end of 2025. Politecnico di Torino. It counts
IRENA’s Coalition for Action as a
Alliance members have set the Complementary to the Alliance’s supporting member.
following targets based on the Circular Design work is a focus
recommendations put forward: on supply chain decarbonisation As of 2023, GWEC and the Global
across scopes 1, 2 and 3, driven Solar Council are jointly running
l 100% of new equipment by the need to establish a the Secretariat.

GWEC | GLOBAL WIND REPORT 2023 65
 Case Study: Women in Wind

Women in Wind
The wind energy industry is still Women in Wind (WiW) was formed
heavily male-dominated, with only in 2019 to address this gap in the
21% of the global wind energy wind industry. It aims to support
workforce being women – lower and encourage the advancement of
than the renewables sector overall women in the wind energy sector
and lower than the oil & gas by providing them with the
industry – according to the necessary skills and opportunities
landmark Wind Energy: A Gender to become leaders in their field.
Perspective report, published in
2020 by the Women in Wind Looking ahead, WiW aims to lead
Global Leadership Program (WiW) by example and to work with
in partnership with IRENA.1 companies within the wind sector

WiW supports and encourages the advancement

of women in the wind energy sector

While GWEC and its partners are to actively implement the

proactively working to make principles of equality by curating
progress on this – and the data is organisation-wide policies that
being updated – the report, which promote gender diversity in areas
was based on a survey of more such as recruitment, and career
than 1,000 people working in wind, progression for women at all levels.
revealed a significant leadership This will require regular reporting
imbalance, with women occupying to ensure progress is well
just 8% of senior management communicated, visible and fully
positions in the global wind energy accountable.
sector. Most women in the sector
are employed in administrative and By addressing the
non-STEM roles. underrepresentation of women in
1. https://www.irena.org/publications/2020/Jan/ leadership positions in the wind
Wind-energy-A-gender-perspective energy industry, WiW also seeks

66 GWEC.NET
 Case Study: Women in Wind

to drive innovation and growth in

the sector, and to encourage a
more diverse and inclusive
culture.

Programme methodology
Currently recruiting its fifth cohort,
WiW is an intensive 12-month
programme covering a range of
learning and development
activities including online courses,
workshops, mentoring and
networking events.

The programme has been

designed to be flexible, allowing
participants to fit their learning and
development activities into their
existing work schedules.

Key outcomes
Increased representation in
leadership positions
As a result of the programme,
several participants have been
promoted to leadership positions
within their organisations, and
many others have taken on
additional responsibilities and
expanded their professional
networks.

Improved leadership skills

and confidence
Participants have reported a
marked improvement in their
leadership skills and confidence,

GWEC | GLOBAL WIND REPORT 2023 67
 Case Study: Women in Wind

with many citing increased Profiled participants from the 2022 cohort
visibility, better communication
skills, and a more positive outlook
as key benefits of the
programme.

Increased diversity and inclusivity

The programme has helped to
raise awareness of the importance
of diversity and inclusivity in the
wind energy sector, and has
provided a platform for
participants to share their Van Nguyen Thanh Kholoud Bakry
experiences and best practices. Head Of Engineering And Site Engineer, Lekela Power
Construction, UPC Renewables
Stronger professional networks Vietnam Management LLC Kholoud Bakry is a Site
Participants have established Engineer, working on
strong professional networks with Van Nguyen manages Vietnam optimizing the operational
their peers, mentors and industry projects at UPC Renewables. Since performance of a 250 MW utility
leaders, which provides valuable June 2018, she has worked on scale wind power project of
opportunities for collaboration and projects through various stages, Lekela Power. Kholoud has
support. from development to construction, been with Lekela, since 2020,
including Lac Hoa and Hoa Dong. leading multiple project
Over the past five years, WiW has Van is currently leading on two 50 management activities during
succeeded in supporting the MW projects, Tran De and Song construction and until
advancement of women in the Hau. Her project control team commercial operation. Kholoud
wind energy sector and saved up to 9 million USD during holds a Master’s degree in
encouraging a more diverse and contract negotiation and claim Renewable Energy Engineering
inclusive culture in the industry. resolution. She holds a master’s from the British University in
The programme has provided degree in International Project Egypt. Kholoud’s career in
participants with the skills and Management from Glasgow renewables started with the
opportunities they need to Caledonian University, Scotland. Arab Program for Sustainable
become leaders in their field, and Her career goal is to promote Energy Youth with the Regional
has helped increase the clean energy and to be part of a Center for Renewable Energy
representation of women in team that inspires the Vietnamese and Energy Efficiency, where
leadership positions in the wind people to transition away from she worked on the development
energy industry. coal and thermal energy. of RE & EE regional programs.

68 GWEC.NET
FOCUS ON OFFSHORE WIND
 Focus on offshore wind

Offshore wind: turning targets into turbines

As a scalable, affordable and Alongside net-zero targets, many design, and supply chain and
commercially available energy countries are setting specific industrial policy. GWEC observes
technology with the capacity to offshore wind targets – with at least that many markets are still lacking
produce tremendous amounts of 16 governments2 setting or adequate policy and regulation to
power, offshore wind has the increasing them since the 2022 facilitate offshore wind
potential to rapidly displace fossil edition of this report. This includes development. At the same time,
fuels – delivering economic growth subnational jurisdictions like the there is a great deal of global best
and bolstering energy security. Australian state of Victoria (9 GW practice to learn from, especially
Offshore wind also opens up the by 2040) and the Canadian through public-private
opportunity to scale the production province of Nova Scotia (5 GW by partnerships, to help nascent and
of green hydrogen and power-to-X, 2030). emerging markets speed up the
thereby aiding in the regulatory process.
decarbonisation of energy- In September 2022, energy
intensive sectors. As a major ministers from the nine members There have been some notable
source of green jobs, from of the North Seas Energy achievements in a number of
manufacturing of turbine Cooperation (NSEC) agreed to emerging offshore wind markets.
components through to installation reach at least 260 GW of offshore Australia launched its first offshore
and operation, offshore wind is wind capacity by 2050. China wind leasing round in the
increasingly seen as a positive targets 100 GW by 2025, 200 GW Gippsland area. The US market
economic driver. by 2030 and 1,000 GW by 2050. continues to expand rapidly, with
South Korea’s 10th Basic Plan, the landmark Inflation Reduction
In 2021, GWEC and IRENA signed released in December 2022, Act (IRA) heralding a new era in
a UN Energy Compact, pledging to targets 14.3 GW by 2030. the international race for offshore
work together to deploy the 2,000 wind and a green economy. With a
GW of offshore wind needed by Despite setting such ambitious new government in place, Brazil is
2050 to reach net zero.1 This targets, countries and governments making great strides in
requires a huge upsurge in are still struggling to turn them into establishing an offshore wind
installations, with 35GW of offshore action at the speed needed to fuel industry (see page 84). Meanwhile,
wind to be added annually in the the global energy transition. offshore wind in India is moving
coming decade, starting from a Offshore wind is a complex forward rapidly (see page 87).
global total of just over 60 GW infrastructure requiring detailed
1. UN Energy Compact
today. Only China has so far shown knowledge and experience of 2. South Korea, China, Victoria, Nova Scotia, Belgium,
the ability to deliver offshore wind robust marine governance Denmark, France, Germany, Ireland, Luxembourg, the
Netherlands, Norway, Sweden, Portugal, New Jersey,
at this scale and speed. frameworks, electricity market Louisiana

70 GWEC.NET
 Focus on offshore wind

Progress has been less marked lifted restrictions on foreign predictable project pipelines and (EIA) timelines, largely stemming
elsewhere. Vietnam, with 599 GW ownership in renewable energy the policy infrastructure for from local fishing community
of offshore wind potential, faces and awarded more than 50 wind massive scale-up. resistance.4 GWEC welcomes the
major policy uncertainty as the energy service contracts for more government’s intention to move to
Power Development Plan 8 (PDP8) than 40 GW of offshore wind There were high hopes for Japan a central system of allocation and
targeting 7 GW of offshore wind by capacity. However, the government following the launch of its First stands ready to support these
2030 remains in draft form since its has yet to draft the rules and Vision for the Offshore Wind Power efforts.
release in March 20213. Vietnam’s regulations governing the activities Industry in 2020. It has since
Ministry of Industry and Trade of offshore wind farms, from started drawing out designated Taiwan’s Round 3.1 was highly
(MOIT) is seeking to develop an pre-development to operation. sea areas that will be dedicated for contested with seven offshore wind
auction framework for offshore general auction. However, projects being awarded to nine
wind but regulations on site More mature markets like Japan, concerns have been raised about developers. However, concerns
surveying and marine spatial Taiwan and South Korea have basic the transparency of the selection persist about auction design,
planning are unclear. policy frameworks that enable the criteria for the offshore tender,
initial deployment of offshore wind compounded by lengthy 3. Global Wind Report (GWEC, 2022)
4. Japan’s Offshore Wind Faces High Risks on the High
In the past year, the Philippines projects but lack robust policy, Environmental Impact Assessment Seas (BNEF, 2019)

GWEC | GLOBAL WIND REPORT 2023 71
 Focus on offshore wind

including an unrealistically low more and more areas look to build transformation programme that
price cap and poor flexibility in their offshore wind capacity. This promotes collaboration across the
terms of the localisation calls for initiatives that facilitate supply chain to improve
requirement. skills and knowledge transfer, and productivity and facilitates shared
for national governments to move growth opportunities between
Vestas recently invested 300 away from ‘business as usual’ developers and the supply chain.
million USD in South Korea5, approaches. Strengthening
confirming the country’s collaboration through public- The Global Offshore Wind Alliance
increasing attractiveness as the private partnerships is the key to (GOWA)8, a global diplomatic
next high-potential offshore wind closing the gap between reality initiative launched at COP27 by
market. Despite a relatively mature and ambition by building on Denmark, IRENA and GWEC, aims
supply chain, South Korea has yet existing industry strength to unlock to create a multi-stakeholder
to finalise a one-stop-shop (OSS) the world’s offshore wind potential community to achieve 380 GW by
bill that would truly kickstart and enable global scale-up. 2030 and beyond (see page 79).
offshore wind development.

Public private partnerships will Industry and governments can work together
accelerate deployment
Accelerating offshore wind to accelerate deployment through existing
globally at the scale required to technologies and robust policy frameworks
deliver on the energy transition will
require unprecedented efforts
from both governments and the
private sector, working together in The UK’s Offshore Wind Sector Conditions for accelerating
partnership. Deal6 is an attractive model that offshore wind development
brings the government and Industry and governments can
As the test bed of large-scale, industry together, each with clear work together to unblock
commercial offshore wind roles and responsibilities, to bottlenecks and accelerate
deployment, Europe has enabled overcome challenges to offshore offshore wind deployment through
the industry to acquire wind development. The sector deal existing technologies and robust
considerable knowledge and sets out collaboration across areas policy frameworks.
expertise. The cumulative offshore such as supply chain growth,
wind experience will advance system integration, skills and future 5. https://www.koreaherald.com/view.
php?ud=20230119000218
across a variety of structures workforce. The Offshore Wind 6. https://www.gov.uk/government/publications/
including regions, states and Growth Partnership7 sits alongside offshore-wind-sector-deal
7. https://owgp.org.uk/
countries with different demand the sector deal as an industry- 8. https://www.irena.org/Energy-Transition/Partnerships/
profiles and growth aspirations as funded long-term business GOWA

72 GWEC.NET
 Focus on offshore wind

GWEC has identified some urgent can also help capture benefits and
next steps that we recommend opportunities related to
governments take if they are to biodiversity and nature
take full advantage of the energy conservation, ensuring the wind
independence and socioeconomic industry continues to be a leader
benefits that offshore wind can in delivering positive
bring. socioeconomic outcomes for all
communities. Effective permitting
Permitting relies on streamlined regulatory
Globally, offshore wind projects frameworks and a coordinated
typically take up to nine years to approach within a country,
move from early development including models like a an OSS
stage to full commissioning9. The approach, the open-door scheme,
bulk of this time is spent in the and fast-track procedures.
permitting and consenting stage,
with timelines stretching even Establishing a single contact point
further when there are barriers or will ensure a smooth and
delays in the permitting process10. administratively lean process from
Generally, once permitted, large- consenting through to
scale offshore wind projects can decommissioning. The concept of
be constructed very quickly – an OSS has long been used in
typically in two years, depending mature European markets like the
on project size.11 UK and the Netherlands. Learning
from European best practices,
Done right, effective permitting other countries are now starting to
regimes can unlock significant adopt this approach. In 2022, Brazil
amounts of offshore wind capacity, introduced an OSS system through
enabling it to contribute to an information portal that manages
economic growth, as well as to the offshore areas used for power.12
provision of large-scale, South Korea’s National Assembly
homegrown clean electricity. has been discussing a proposed
Holistic approaches to permitting OSS Bill13 to make progress on the
9. GWEC, Five Point Plan (2022)
10. GWEC’s Statement on Implementing Vietnam’s PDP 8 Target and Net Zero Commitment (2022)
11. Joint Statement by GWEC and the Global Solar Council at the G20 Investment Forum on Energy Transition (2022)
12. Ordinance N.3 of 19 October 2022, https://www.in.gov.br/en/web/dou/-/portaria-interministerial-mme/mma-n-3-de-
19-de-outubro-de-2022-437756126
13. Special Act on Offshore Wind Power Development (SAOWPD)

GWEC | GLOBAL WIND REPORT 2023 73
 Focus on offshore wind

go-to areas, the Council agreed leading to overheated seabed

Seabed allocation is rarely linked to offshore that permit-granting processes markets in some countries or
should not take longer than one regions, as a result of lengthy,
wind or climate targets, leading to overheated year for onshore – and two years decentralised approaches to
seabed markets for offshore – renewable energy
projects, to be extended by up to
seabed allocation and constraining
auction caps. The ‘lumpy’
six months in extraordinary procurement that results from this
current system, which requires Fast-track permitting procedures circumstances. approach can limit supply chain
offshore wind developers to spend are also helpful. In December growth. Most jurisdictions also fail
up to ten years or longer 2022, the European Council Leasing to consider the environmental
consulting 29 pieces of law across agreed on accelerated permitting A significant barrier for the global impacts from competing uses of
10 ministries, according to the rules for renewables in the wind industry is a scarcity of sites: the sea in a holistic way. In the
SFOC14. In Vietnam, an OSS model REPowerEU.16 The updated policy seabed allocation is rarely linked absence of a strategic approach to
has been mooted, grounded in the creates dedicated ‘go-to’ areas for to offshore wind or climate targets, spatial planning, wind projects can
National Steering Committee on renewables including shortened 14. SFOC is a Seoul-based non-profit organisation focused on climate action and energy transition
Marine Economic Development and simplified permitting 15. Do, T. N., Burke, P. J., Hughes, L., & Thi, T. D. (2022). Policy options for offshore wind power in Vietnam. Marine Policy,
established in 2020, chaired by the processes in areas with lower 141, 105080. https://doi.org/10.1016/j.marpol.2022.105080
16. https://www.consilium.europa.eu/en/press/press-releases/2022/12/19/repowereu-council-agrees-on-accelerated-
Prime Minister.15 environmental risks. For renewable permitting-rules-for-renewables/

74 GWEC.NET
 Focus on offshore wind

be delayed, creating bottlenecks to Development Statement to drive While the commercialisation of this Floatgen, installed at the offshore
growth and to the achievement of longer-term supply chain technology is still in its early test site in 2018.
climate targets. investment. stages, to date 35 countries have a
hydrogen plan and 17 are Auction design
GWEC would urge governments Deploying offshore wind at the preparing one, according to BNEF. (non-price criteria)
looking to establish their first speed and scale required for the IRENA identifies China, the EU, After a decade of cost reductions,
leasing process to consider the energy transition will necessitate India, Japan, South Korea and the offshore wind is at an inflection
short- and long-term trade-offs new approaches to leasing that US as early adopters. point with a highly competitive
when it comes to leasing fees and prioritise volume. An intriguing LCOE that is now 3 USD/MWh
allocation. Uncapped competitive new model has emerged from In Australia, green hydrogen is at below that of coal and 18 USD/MWh
allocation of leases, for example, Denmark, where the Open Door the centre of global below that of gas.18 While achieving
may result in higher short-term policy would allow developers to decarbonisation strategies. In
revenues for leasing authorities, identify potential sites, undertake preparation for Australia to
but to the longer-term detriment of preliminary investigations and become a major hydrogen Deploying offshore wind at
electricity consumers. Uncapped secure grid connections. At the exporter, the government the speed and scale required
competitive allocation may also not time of writing, the scheme had published in early 2022 a National
contribute to more holistic supply regrettably been suspended. The Hydrogen Strategy. With a vision to necessitates new approaches to
chain growth outcomes. industry hopes that the Danish
government reconsiders.
be at the forefront of renewable
hydrogen production and export,
leasing that prioritise volume
In the UK, The Crown Estate, the Queensland State Government
which owns the territorial seabed Hydrogen launched the Hydrogen Industry affordable electricity remains the
out to 12 nautical miles off Green hydrogen and power-to-X Workforce Development Roadmap key priority, it is also important for
England, Wales and Northern can drive the transition in transport 2022-2032 at the Australian Clean the industry to scale up while
Ireland, is legally required to and the hard-to-abate sectors. Energy Summit in July 2022. maximising the overall industrial
achieve ‘best consideration’ for its Green hydrogen solutions could and system value for offshore wind.
dealings. The competitive bidding decarbonise iron and steel, Offshore wind has a central role
approach, however, raises the long-haul aviation and shipping. to play in green hydrogen The introduction of the IRA in the
concern that additional costs will As renewable electrification and production. In 2022, the world’s US to drive domestic
find their way into prices paid by storage technologies continue to first offshore green hydrogen manufacturing capability, regional
consumers. GWEC would instead advance, green hydrogen has the production platform was transmission and investment is
encourage emerging markets to potential to be employed across inaugurated in France. The heralding a new era in the
look towards Scotland’s ScotWind all sectors. With accelerated electrolyser, supplied by Plug international race for offshore
leasing model, where bidding deployment, its costs can be Power and developed with Lhyfe, wind. The beneficial changes to
fees were capped to 100,000 GBP competitive with blue hydrogen is the first capable of operating on the tax credit available, when
per square kilometre. The by the early 2030s. Green a floating platform.17 It will use
ScotWind process includes a hydrogen also has great export electricity supplied by BW Ideol’s 17. Lhyfe (2022) inaugurates world’s first offshore
renewable hydrogen production pilot site
mandatory Supply Chain potential. floating offshore wind turbine 18. 2H 2022 Levelized Cost of Electricity Update (BNEF)

GWEC | GLOBAL WIND REPORT 2023 75
 Focus on offshore wind

implemented successfully, will

create a robust domestic supply
chain to enable project
development in the long term.

One way to encourage effective

system design, and to capture the
greater socioeconomic value that
offshore wind brings, is to
gradually move away from a
just-on-price auction model to a
design that incorporates non-
price criteria that incentivise
innovation and supply chain
build-up. A healthy auction
mechanism should account for the
total net impacts on society and
not focus on price alone.

The use of minimum local content

requirements (LCRs) as a form of
non-price criteria has substantially
increased in recent years as
governments claim the measure
can help develop domestic
manufacturing capacity for
renewable technologies, create
local jobs and encourage
technology innovation.

Australia, Ghana, Japan, Oman,

Taiwan and the UK have
implemented green LCRs since
2015.19 In Japan, LCRs accounted
for 40 out of the 120 points
19. Overcoming Barriers to International Investment in
Clean Energy (OECD)

76 GWEC.NET
 Focus on offshore wind

available in the project feasibility sustainability and biodiversity; Hollandse Kust West (HKW) tender
evaluation for their first offshore system integration and innovation; placed a high priority on non-price
tender round in 2020. One of the supply chain development and criteria as the tender focused on
requirements was a track record of benefits to communities. how well the wind farm can be
engagement with key stakeholders integrated into the Dutch energy
and impact on local and national Selected criteria should be: system. Site VI of HKW, on the other
employment and manufacturing. l Clear and objective to identify hand, focused on biodiversity.23
the right project without being
In Taiwan, stringent LCRs required discriminatory against any group Ultimately, non-price criteria in
developers to locally procure 26 ‘key of stakeholders. auction design should encourage
development items’ for at least 60% l Transparent and measurable to healthy competition and innovation
of a project’s proposed capacity. avoid introducing additional while enabling rapid scale-up of
Without a clear implementation administrative processes and offshore wind development and the
pathway and sufficient support complex bidding activities. recovery of costs.
mechanisms from governments, l Reasonable and practical to
LCRs can be counterproductive by build on current industry Floating offshore wind
driving up prices while hampering capabilities without further With 80% of the world’s offshore
competition and innovation. Local inflating the cost or delaying wind resource potential in areas
value is best created through project development. with a water depth of more than 60
naturally local jobs, particularly in metres, from 2030 we expect to
transport, construction and O&M In 2022, the German Parliament see a rapid acceleration of floating
– as the servicing of wind farms adopted a new offshore wind law offshore wind.24 Many of the Non-price criteria in auction design
creates jobs over the full project (WindSeeG) establishing two emerging offshore markets, such
lifetime of 20+ years while job types of auctions, one of which as Vietnam and the Philippines, are should encourage innovation while
creation in manufacturing requires a involves negative bidding with no predominantly floating markets. enabling rapid development
market with long-term stability. caps on the amounts developers Mature markets are increasingly
bid. The industry sees this change looking at floating offshore as they
Including non-price criteria should as doing more harm than good, as run out of seabed areas suitable
enable a shift from focusing on uncapped negative bidding means for fixed-bottom offshore projects.
lowest-price projects to rewarding additional costs for electricity
project delivery with highest consumers and the supply chain.22 20. https://www.weforum.org/projects/system-value
21. https://windeurope.org/policy/position-papers/
value.20 The use of these criteria windeurope-position-on-non-price-criteria-in-auctions/
recognises the wider societal Non-price criteria are increasingly 22. https://windeurope.org/newsroom/press-releases/
negative-bidding-in-german-offshore-wind-law-threatens-
value that wind energy brings. accepted in Europe, with all supply-chain/
successful offshore wind auctions in 23. https://windeurope.org/newsroom/press-releases/
europes-latest-offshore-auction-mainly-using-non-price-
Non-price criteria can be prioritised 2022 including non-price criteria as criteria-is-a-success/
if they fall under three categories21: part of the evaluation. Site VII of the 24. Floating Offshore Wind - A Global Opportunity (GWEC)

GWEC | GLOBAL WIND REPORT 2023 77
 Focus on offshore wind

GWEC market intelligence project capacity from 100 MW to

forecasts the floating offshore wind more than 200 MW. Developers
market to reach 16.5 GW by 2030. with existing floating wind sites are
Seabed and subsidy auctions preparing to enter the Round 3.2
planned for 2023 show that the auction scheduled later this year.
sector is preparing for the next
step up in scale. In Europe, more than 60 million GBP
of public and private investment will
be used to develop floating
As it brings down technologies and to place more
costs floating offshore turbines across the UK’s coastlines.
In early 2022, the ScotWind auction
wind will create the alone awarded more than 13 GW of
floating offshore wind sites,
opportunity to open up representing more than half of the
more markets existing offshore wind capacity in
the UK.26 France was to announce
the winner of a 250 MW floating
A number of countries are also wind project in South Brittany at the
joining the race to establish time of writing.
themselves as a global floating
wind supply hub. Floating offshore wind is likely to
rapidly bring down costs, creating
In Asia, Japan’s ‘Program for the opportunity to open up more
Promoting Investment in Japan to markets. The industry can also use
Strengthen Supply Chains’ is an existing maritime and petrochemical
initiative that aims to establish a expertise to transition into floating
manufacturing base for offshore offshore wind. Floating wind will
wind. Korea’s 300 million USD need to move to a larger scale, and
MoU25 with leading wind turbine the first commercial project will be
manufacturer Vestas is a similar key to setting a model that enables
step towards solidifying Korea’s future floating offshore wind project
position as one of the offshore deployment.
supply chain hubs in the region.
Taiwan has updated its floating 25. https://www.koreaherald.com/view.
offshore wind demonstration php?ud=20230119000218
26. https://www.ft.com/content/d894424c-6d29-497d-b728-
project guidelines to increase 2083a5d038e2

78 GWEC.NET
 Focus on offshore wind: GOWA

The Global Offshore Wind Alliance (GOWA)

The government of Denmark, To benefit from the substantial to maturity through, for
IRENA and GWEC founded the potential and opportunities example, the sharing of best
Global Offshore Wind Alliance deriving from offshore wind it is practices and capacity
(GOWA) in September 2022 to pivotal that governments, private building.
drive the uptake of offshore wind sector actors, international l Create an international
through political mobilisation and organisations and other relevant community of practice to drive
the creation of a global community stakeholders work together to action on offshore wind
of practice. GOWA aims to remove the barriers to scaling up deployment as a key to
contribute to achieving a total investment and finance. achieving 1.5C pathways.
global offshore wind capacity of at
least 380 GW by 2030 and 2,000 GOWA is a multi-stakeholder, To support countries as they seek
GW by 2050, with 35 GW being diplomatic and workstream based to develop offshore wind, GOWA
deployed on average each year initiative that has public private will address the major building
through the 2020s and a minimum partnership as its guiding blocks for the sector, such as
of 70 GW annually from 2030. principle. framework conditions, financial
de-risking, system integration and
GOWA envisions offshore wind GOWA will work to: economic benefits.
making a significant contribution l Raise ambition on offshore wind
to the energy transition and the amongst governments and These are all important drivers to
achievement of the sustainable other public and private reduce costs, ensure competitive
development goals through stakeholders. market prices and create project
large-scale renewable power l Support the creation of policy pipelines at country and regional
generation benefiting regions, frameworks and efficient level. GOWA activities will be
nations and critical sectors such offshore wind value chains to based on a demand-driven
as industry and transportation. bring new and existing markets approach.

At the time of writing, GOWA has 14 country members

Australia Denmark Japan Portugal UK

Belgium Germany The Netherlands Spain USA

Colombia Ireland Norway St Lucia

GWEC | GLOBAL WIND REPORT 2023 79
 Focus on offshore wind: OEP

Ocean Energy Pathway (OEP)

The Ocean Energy Pathway (OEP) providing benefits for nature and that lack the regulatory and
is a large-scale, multi-year community. institutional underpinnings to build
programme for contributing to the delivery frameworks. This adds
acceleration of the global energy Market design: how policy drives uncertainty and stretches out wait
transition. OEP aims to ramp up the investment times for developers.
delivery of offshore wind through The development of domestic
collaboration between industry supply chains – a trend New offshore wind markets need a
and civil society that unlocks the increasingly arising from political huge amount of locally appropriate
potential of ocean-based necessity – can also become a and fully aligned policy and
renewable energy in new and limiting factor for the rapid regulation if the sector is to scale
underdeveloped markets. expansion of offshore wind to new up to meet its targets.
countries. Governments and local
The OEP’s fundamental tenet is that industry must work together on Dealing with socio-political and
sustainable scaling up of the sector new policy instruments and ecosystem impacts
will only come from high-quality, strategic support in developing Socio-political challenges
locally appropriate policy and their own supply chains in a way increasingly threaten project
regulation that encourages nature- that does not hinder offshore wind viability. Offshore wind operates in
positive outcomes, delivers for development. a complex, multi-stakeholder
local communities, and enables landscape where the technology is
wider economic development. The wind industry needs often poorly understood,
confidence in policy measures to engendering conflict that causes
A trusted partner for all drive increased investment in additional costs and delays.
stakeholders manufacturing, infrastructure and
Being independent of industry, the talent. Unless the correct industrial Offshore wind competes with
OEP is a trusted partner that works policy choices are made, success existing ocean users – sectors that
with governments, investors, for offshore wind will be severely may feel their prospects are
communities and NGOs to build a constrained. threatened by ocean-energy
competitive and sustainable technologies. The ecosystem
offshore wind sector. Its key aim is Government capacity: why impacts of offshore wind projects
to proactively address the major appropriate regulation matters are also poorly understood,
challenges offshore wind faces Delivering offshore wind is a especially in new markets, leading
through three thematic pillars: complex policy design challenge to ‘green-on-green conflict’ where
market design and supply chains, for developed bureaucracies – and conservation NGOs push back
limited government capacity, and an even greater one for countries against wind projects.

80 GWEC.NET
 Focus on offshore wind: OEP

Accelerating ocean-based The OEP knows that while there The OEP will create a network of
renewable energy requires new are common elements to regional experts that can work with
approaches to deployment, building a successful offshore governments and stakeholders to
including a sustainable approach wind sector, it is essential to build knowledge on offshore wind.
to ocean stewardship, to avoid the work within the unique economic Serving as a catalyst for longer-
industry being caught in the and political contexts of each term systematic change, the OEP
crossfire of wider conversations country. For this reason, it intends to provide experts who
around ocean management. focuses on a number of actions can sit alongside officials in
that are crucial to successful governments, rather than work
In new markets especially, the project delivery. remotely from within large
offshore wind industry needs to consultancies. This will allow us to
establish early partnerships with Expertise and networking support learning inside new
conservation groups and local Because the wind industry has so country markets and accelerate
communities to shape emerging far deployed and invested in the growth in expertise.
regulations and political vast majority of offshore wind
narratives. projects, the OEP occupies a The OEP will also make an
ongoing effort to create and/or
invest in local networks to facilitate
While there are common elements to a successful dialogue and shared working
between ocean and nature NGOs,
offshore wind sector, it is essential to work with the community groups, industry
unique context of each country groups and government
stakeholders.

The OEP’s strategic approach is to

focus on countries with significant
How to accelerate deployment unique position to convene and carbon footprints, at risk of fossil-
In the medium to long term, the support all stakeholders in this fuel lock-in, and with significant
wind industry and investors may area. It aims to leverage its wind resources while also
be able to continue to single- experience and connections to responding pragmatically to
handedly bring offshore wind to support and complement the work country-specific ambitions,
scale in several markets. But given of other organisations including the evolving politics and economics.
the huge role offshore wind must World Bank and the International Priority countries include Vietnam,
play in displacing fossil fuels and Renewable Energy Agency Indonesia, the Philippines,
getting us on track for a 1.5C (IRENA), as well as partner Thailand, India, South Korea,
world, we cannot wait for the governments and the offshore Taiwan, Colombia, Brazil, Japan
market alone to act. sector itself. and South Africa.

GWEC | GLOBAL WIND REPORT 2023 81
 Policy heat map
Renewable energy by 2030
Egypt China
45%
● 42% renewable energy by 2035 with ● 50 GW of planned installations during the
support of Green Corridor Initiative 14th Five-Year Period (2021–2025)
● Installations projected to rise from 1.7 GW ● Projected annual installations of
60 GW Offshore wind by 2030 to 8 GW by 2030 70–80 GW until 2030
● Multi-GW scale projects in early stages of ● Local industry ready to support annual
development installations of approximately 15 GW South Korea
300 GW Offshore wind by 2050 ● Wind energy target increase from 2 to 34%, as
part of a 30% renewables target by 2036
● Projected 34 GW of installed wind energy
by 2036
● New government implementing a 'One Stop
Shop Bill' to fast-track project development

Wind energy by 2030

Canada 5%
UK

EU Offshore wind targets of 10 GW

Kazakhstan 10 GW
Mongolia by 2030 and 30–45GW by 2040

Uzbekistan
South
United States Korea
Japan
30 GW Offshore wind by 2030
Tunisia China
Morocco

Algeria
Egypt
Mexico Saudi India Taiwan
Arabia 15 GW Offshore wind over
2026–2035 (1.5 GW/yr)
Mauritania

Thailand
Senegal Vietnam
Philippines
Costa Rica
Nigeria
Ethiopia
Ghana
17 GW Wind energy by 2030
Colombia
Kenya
Indonesia
India
Brazil Tanzania
100% ● Annual target of 8 GW onshore wind
Peru Brazil ● Cross-party support for wind tender every year between 2023 and
100% energy as a driver of economic Renewable 2030 based on a single-stage
power by
growth and job creation 2030 two-envelope bid system. 28 GW Wind energy by 2030
● ABEEólica expects annual additions ● MNRE published a strategy paper
Renewable
power by in the region of 3 GW for onshore Mozambique outlining a tender trajectory of 37 GW of
2030
wind over the next decade Nambia offshore wind by 2030
● Offshore wind and green hydrogen ● Indian government and industry seizing
Australia
expected as additional drivers for supply chain opportunities
wind energy development
South Africa
Uruguay
Chile
Argentina

Australia
● New national government supportive of onshore
Victoria - offshore and offshore wind development
9 GW wind by 2040 ● Offshore Electricity Infrastructure Regulations
No federal targets
released
● Announced areas for offshore wind in
Gippsland (Victoria)

Strong installed capacity increase, new ambitious targets and/or policy improvement
Adequate targets and policies, but not matched by expected progress

Lack of progress or regression
82 GWEC.NET
MARKETS TO WATCH
 Markets to watch: Brazil

Brazil’s government to bet on hydrogen and

offshore as wind revolution gathers momentum
There are reasons to be optimistic change and the energy transition at energy and renewables –
about the prospects for wind the core of its policies, and some announced plans to consider
energy in Brazil, following years of concrete signs in this direction have developing seven offshore wind
solid industry performance and already been sent. Brazil’s new projects with a total capacity of
positive policy developments. In federal administration is expected 14.5 GW in collaboration with
2022, onshore capacity surpassed to provide incentives for the energy Norway’s Equinor.
24GW1 after another strong year for transition while balancing energy
installations, while excitement over sector priorities with a broad Brazil’s GDP is estimated to grow by
the prospects for offshore wind environmental agenda. 2.8% in 2022, which alongside a
reached unprecedented heights. continued drive towards
This represents a crucial strategic electrification is focusing minds on
Under the Paris Agreement, Brazil opportunity for the country, the need to redouble efforts to
has committed to reducing according to Brazil’s wind energy promote renewable energy
greenhouse gas emissions by 37% and new technologies association developments. Brazil has an
from 2005 levels by 2025 and 50% ABEEólica, provided the right enviable renewable energy matrix,
by 2030. At the COP26 climate regulatory and economic with wind power playing a very
summit in November 2021, Brazil infrastructure is put in place rapidly important role in securing the
also announced a zero illegal to trigger wind industry investment country’s energy supply while
deforestation target by 2030 in Brazil in preference to other offering low prices for consumers
alongside a national hydrogen countries. As expected, under and contributing to decarbonisation.
strategy.2 Brazil’s new political leadership,
state-owned energy giant Official data confirmed that wind
Newly elected President Luiz Inácio Petrobras has already announced energy sits in second place behind
‘Lula’ da Silva said during his that it will fully re-enter the hydro by share of electricity
electoral campaign that his renewables sector, with offshore generation in Brazil, while also
government would place climate wind and green hydrogen being providing an impressive list of
particularly important priorities. socioeconomic benefits. An
1. https://ABEEólica.org.br/wp-content/ Signalling the company’s renewed ABEEólica report analysing the
uploads/2023/01/2023_01_InfoVento29.pdf ambition, on 7 March, new impact of wind energy on the
2. https://www.iea.org/countries/brazil
3. https://www.oecd.org/economy/brazil-economic- Petrobras CEO Jean-Paul Prates – a Brazilian economy found that, for
snapshot/ long-term advocate for wind every Brazilian Real (BRL) invested

84 GWEC.NET
 Markets to watch: Brazil

in wind farms, there is a 2.9 BRL With around 8,000 kilometres of The bill was drafted by former Rio
uplift on GDP.4 coastline blessed with strong Grande do Norte Senator Jean Paul
oceanic winds, Brazil has the Prates – now the newly appointed
The wind energy sector in Brazil is potential to install more than 1,200 CEO of state energy incumbent
consolidating its growth under the GW of offshore wind, according to Petrobras. An offshore wind
free electricity market environment a study by the World Bank.6 This enthusiast, he has raised
and saw a further shift away from dwarfs the already impressive 500 expectations that the company will
regulated auctions towards GW that ABBéolica estimates could review its strategic plan for 2023-27
corporate PPAs in 2022, giving it be installed onshore. to boost investment in renewable
added resilience. energy, and offshore wind
The past year saw a flurry of specifically. A significant shift may
ABEEólica expects annual additions regulatory activity around offshore take time, but with its strong wind
in the region of 3 GW for onshore wind power generation. Since supply chain and well-established
wind over the next decade – but Federal Decree 10,946/2022 – offshore engineering expertise,
hopes this will prove to be a
conservative estimate. It is
particularly optimistic about the With its strong wind supply chain and well-
prospects for a new and very
promising offshore wind energy established offshore engineering expertise, Brazil
market as the regulatory foundations could position itself as a regional leader
for its success are being laid.

Offshore wind:
great expectations setting guidelines on the use of Brazil could position itself as a
Even before the cabinet of President maritime space and the regional leader in an area with
Lula took office on 1 January 2023, exploitation of natural resources several countries poised to invest
the Director of Energy Development – came into force in June 2022, a heavily in offshore wind energy.
at the Ministry of Mines and Energy draft bill on offshore energy
(MME), Marina Rossi, had been regulation (PL 576/2021) started For 2023, ABEEólica plans to
talking up the role of offshore wind making its way through parliament continue to work towards the
in the country’s economic and two ordinances provided establishment of a sound and
development, emphasising the guidelines on the use of maritime consistent regulatory framework for
importance of streamlined rules to areas and the creation of a one- offshore wind, with the support of
facilitate deployment.5 stop-shop for project licensing. GWEC and an industry keen to
invest in the country. Another major
4. https://ABEEólica.org.br/wp-content/uploads/2022/02/Estudo-Braulio_final.pdf
5. https://www.folhape.com.br/economia/ventos-fortes-nas-usinas-eolicas-contra-o-aquecimento-global/250189/
boost for the sector could come from
6. https://www.worldbank.org/en/news/feature/2020/05/27/energia-eolica-offshore-brasil-esmap green hydrogen, which has the

GWEC | GLOBAL WIND REPORT 2023 85
 Strap to watch: Brazil
Markets

potential to propel demand to the of project applications for a total of

levels required by hard-to- more than 170 GW of offshore
decarbonise energy-intensive wind power capacity already filed
industries. Although OECD with the Brazilian Institute of the
projections see slower growth of Environment and Renewable
1.2% in 2023 and 1.4% in 2024 for Natural Resources (IBAMA).
Brazil’s GDP,7 green hydrogen could
become a catalyst for boosting Under its latest Ten-Year Energy
renewable energy demand – and the Expansion Plan (PDE), Brazilian
country’s economic fortunes with it. energy planning agency EPE
foresees renewable energy
ABEEólica supports an industrial representing 48% of the country’s
policy focusing on the synergies energy matrix by 2031. Brazil’s
between green hydrogen and wind offshore wind sector may only be
energy, and expects to engage in its infancy by that date, but it has
positively with the new government the potential to make a major mark
to fast-track its progress. over the following decade.9
Meanwhile, it expects the first
offshore wind tender in 2023 and Having become Latin America’s
was encouraged to see the undisputed wind energy market
technology gain a mention in the leader over the past decade, with
Brazilian Electricity Regulatory more than 50% of the region’s
Agency’s (ANEEL’s) strategic plan installed wind capacity, Brazil
for 2023-24.8 But it insists that the confirmed its position in 2022. The
country needs a breakthrough in challenge for the future is to
detailed offshore wind power consolidate policies and establish
regulation to become an attractive a strong regulatory framework for
environment for investors and offshore wind and green hydrogen
enable the technology to take off in in order to provide the
its waters. appropriate conditions for
industry to invest so that Brazil can
Investors have shown plenty of lead the way to a just energy
appetite for this market, with tens transition in the region.
7. https://www.oecd.org/economy/brazil-economic-snapshot/
8. https://www.gov.br/aneel/pt-br/assuntos/noticias/2022/aprovada-agenda-regulatoria-com-15-temas-estrategicos-para-
o-bienio-2023-2024
9. https://www.epe.gov.br/en/press-room/news/mme-launches-english-version-of-the-ten-year-energy-expansion-plan-
pde-2031

86 GWEC.NET
 Markets to watch: India

India eyes global wind energy supply chain

opportunities as it targets growth in capacity additions
In the midst of global uncertainty 2047. It is also committed to Through its Electricity (Late To support the
caused by the global COVID achieving net zero by 2070. Payment Surcharge and Related development of
pandemic, the Russia-Ukraine war Renewable energy (excluding Matters) Rules, 2022, the power evacuation
and recessionary pressures, India’s large hydro) already represents government aims to curb the issue and transmission
continued political stability has nearly 30% of India’s installed of delayed payments hampering the infrastructure, the
provided strong support for the power generation capacity, at financial health of green power CEA has published
country’s climate commitments. 410 GW, with 10% of this generators. It has also laid down the its transmission
India has prioritised renewable capacity being wind energy. Electricity (Promoting Renewable planning report for
energy, including wind power, in its Energy through Green Energy open the integration of
long-term vision for transformation The combined impact of Access) Rules, 2022 to support the renewable energy,
lifting expectations for a wind economic growth, net-zero goals uptake of green power and the Draft including 58 GW of
sector that experienced a and burgeoning electricity National Repowering Policy for wind energy – of
slowdown in capacity additions in demand will result in a rapid Wind Power Projects, 2022 to tap which 10 GW is
the recent past.1 increase in the share of renewable opportunities for repowering. offshore Tamil Nadu
energy in the power generation and Gujarat – to the Inter-State-
India’s Central Electricity Authority mix. For wind power, India’s target The Ministry of New and Transmission-System (ISTS) by
(CEA) projects Ex-Bus electricity is to achieve a cumulative 140 GW Renewable Energy (MNRE) has 2030. However, the planned
demand to grow 75% by 2031-32 of capacity by 2030. outlined a wind-specific renewable infrastructure may not be sufficient
from 2021-22 levels, and 170% by purchase obligation (RPO) to accommodate MNRE’s target of
2041–42. Demand is projected to How policy reforms will trajectory to 2030, with an annual 8 GW per year.
increase by more than 90% in four accelerate growth target of an 8 GW onshore wind
out of the eight windiest states by In 2022, India awarded 2.252 GW tender every year between 2023 Creating a market for
the start of the next decade. The of standalone and 2.45 GW of and 2030 based on a single-stage offshore wind
World Energy Outlook 2022 hybrid wind capacity through two-envelope bid system. In 2022, the MNRE published a
estimates demand to triple auctions. It commissioned a total of strategy paper outlining a tender
between 2021 and 2050. 1.8 GW of onshore wind power The plan is to harness the massive trajectory of 37 GW of offshore wind
capacity.3 Recent policy reforms wind energy potential of eight by 2030. Together with the Danish
India aspires to be a 5 trillion are likely to further boost demand windy states: Andhra Pradesh, 1. https://eparlib.nic.in/bitstream/123456789/931974/1/17_
USD dollar economy by 2025 for wind power and accelerate Gujarat, Karnataka, Madhya Energy_27.pdf
and aims to grow manufacturing capacity additions over the Pradesh, Maharashtra, Rajasthan, 2. As per IEA’s Advanced Pledges Scenario
3. https://powermin.gov.in/en/content/power-sector-
GDP 15-fold between 2021 and coming years. Tamil Nadu and Telangana. glance-all-India

GWEC | GLOBAL WIND REPORT 2023 GWEC.NET 87
 Strap to watch: India
Markets

Energy Agency, it also published a India’s domestic annual high-impact opportunities for
conceptual plan with a pipeline of 15 manufacturing capacity stands at catalysing wind power generation
offshore wind projects. Additionally, 10-12 GW for wind turbine and manufacturing in the state of
the Center of Excellence on generators. India is also the world’s Tamil Nadu. GWEC also
Offshore Wind and Renewable second-largest market for gearbox presented a similar scenario to
Energy, jointly set up by the Danish manufacturing and the second- the government of Gujarat,
government and the MNRE, largest supplier of blades and alongside recommendations on
published reports on maritime generators in the APAC region. repowering, offshore wind, robust
spatial planning that build on earlier monitoring of utility-scale wind
FOWIND4 and FOWPI5 projects. To further strengthen its leadership farms and transmission projects
in the wind manufacturing sector, to various central government
Creating a market for offshore India must put in place a roadmap agencies.
wind in India demands a strong for a resilient supply chain of raw
partnership between the materials – including rare earth India is in a unique position to
government, development finance metals and non-standard steel – and leverage growing export and
institutions, commercial banks, the for specific jobs such as casting and international service opportunities
offshore wind industry, and local forging. Existing import duty relief in the APAC and European regions.
communities. Developing India as on equipment and components A strategic supply chain impetus is
an attractive offshore wind market such as balsa wood and pultruded pivotal to scaling up India’s wind
further requires the introduction of carbon fibre, which cannot be manufacturing sector.
appropriate standards, such as produced or manufactured in India,
environmental impact assessment must continue. Prime Minister Narendra Modi
(EIA) guidelines, and support for has called for India to become a
energy offtake while ensuring the Micro, small and medium developed economy by 2047.6 In
competitiveness of offshore wind. enterprises (MSMEs) play a pivotal the so-called Amrit Kaal – the
role in the Indian wind 25-year period between the 75th
Seizing supply chain manufacturing sector. Going and 100th anniversaries of India’s
opportunities forward, the government should independence, which was gained
Recent increases in commodity consider targeted production-linked in 1947 – India must leverage all
prices, coupled with the emerging incentives for companies currently channels, including Vision for
impacts of shrinking supply chains engaged in the onshore wind sector, 2047 and the Sovereign Green
in Europe, are pointing to a huge and for those wishing to get involved Bonds (SGrB) framework, to
opportunity for India in the global in offshore wind manufacturing. support its wind sector, thus
wind energy supply chain. achieving the government’s
In 2022, GWEC India convened a vision of green growth and a
4. https://gwec.net/members-area-market-intelligence/fowind/
5. https://www.fowpi.in/
supply chain stakeholder renewable energy-led future for
6. http://timesofindia.indiatimes.com/articleshow/93574111 roundtable, which outlined the country.

88 GWEC.NET
 Markets to watch: Egypt

Egypt uses COP27 springboard

to propel itself into multi-GW scale
Egypt became one of the electricity grid aimed at ensuring for initiating studies related to
pioneering countries for wind renewable energy makes up 42% of green hydrogen projects. It also
energy in Africa and the Middle the country’s energy mix by 2035. signed an MOU with the European
East (ME) when the government’s This features projects such as two Commission in November 2022
New & Renewable Energy 10 GW onshore wind farms planned establishing a long-term strategic
Authority (NREA) built a pilot wind by Masdar and ACWA Power. partnership to: collaborate on
energy project in Hurghada in future EU imports of renewable
1988. Fast forward to today. Egypt The Egyptian government has hydrogen and its derivatives;
is poised to regain its status as a signed countless MOUs with support Egypt’s decarbonisation
leading wind energy market several local and global companies and energy transition activities;
following tremendous ambition
announced on the sidelines of
Projected wind capacity additions in Egypt
COP27, which was hosted in
November 2022 on Egyptian soil
for the first time.
8.3
Following two decades of modest 7.3
wind and renewable energy 6.3
targets, the Egyptian government 5.3
4.3
as COP27 host made a number of
3.4
gigawatt-scale announcements. If 2.9
the projects are constructed, they 1.7 2

will propel the country’s wind 0.9 0.6 0.9 1 1 1 1

0 0.3
energy industry into the upper
echelon of emerging markets
e

e
22

23

24

25

26

27

28

29

30
worldwide.
20

20

20

20

20

20

20

20

20
Cumulative installations (2022-2030)
Key to unlocking this ambition is the
Egyptian government
announcement of the Green
Corridor Initiative, a separate Source: GWEC, 2023

GWEC | GLOBAL WIND REPORT 2023 89
 Markets to watch: Egypt

develop the production, use and Projects in MOUs between industry

export of renewable hydrogen and and the Egyptian government
its derivatives.1
l ACWA Power – 10 GW onshore wind farm
Egypt’s current installed capacity l Masdar, Infinity Power, Hassan Allam Utilities
sits at 1,702 MW following grid Consortium – 10 GW onshore wind farm
connection of Lekela Power’s
252MW West Bakr wind farm. It l  asdar, Infinity Power, Hassan Allam
M
will rise by 1.6 GW once the Utilities Consortium – 2 GW green
AMEA Power-led 500 MW Amunet hydrogen project in the Suez Canal
project, Engie-led 500 MW Gulf of Economic Zone (SCEZ)
Suez 2 and ACWA Power’s 1.1 l AMEA Power – 1 GW green hydrogen
GW wind farm – Africa’s largest project
– are completed.
l Alfanar – 500,000 t/y of green ammonia
Wind installations are estimated and 100,000 t/y of green hydrogen
to achieve 4.3 GW in 2026, if the l Total
Energies – 300,000 t/y green
projects currently in the pipeline ammonia project in the Sokhna region
go online as expected. From
2027, the several projects covered l  gypt Green, a joint venture between
E
by MOUs could add an estimated Scatec, Fertiglobe (an OCI-ADNOC joint
1 GW per year, culminating in venture), Orascom Construction and The
more than 8 GW of installed wind Sovereign Fund of Egypt – 100 MW
capacity by 2030. electrolyser capacity, powered by 260 MW
of solar and wind power
GWEC is currently leading the l  reen Fuel Alliance consortium, led by
G
establishment of Egypt’s first EDF Renewables and Zero Waste – green
wind energy association to hydrogen and ammonia project in the
support the ambitious growth that SCEZ powered by 2 GW of wind and solar
is planned.
l  lobeleq – 3.6 GW of electrolysers
G
powered by up to 9 GW of solar and wind
energy
l  ortescue Future Industries (FFI) – 9.2 GW
F
solar and wind energy to produce green
1. https://energy.ec.europa.eu/memorandum-
hydrogen and ammonia
understanding-strategic-partnership-renewable-
hydrogen-between-european-union-and-arab_en

90 GWEC.NET
MARKET STATUS

All charts in this section: GWEC, 2023

 Market Status 2022

Overview New installations

GW
-17.1%
Globally, 77.6 GW of new wind After a record year in new Onshore
power capacity was connected to installations in 2021, Africa & ME Offshore
power grids in 2022, bringing total connected 453 MW of wind power 95.3 93.6
6.9
installed wind capacity to 906 GW1, in 2022, the lowest since 2013. 21.1
a growth of 9% compared with 2021. 77.6
The world’s top five markets for 8.8
Although new onshore installations new installations in 2022 were 60.8
declined 5% YoY in 2022, it was still China, the US, Brazil, Germany and 6.2
the third highest year in history for Sweden. Altogether, they made up 50.7
4.4
additions. Following a record 2021 71% of global installations last year, 88.4 72.5 68.8
with more than 21 GW grid- collectively 3.7% lower than 2021.
connected, new offshore wind This was primarily due to the 46.3 54.6
capacity commissioned last year world’s two largest markets, China
dropped to 8.8 GW, making 2022 the and the US, losing a combined 5%
second highest year. market share compared with the
previous year – the second
Asia-Pacific lost 3% in market share consecutive year that both
2018 2019 2020 2021 2022
last year compared with 2021, but the countries have lost market share.
region remains the world’s largest
wind market, with China contributing In terms of cumulative installations,
87% of its 2022 additions. the top five markets as of the end of New wind power capacity in 2022 New wind power capacity in 2022 and share
2022 remained unchanged. China, by region (%) of top 10 markets (%)
As the second largest market, the US, Germany, India and Spain
Europe saw record onshore wind together accounted for 72% of the 1% APAC China
world’s total installed wind power Europe US
installations in 2022, which helped North America Brazil
capacity, as in 2021. 7%
boost the region’s market share LATAM Germany
Africa & ME 16% Sweden
from 19% in 2021 to 25%. 2% Finland
GWEC reports installed and fully commissioned capacity 12%
additions and total installations. According to GWEC 2% France
North America retained third place Global Supply Side data, globally 90.6 GW of new wind 2% India
power was mechanically installed in 2022, but only 77.6 UK
but lost 2% in market share due to 77.6 GW 56% 3% Spain
GW was commissioned primarily because 13 GW of new
3% 77.6 GW
slower growth in the US. Driven by a installations in China and Vietnam were not grid- Other
connected. Cumulatively, 940 GW of wind power was 25% 3%
record year for installations in Brazil, mechanically installed worldwide by the end 2022, but 4%
Latin America (LATAM) increased only 906 GW was commissioned due to grid connection
5% 49%
delays. All charts in the Market Status and Market Outlook
its market share in 2022 by 1%. sections are based on GWEC data. 11%

92 GWEC.NET
 Market Status 2022

The status of onshore wind in 2022 New onshore wind power capacity in 2022 and
market share by country (%)

New grid-connected onshore wind installations in 2022. The 50.6 GW Despite finishing the year with a Top 5*
capacity in 2022 amounted to 68.8 of new onshore wind capacity strong final quarter, the US wind Other
GW, bringing cumulative global approved under the ‘grid parity’ industry commissioned only 8.6
onshore capacity to 842 GW, with scheme in 2021 shows that the GW of onshore wind capacity in 28%
YoY growth of 8.8%. country is on track to reach its 2022, the slowest year since 2018,
ambitious renewable energy according to American Clean
Thanks to record installations in targets included in the 14th Power (ACP). Due to supply chain
68.8 GW 72%
Sweden, Finland and Poland, and Five-Year Plan (2021-2025). The constraints and grid
recovering installations in Chinese Wind Energy Association interconnection issues, more than
Germany, Europe performed well (CWEA) reported that 44.7 GW of 10 GW of onshore wind capacity
in a volatile 2022, adding a record onshore wind capacity was has had delays, slowing the rate of
16.7 GW of onshore wind capacity. installed in 2022, but the latest installations. GWEC expects the US
statistics released by the National market to accelerate sharply now
Global additions in 2022 were 5% Energy Administration (NEA) show that the IRA is in place and is fully *China, US, Brazil, Sweden and Finland
lower than in the previous year. that only 32.6 GW of new onshore understood by investors.
The slowdown in LATAM, Africa & wind capacity was grid-connected
ME is partly responsible for the last year. In addition to China and the US, the New onshore wind power capacity in 2022 by
decline, but the primary reason is other onshore wind markets in the market support mechanism (%)
the slowdown of onshore In the US, our Q1 2022 Outlook top five in 2022 were Brazil (4.1
installations in the US. forecast relatively stable onshore GW), Sweden (2.4 GW) and
wind growth for 2022. The Internal Finland (2.4 GW). China (grid parity)
China’s onshore wind installations Revenue Service (IRS) in June 2021 2.5% Auction/tenders
3.2% US (PTC)
plunged in 2021 when the world’s provided a further one-year ‘Grid parity’, auction/tenders and FiT
largest onshore wind market extension for projects that started the PTC remained the top three 0.6% Green certificate
entered the era of ‘grid parity’, construction in 2016 or 2017, market support mechanisms Other
meaning that electricity generated allowing project developers to behind onshore wind capacity 8.6
by onshore wind would be qualify for the full Production Tax added in 2022. Collectively, they
remunerated with the same Credit (PTC) rate if their projects account for a combined 91% 68.8 GW
32.6%
regulated price as coal power in can meet a commercial operation market share, the same as the 21.3%
every province. GWEC Market date (COD) of end-2022. However, previous year.
Intelligence forecast, in its Q1 2022 many projects were delayed by
Outlook, that Chinese onshore developers as they awaited full Excluding China, 13.7 GW of
installations would bounce back, clarity on the rules of the Inflation onshore wind capacity was
reaching 46 GW of new Reduction Act (IRA). awarded worldwide last year

GWEC | GLOBAL WIND REPORT 2023 93
 Market Status 2022

through wind-specific, technology-

neutral, renewable and hybrid
auctions, which is 30% lower than
in 2021. Even though Europe
accounted for more than half of this
volume, it still saw awarded
onshore wind capacity drop by
29% compared with 2021.
Triggered by Russia’s invasion of
Ukraine, governments in the EU
have set ambitious renewable
energy targets to ensure security
of supply. However, onshore wind
tenders launched in 2022 were
undersubscribed in several key
European onshore wind markets
including Germany, France, Spain
and Italy. Longstanding permitting
issues and increased project risk
– associated with global inflation
and supply chain disruption –
combined with unhelpful market
interventions by EU governments
to undermine investors’
confidence.

China approved 11 GW of onshore

wind capacity under the ‘grid
parity’ mechanism in 2022, only
one-fifth of the volume reported
for 2021. As of January 2023,
however, provincial governments
had announced more than 50 GW
of onshore wind capacity under
the same support mechanism,
putting China on track to reach its
‘30-60’ targets.

94 GWEC.NET
 Market Status 2022

The status of offshore wind in 2022 New offshore installations (MW)

8.8 GW of new offshore wind was Europe more than three l I taly also commissioned its first
fed into the grid last year, bringing decades to achieve. commercial offshore wind
total global offshore wind capacity project last year. The 30 MW
to 64.3 GW by the end of 2022. l With 2.5 GW offshore wind Beleolico offshore wind farm, 21,106
The new additions are 58% lower capacity across six countries which features 10 MySE3.0-135
than the bumper year of 2021 but connected to the grid in 2022, wind turbines from Mingyang, CAGR +19.2% 2,317
still make 2022 the second highest Europe accounted for the not only represents the first
year in offshore wind history. majority of the remaining new installation of Chinese wind 1,001

capacity, as in the previous year. turbines in European waters, but

l  hina continued to lead global
C also the first offshore wind 1,764
offshore wind development, l T he UK further consolidated its project commissioned in the
although new installations in leading position in the Mediterranean Sea.
2022 were 70% lower than in European offshore wind market
2021 – a record year driven by in 2022. In addition to l I n Norway, the 94.6 MW Hywind 1,111
1,312
the end of the feed-in tariff completing the commissioning Tampen floating wind project, 1,715
752 342
(FiT). Starting from 1 January of the remaining wind turbines featuring 11 units of SG-8.6 8,771
752
2022, China’s offshore wind (924 MW) at the 1.4 GW MW-167 wind turbines from 237
1,179
market has also entered the era Hornsea Project 2, which is now Siemens Gamesa and a concrete 6,243
6,852
of ‘grid parity’ with the end of the world’s biggest operational SPAR-type floating foundation, 1,253 483 939
national FiTs. Although financial offshore wind farm, the UK has was scheduled to be completed 4,351 1,764 16,900
2,216
support at the provincial level is grid-connected 27 wind by the end of 2022, but due to
1,111
still available in Guangdong, turbines (255 MW) at the 1.1 supply chain issues only seven 1,312 5,052
752
Jiangsu and Shandong, the GW Seagreen Project. wind turbines (60.2 MW) have 969
3,845
380
incentive is much lower than the come into operation. 2,493
1,655
FiT previously offered by the l  aving fully commissioned its
H 35 123 60
12
888 1,259

central government. first commercial offshore wind l  ltogether, a total of 66.4 MW of

A 2018 2019 2020 2021 2022
Commissioning more than 5 project, the 480 MW Saint- floating wind capacity was US Other Asia China
GW of new offshore wind in Nazaire wind farm, last commissioned in 2022, including Other Europe Germany UK
2022 demonstrates the November, France became 60.2 MW at Norway’s Hywind
resilience of China’s offshore Europe’s second largest offshore Tampen project and one 6.2 MW
wind industry. By the end of wind market in new additions in floating wind turbine supplied The offshore wind market has grown from 4.4 GW in 2018 to 8.8 GW in 2022,
bringing its market share in global new installations from 9% to 11%. This is 11
2022, cumulative offshore wind 2022, followed by the by Chinese CSSC Haizhuang, percentage points lower than 2021, primarily due to new installations slowing
installations in China exceeded Netherlands (369 MW) and installed in China on a floater down in China after an incentive-driven installation rush. GWEC Market
Intelligence expects the global offshore wind market to continue to grow at an
30 GW, a milestone that took Germany (342 MW). prototype called ‘Fuyao’. accelerated pace (for details, see Market Outlook).

GWEC | GLOBAL WIND REPORT 2023 95
 Market Status 2022

l  utside of China and Europe,

O cap to negotiate PPAs with was in Europe and 3 GW in
two other markets reported investors for their renewable Taiwan. In Europe, the UK
new offshore wind installations energy projects was missing awarded the most offshore
in 2022: Taiwan (1,175 MW) and until January 2023. wind capacity (7 GW) through
Japan (84 MW). In February the Contracts for Difference
2022, the Ministry of Economic l The US is the only market with (CfD) Allocation Round 4,
Affairs’ Bureau of Energy offshore wind in operation in the followed by the Netherlands
predicted a total of 2,016 MW Americas, but no offshore (1.5 GW) and Germany (980
offshore wind capacity would turbine or project was MW). The two ‘subsidy-free’
be added in Taiwan in 2022. commissioned in 2022, as in the tenders (760 MW each) that
However, only 145 offshore previous year. were launched and awarded in
wind turbines across four
projects were connected last
year. This is due in part to the After overtaking the UK as the world’s top offshore
COVID-19 pandemic and
typhoon-related disruptions. In wind market in 2021, China further consolidated its
Japan, the 140 MW Akita market share in 2022
Noshiro Port wind farm was
scheduled to achieve full
commissioning by the end of
2022. All the turbines were l I n terms of cumulative the Netherlands were Europe’s
installed by early December, installations, China overtook the latest offshore wind auctions
but only the 84 MW Noshiro UK as the top market in 2021, using non-price criteria to
Port offshore wind farm was and further consolidated its select winners.
commissioned in 2022. market share in 2022. Germany,
the Netherlands and Denmark l The US awarded no offshore
l  o intertidal offshore wind
N are the other three markets that wind project capacity last year,
project in Vietnam reached make up the top five. but collectively more than 13 GW
commercial operation last year, of capacity was allocated
although more than 300 MW of l  xcluding China, where 19.7
E through the New York Bight,
intertidal project capacity GW of offshore wind projects Carolina Long Bay and California
missed their COD deadline in were approved under the lease sales. The California
2021 and more turbines were ‘grid-parity’ mechanism, a total auction was the first offshore
installed at a few intertidal of 12.5 GW of offshore wind wind lease sale on the US Pacific
projects in 2022. This is because capacity was awarded Coast and the first to support
the ceiling price used by worldwide last year through commercial-scale floating wind
Vietnam Electricity (EVN) as the auctioning, of which 9.5 GW development.

96 GWEC.NET
 Market Status 2022

New installations decline in all regions, The annual wind market (onshore
and offshore combined) declined
in all regions except Europe in
except Europe 2022, with a YoY fall of 17.1%.

l Onshore wind: despite a

challenging economic environment
Changes in new onshore and offshore installations, 2021–2022 (GW) and vexing supply chain issues,
Europe had a record year in 2022
with YoY growth of 18.2%, primarily
1.9 driven by record installations in
93.6 -4.1
Sweden, Finland and Poland, as
2.6 -2.5 well as recovering installations in
-12.3 Germany. Compared with 2021,
-1.4 0.4
-0.6 however, new onshore wind
77.6 capacity added in North America,
Africa & ME and LATAM last year
fell by 28% (3.8 GW), 75% (1.4
GW) and 10% (0.6 GW)
respectively, while new additions in
APAC remained constant. The
decline in North America, Africa &
ME and LATAM is mainly due to
lower onshore installations the US,
no turbines were grid connected in
Africa’s two largest wind markets,
South Africa and Egypt, and there
was a sharp drop in new
installations in Argentina and
Mexico.
l Offshore wind: new offshore wind
installations decreased by 58%
(12.3 GW) compared with 2021,
Total 2021 China US LATAM Africa, ME Europe India Other Offshore 2022
mainly due to annual growth
onshore onshore onshore onshore onshore onshore onshore
returning to normal after China’s
policy-driven installation rush
came to an end.

GWEC | GLOBAL WIND REPORT 2023 97
 Market Status 2022

Actuals 2022 vs GWEC forecast

Actuals for 2022 vs GWEC forecast
China onshore
Chinese onshore wind installations were expected to bounce back in 2022 to reach 46 GW, as more than 50.6 GW of
onshore wind capacity was approved under the ‘grid parity’ scheme in 2021, demonstrating that the country is on track to
reach its ambitious renewable energy targets. According to China’s NEA, 32.6 GW of onshore capacity was grid-connected
last year, but CWEA statistics show that 44.7 GW of onshore wind capacity was mechanically installed in 2022. Actuals 2022
USA onshore Forecast Q3 2022
The rationale behind our forecast for the US is that the IRS in June 2021 provided a further one-year extension for projects that
started construction in 2016 or 2017, allowing project developers to qualify for the full PTC rate if their projects can reach their

00
46 79
COD by end of 2022. Although only 4.1 GW of onshore wind had been commissioned by the third quarter of 2022, a big

,0
,5
32
installation push was still expected for Q4 2022. ACP statistics show that Q4 was the strongest quarter of the year, but due to
supply chain constraints and grid interconnections, quarterly installations were still down 35% compared with 2021.
India onshore
India commissioned 1.58 GW of wind power in the first three quarters of 2022, continuing the trend of recovering installation
rates. However, total additions in 2022 were still lower than our Q3 2022 projection, which is primarily driven by the
cancellation of projects rendered unviable by high inflation and delays on account of grid unavailability and timeline
extensions in their Scheduled Commissioning Date (SCD).
Germany onshore
To reduce reliance on fossil fuels imported from Russia, Germany’s new federal government increased its 2030 renewables
target while introducing a new ‘Onshore Wind Law’ (WindLandG) in July 2022 to accelerate installations as part of its ‘Easter
Package’. Actual onshore wind installations in 2022 were slightly lower than expected, but still made Germany Europe’s
largest wind market for additions in 2022.
Brazil onshore
Wind power development in Brazil has demonstrated the industry’s resilience over the past three years, especially during the
COVID-19 pandemic and the country’s political turbulence. 2022 was a record year, with more than 4 GW of onshore wind
installations. The strong growth is linked to projects being developed through both the regulated scheme of public auctions
and the free market of private PPAs.
Vietnam onshore
Since more than 1 GW of registered onshore wind projects missed their COD deadline in 2021, we expected some of them to
start commercial operation in 2022, provided offtake agreements could be made. However, no onshore wind projects
achieved commercial operation last year due to the ceiling price used by EVN as the cap to negotiate PPAs with investors for
renewable projects not being in place until January 2023.
UK offshore

0
In 2022, GWEC Market Intelligence expected the remaining offshore turbines (totalling 924 MW) at the 1.4 GW Hornsea

61

50
8,

9,
Project 2 to reach commercial operation, and half of the turbines at the 1,075 MW Seagreen Project (114 wind turbines) in
Scotland to come into operation. Although all the turbines were fully commissioned at the Hornsea Project 2, only 27 wind
turbines (255 MW) were grid-connected at the Scottish project.

0
00
2
5

05
06

6,
Germany offshore

90

5,
4,
3

3,
0
40
The 342 MW Kaskasi offshore wind farm reached commercial operation in the German North Sea in 2022, in line with our

70
7
40

2,

2
84

1, 9
2,
projection. New offshore wind installations have been low since 2020, primarily due to unfavourable offshore wind policies

46
17
2,
1,

1,
and a small short-term offshore wind project pipeline.

2
2
0

34
34
0
30
China offshore
After a record year in 2021, with nearly 17 GW of offshore wind grid-connected, new installations were predicted to drop China US India Germany Brazil Vietnam UK Germany China
dramatically following the introduction of ‘grid parity’ in the Chinese offshore wind market from 2022. GWEC Market offshore offshore offshore offshore
Intelligence predicted 6 GW of offshore wind to be commissioned in 2022, which was primarily based on the fact that more
than 7 GW of offshore wind projects had started construction by Q1 2022.

98 GWEC.NET
 Market Status 2022

New installations onshore (%) New installations offshore (%)

Rest of world 6%
Rest of world 14% China 47% Netherlands 4% China 58%
Poland 2% France 5%
France 2%
Spain 2%
India 3% Taiwan 13%
Germany 3% 68.8 GW 8.8 GW
Finland 4%

Sweden 4%
UK 13%
Brazil 6%

US 13%

Total installations onshore (%) Total installations offshore (%)

Rest of world 17%

Rest of world 9% China 49%
China 40%
Denmark 4%
Sweden 2%
Netherlands 4%
UK 2%
Canada 2%
France 2% Germany 13%
841.9 GW 64.3 GW
Brazil 3%
Spain 4%

India 5%
Germany 7% UK 22%
US 17%
Detailed data sheet available in GWEC’s member-only area. For definition of region see Appendix - Methodology and Terminology

GWEC | GLOBAL WIND REPORT 2023 99
 Market Status 2022

Historic development of new installations (GW)

CAGR 95.3
+3% 93.6
6.9
21.1

Onshore
Offshore CAGR
+10% 77.6
8.8

63.8
CAGR 3.4 60.8
+22% 6.2
54.9
2.2
53.5
51.7 4.5 50.7
1.5 4.4
45.0
1.2
38.5 39.1 40.6
0.9 0.9 36.0
0.6
1.6
26.9
0.4
20.3
0.3
14.7
11.5 0.1
8.1 8.2 0.1
6.5 7.3 0.1
0.2 0.3
0.1

6.4 7.1 7.9 8.1 11.4 14.6 20.0 26.5 37.9 38.2 39.8 43.9 34.5 50.2 60.4 52.7 49.0 46.3 54.6 88.4 72.5 68.8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Share of offshore ~1% ~3% 5-23% 11%

100 GWEC.NET
 Market Status 2022

Historic development of total installations (GW)

906
64
830
56

CAGR
+11% 745
36

650
29
591
Onshore 23
Offshore 540
19
CAGR 488
+17% 14
433
12

CAGR
370
+26% 8
319
7
283
238 5
198 4
3
159
94 121 2
1
74 1
48 59
24 31 39 -1
-1 -1
0 -1
0

31 39 47 58 73 93 119 157 195 234 278 312 362 421 473 522 568 621 709 774 842
24
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Share of offshore ~1% ~2% 3-7% 7%

GWEC adjusted 2021 total installations compared with the Global Wind Report 2022 based on the latest available statistics. For details see Appendix – Methodology and Terminology

GWEC | GLOBAL WIND REPORT 2023 101
 Market Status 2022

Historic development of new and total grid-connected installations

MW, onshore New installations 2021 Total installations 2021 New installations 2022 Total installations 2022
Total onshore 72499 773818 68816 841898
Americas 19243 189582 14829 204134
USA 12747 135848 8612 144184
Canada 677 14255 1006 15261
Brazil 3830 21567 4065 25632
Mexico 473 7159 158 7317
Argentina 669 3291 18 3309
Chile 615 3444 824 4268
Other Americas 232 4018 146 4165
Africa, Middle East 1809 9359 349 9708
Egypt 237 1702 0 1702
Kenya 102 435 0 435
South Africa 668 3442 0 3442
Morocco 197 1512 276 1788
Saudi Arabia 416 422 0 422
Other Africa 189 1846 73 1919
Asia-Pacific 37352 365887 36970 402852
China 30670 301419 32579 333998
India 1459 40083 1847 41930
Australia 1746 9125 1412 10537
Pakistan 229 1516 301 1817
Japan 211 4523 149 4668
South Korea 64 1562 96 1658
Vietnam 2717 3102 0 3102
Philippines 0 443 0 443
Kazakhstan 88 337 418 755
Other APAC 168 3776 169 3945
Europe 14095 208991 16667 225204
Germany 1925 56814 2403 58951
France 1192 19079 1590 20653
Sweden 2104 11952 2441 14393
United Kingdom 328 14074 502 14575
Spain 750 28134 1659 29793
Finland 671 3186 2430 5607
Netherlands 952 5370 933 6223
Turkey 1400 11102 867 11969
Other Europe 4773 59280 3842 63040

MW, offshore New installations 2021 Total installations 2021 New installations 2022 Total installations 2022
Total offshore 21106 55549 8771 64320
Americas 0 42 0 42
USA 0 42 0 42
Asia-Pacific 17788 27695 6311 34006
China 16900 26390 5052 31442
Japan 0 52 84 136
South Korea 0 142 0 142
Vietnam 779 874 0 874
Taiwan 109 237 1175 1412
Europe 3317 27812 2460 30272
United Kingdom 2317 12739 1179 13918
Germany 0 7713 342 8055
France 0 2 480 482
Netherlands 392 2460 369 2829
Denmark 605 2308 0 2308
Belgium 0 2262 0 2262
Other Europe 4 328 90 418

GWEC adjusted 2021 new and total installations compared with the Global Wind Report 2022 based on the latest available statistics.

102 GWEC.NET
MARKET OUTLOOK

All charts in this section: GWEC, 2023

 Market Outlook 2023–2027

Global wind energy market New installations outlook 2023–2027 (GW)

expected to grow by 15% Onshore

Offshore
150
157

on average per year

CAGR 15%
135 36
125 32
115 26
18
GWEC Market Intelligence ten years, primarily driven 18
expects that new wind power by the Inflation Reduction
installations will exceed 100 GW Act (IRA). 78
in 2023 and that 680 GW of new 9
capacity will be added in the l  hina’s commitment to further
C
next five years under current expanding the role of 69 97 106 109 117 122
policies. This equals more than renewables in its energy mix,
136 GW of new installations per aiming for renewable energy to
year until 2027. contribute more than 80% of
total new electricity
The compound annual growth rate consumption by the end of the
2022 2023e 2024e 2025e 2026e 2027e
(CAGR) for the next five years is 14th Five-Year Period (2021–
15%. 2025).
GWEC’s Market Outlook represents the industry perspective for expected installations of new capacity for the next five
years. The outlook is based on input from regional wind associations, government targets, tender results, announced
 chieving double-digit growth is a
A l  overnments fully waking up to
G auction plans, available project pipeline, and input from industry experts and GWEC members. An update will be
very positive development. There the opportunities that offshore released in Q3 2023. A detailed data sheet is available in the member-only area of the GWEC Intelligence website.

are five pillars that will underpin wind can provide, making
this level of success in the next five offshore wind truly global and primarily on three market auctions (Europe, LATAM, Africa
years: increasing ambition in mature support mechanisms: & ME and South East Asia).
and developing markets.
l  urope’s renewed urgency to
E l ‘Grid parity’ (China) In addition to addressing
replace fossil fuels with l  trong growth in large emerging
S challenges such as permitting
renewables to achieve energy markets both onshore and l Tax credit (PTC, ITC and and market design, governments
security in the aftermath of the offshore from the middle of this technology-neutral tax credits will have to implement new policy
Russian invasion of Ukraine. decade. in the US) solutions to ensure that the global
supply chain can meet increasing
l  strong uplift for renewable
A Global wind power growth in l Wind-specific, technology- demand from both established
energy in the US over the next 2023–2027 will continue to rely neutral, renewable and hybrid and emerging markets.

104 GWEC.NET
 Market Outlook 2023–2027

Global onshore outlook Global offshore outlook

The CAGR for onshore wind in After a YoY fall of 58% in 2022,
the next five years is 12%. annual offshore wind installations
Expected average annual are expected to bounce back
installations are 110 GW, with a reaching 18 GW in 2023. The
total of 550 GW likely to be built CAGR for offshore wind in the next
in 2023–2027. five years is 32%. With such a
promising growth rate, new
Growth in China, Europe and the installations are likely to double by
US will be the backbone of global 2027 from 2023 levels.
onshore wind development in the
next five years. Altogether they China and Europe will be the two
are expected to make up more key contributors to near-term

Growth in China, Europe and the US will be the

backbone of global onshore wind development in
the next five years

than 80% of total additional growth, making up more than 80%

capacity in 2023–2027. GWEC of new additions in 2023 and 2024.
Market Intelligence believes that The US and emerging markets in
China will be the engine of APAC will start gaining sizeable
near-term growth, accounting for market share from 2025 with 7-8
62% of new installations in 2023. GW of new offshore wind
But installations will accelerate in expected to be added every year
Europe, the US and emerging over the rest of the forecast
markets in Southeast Asia and period.
Africa & ME from 2025. Global
onshore wind markets will I n total, 130 GW of offshore wind is
become more diversified by 2027 expected to be added worldwide
with half of the annual growth in 2023–2027, with expected
coming from markets outside of average annual installations of
China. nearly 26 GW.

GWEC | GLOBAL WIND REPORT 2023 105
 Market Outlook 2023–2027

Onshore wind in APAC, Europe and the US is expected to

accelerate while offshore wind keeps going strong
New onshore and offshore installations outlook by region (MW, %) Offshore wind offshore wind market after China and
The global offshore market is the UK in terms of new additions. This
expected to grow from 8.8 GW in projection is based on the
2022 to 35.5 GW in 2027, bringing its assumption that the supply chain will
77,587 115,425 124,451 134,710 149,661 156,983 share of total new global installations be established in time to address the
from today’s 11% to 23% by 2027. growth from the East Coast of the US.
11% 16% 15% 19% In Asia, China will remain the China
4% 22% 23%
largest contributor with 64 GW to Strict COVID-19 restrictions and the
7% 0% 5% 7%
2% 5% 1% 4% 2% 6%
be added in the next five years, impact of a sudden ‘reopening’ of
4% 3% 7% 7%
8% 1% 8% 1%
12% followed by Taiwan (6.9 GW), South the country made 2022 a difficult
1% 3% 3% 3% 3% Korea (2.3 GW), Vietnam (2.2 GW, year. Achieving grid connection of
8% 1% 1%
13% 9% 10% primarily intertidal projects) and 33 GW (mechanical installation of 45
21% 14% Japan (0.9 GW). GW) of onshore wind capacity has
14%
14% 15% demonstrated the resilience of the
In Europe, more than 37 GW of Chinese wind industry. In early 2023,
offshore wind capacity is expected the NEA predicted that generation
to be built in 2023–2027, of which from wind and solar power will
42% 52% 48% 45% 40% 38% 41% is likely to be installed in the double by 2025 from 2020 levels. To
UK - primarily driven by the reach the target, 250–300 GW of
commissioning of CfD Allocation wind power capacity needs to be
Round 3 and 4 projects, 16% in added between 2021 and 2025.
Germany, 9% in the Netherlands, Since more than 80 GW of wind
2022 2023e 2024e 2025e 2026e 2027e 8% in Poland, 8% in France and 6% turbine orders have already been
in Denmark. awarded in 2022 and the Chinese
Offshore Pacific Latin America Europe government committed to non-fossil
Africa, ME North America Asia ex China China With the first utility-scale offshore fuels achieving 25% of the country’s
wind project expected to be partially primary energy mix by 2030,
connected in 2023, 15 GW of GWEC Market Intelligence has
GWEC’s Market Outlook represents the industry perspective for expected installations of new capacity for the next five years. The outlook is offshore wind capacity is predicted further upgraded its onshore wind
based on input from regional wind associations, government targets, available project information as well as input from industry experts and
GWEC members. An update will be released in Q3 2023. A detailed data sheet is available in the member-only area of the GWEC to be commissioned in the US in the installations forecast and now
Intelligence website. next five years, making it the largest predicts 300 GW of new capacity to

106 GWEC.NET
 Market Outlook 2023–2027

be added to the grid in China in the Thailand and Sri Lanka) and Central
next five years. Asia (primarily Kazakhstan and
Uzbekistan) are likely to make up
Asia excl. China 22% and 12%, respectively, of the
Excluding China, India is the largest new capacity expected for this
wind market in Asia. We expect the region in 2023–2027.
country’s onshore wind market to
continue to recover, with new Pacific
additions peaking in 2025–2026 No projects were commissioned in
given the expiry of the 100% New Zealand in 2022, although two
interstate transmission charge waiver projects totalling 260 MW were
(ISTS) in June 2025. Towards 2030, under construction last year. With
annual growth has the potential to construction work ongoing at
reach 5-6 GW under the new another two projects expected to be
8 GW/year tender trajectory. online by December, 2023 will be a
However, the tapering down from record year for this market. However,
50% to zero of ISTS charge waive- growth in New Zealand is likely to
offs between 2026 and 2028 is likely stop if no project is added to the
to limit installations to 4.5–5.0 GW. In pipeline in the next two years. In
total, 21 GW of onshore wind Australia, the total capacity of
capacity is likely to be added in India shovel-ready onshore wind projects
in 2023–2027, accounting for half of at the start of 2023 was close to 4
the predicted additions for the GW. Although the installation rate in
region. No onshore wind projects 2023 is predicted to be the lowest
achieved commercial operation in since 2019 – based on announced
Vietnam last year, but we expect new project CODs – annual installations
capacity to be commissioned in will surge again from 2024 and more
2023 and 2024 now that a ceiling than 3 GW of onshore wind is
price used by EVN to negotiate PPAs expected to be connected before
with investors for their renewable 2026. Growth momentum is likely to
projects has been set by the Ministry continue beyond 2025 because:
of Industry and Trade. Elsewhere in
the region, growth is expected to l  ore states have rolled out
M
come from Japan, Pakistan and renewable tenders and renewable
emerging markets of southeast Asia, energy zones as more renewables
as well as in Central Asia. Southeast and storage are urgently needed
Asia (mainly the Philippines, Laos, to replace coal plants due to retire.

GWEC | GLOBAL WIND REPORT 2023 107
 Market Outlook 2023–2027

l The corporate PPA market 2030 renewable targets for non-EU

remains strong, driven by countries, record onshore wind
sustainability goals. installations are expected for Europe
l There are commitments from every year over the rest of the
mining and heavy industries on forecast period.
captive renewables and green
hydrogen. North America
l Several transmission projects, such The US onshore wind market has
as Project EnergyConnect, VNI been a tax credit-driven market.
West and Marinus Link, are either With the IRA signed into law by the
approved or under construction. Biden administration last August, the
situation is likely to continue for the
Europe next ten years. The IRA extended
Our forecast for the next five years is and increased investment and
in line with WindEurope’s Central production tax credits (ITC and
Scenario1, which is based on the PTC) through 2024 for wind energy
latest developments in EU regulation, projects that begin construction
national policies, signed PPAs, before 1 January 2025. In 2025, the
project development timelines and tax credits for wind will be replaced
the ability of wind to secure further with technology-neutral credits for
capacity in upcoming auctions and low-carbon electricity generation,
tenders. After a record year of which in turn are slated for phaseout
installations, onshore wind additions in 2032, or when greenhouse gas
in Europe in 2023 are likely to fall by emissions from the US power sector
13% compared with last year, which fall to 25% of 2022 levels, whichever
is due to an expected slowdown in is later2. Additionally, under the IRA,
the Nordic countries. Local projects can receive stackable
opposition and laws enabling local bonus credits if certain local
communities to block any project component requirements are met.
are having a particularly negative GWEC expects the US onshore
effect in Norway. With strong growth wind market to accelerate now that
coming back in established guidance from ISR on the IRA
European markets such as Germany, implementation is in place. With the
Spain, the UK, France, Italy and tax benefits and incentives being
Turkey, the European onshore fully understood by investors and
market will take off again from 2024. suppliers, new investment plans
Driven by the REPowerEU target and have already been announced
1. https://windeurope.org/intelligence-platform/product/wind-energy-in-europe-2022-statistics-and-the-outlook-for-2023-2027/
2. https://www.energy.gov/eere/wind/articles/us-wind-industry-federal-incentives-funding-and-partnership-opportunities-fact

108
 Market Outlook 2023–2027

across the country. In total, 60 GW of region in the next five years with
onshore wind capacity is expected Brazil, Chile and Colombia
to be added in the next five years in contributing 78% of the additions.
North America, of which 92% will be
built in the US and the rest in Africa/Middle East
Canada. Growth momentum is After a record year in new
unlikely to stop in this region beyond installations in 2021, Africa & ME
2027, as more capacity is predicted connected 453 MW of wind power
to be added in the US in 2028–2032, last year, the lowest since 2013.
primarily driven by technology- Compared with GWEC Market
neutral tax credits. Intelligence’s Q3 2022 Outlook, new
onshore wind additions for this
Latin America region in the next five years have
Growth in LATAM remained stable been downgraded by 16% (2.6
in 2022 with new installations GW). This is the result of most of the
reaching 5.2 GW, the second highest awarded onshore wind projects
in history. The growth was primarily from the REIPPP Bid Window 5
driven by Brazil, which had a record auction being delayed in South
year and made up nearly 80% of the Africa and no wind capacity being
region’s additional capacity. Brazil awarded from the REIPPP Bid
performed well in the past two years: Window 6 auction, launched in
its strong growth was linked to 2022, due to the unavailability of
projects being developed through grid capacity in the provinces of
both the regulated scheme of public Eastern Cape and Western Cape.
auctions and the free market of With GW-level projects expected to
private PPAs. Despite pipeline be built in North Africa and Saudi
growth having been interrupted by Arabia – and projects from the
an unhelpful policy environment in REIPPP Bid Window 5 auction
Mexico and economic instability in coming online – annual growth is
Argentina, new LATAM installations likely to bounce back in this region
of 5 GW are likely in 2023–2027, reaching 5 GW in 2026–2027. In
primarily driven by ongoing growth total, 17 GW of new capacity is
in Brazil and Chile, as well as the expected to be added in the next
completion of long-awaited projects five years (2023–2027), of which 5.3
in Colombia. GWEC Market GW will come from South Africa, 3.6
Intelligence expects 26.5 GW of GW from Egypt, 2.4 GW from Saudi
onshore wind to be added in this Arabia and 2.2 GW from Morocco.

GWEC | GLOBAL WIND REPORT 2023 109
 Market Outlook 2023–2027

Regional onshore and offshore wind outlook for new installations (GW)

4.9
23.3 4.7
21.0 21
0.9 1
19.1 18.9
5 17.8 3.4
16.2 16.7
14.8 14.9 15.4 5.1 14.5 3.1
0.9
5.2 0.8
5.9 5.4
5.2
3.9
3.8
0.5 1.2 2.5
9.6 9 10 11 14 16
0.3 2.3
0.3
0.9
0.3
2022 2023e 2024e 2025e 2026e 2027e 2022 2023e 2024e 2025e 2026e 2027e 2022 2023e 2024e 2025e 2026e 2027e
North America onshore Latin America onshore Europe onshore Africa onshore Middle East onshore

70.1 70.5 72.5 72.3 35.5

66.8 6 7.8 7.8 32.4
3.4 5.9
4.2 4.5 4.7 4.5 4.5
3.4
4.8
25.7
12.1
3.8 10
37.0 2.5 18.0 18.2
0.5 1.7 7
1.8
60 60 60 60 60 17.8 5.8 3
8.8
32.6 14.9 17.6 18.9
2.5 13.6
11.8
6.3

2022 2023e 2024e 2025e 2026e 2027e 2022 2023e 2024e 2025e 2026e 2027e
China onshore India onshore Other Asia-Pacific onshore Asia-Pacific offshore Europe offshore North America offshore

110 GWEC.NET
APPENDIX
 Appendix

Global Wind Report 2023 - Methodology and Terminology

Data definitions and adjustments received. GWEC made the adjustments Latin America: South, Central America experts and wind turbine
GWEC reports installed and fully to both new and cumulative installations and Mexico manufacturers.
commissioned capacity additions and in 2021 for all the markets where
total installations. New installations are updated statistics are available. Europe: Geographic Europe including Used terminology
gross figures not deducting Norway, Russia, Switzerland, Turkey GWEC uses terminology to the best
decommissioned capacity. Total Definition of regions and Ukraine of our knowledge. With the wind
installations are net figures, adjusted GWEC adjusted its definition of industry evolving, certain terminology
for decommissioned capacity. regions for the 2018 Global Wind Sources for the report is not yet fixed or can have several
Report and maintains these in the GWEC collects installation data from connotations. GWEC is continuously
Historic installation data has been 2023 edition, specifically for Latin regional and country wind adapting and adjusting to these
adjusted based on the input GWEC America and Europe. associations, alternatively from industry developments.

Common industry acronyms

APAC Asia-Pacific EEZ Exclusive Economic Zone IPCC Intergovernmental Panel on Climate NEA China’s National Energy Administration
BNEF Bloomberg New Energy Finance EIA Environmental Impact Assessment Change NFTs Non-Fungible Tokens
BOEM Bureau of Ocean Energy Management EMDEs Emerging Markets and Developing IPP Independent Power Producers NSEC North Seas Energy Cooperation
(BOEM) Economies IRA The US Inflation Reduction Act O&M Operation And Maintenance
C&I Commercial And Industrial EMS Energy Management System IRENA International Renewable Energy OEMs Original Equipment Manufacturers
CAGR Compound Annual Growth Rate EPC Engineering Procurement Construction Agency OSS One Stop Shop
CAISO California Independent System ESG Environmental, Social, and Corporate IRP Integrated Resource Plan OPEX Operational Expenditure
Operator Governance ISO Independent System Operator OWSC Offshore Wind Service Contracts
CAPEX Capital Expenditure EU European Union ITC Investment Tax Credit PDP Power Development Plan of Vietnam
CBAM Carbon Border Adjustment Mechanism EV Electric Vehicle kt Kilo Tonnes PEA Provincial Electricity Authority of
CCER China Certified Emission Reduction EVOSS Energy Virtual One-Stop Shop kWh Kilowatt Hour Thailand
CCGT Combined Cycle Gas Turbine FDI Foreign Direct Investments LATAM Latin America PPA Power Purchase Agreement
CCUS Carbon Capture, Utilisation, And FID Final Investment Decision LCOE Levelised Cost of Energy PV Photovoltaic
Storage FiT Feed-In Tariff LNG Liquefied Natural Gas PTC Production Tax Credit
CfD Contract for Difference FTE Full-Time Equivalent MEA Metropolitan Electricity Authority of R&D Research And Development
CO2/ GDP Gross Domestic Product Thailand RECs Renewable Energy Certificates
CO2e Carbon Dioxide/ Equivalent GHG Greenhouse Gases MNRE Ministry Of New and Renewable REE Rare Earth Element
COD Commercial Operation Date GST Goods and Services Tax Energy ROI Return on Investment
COP Conference of the Parties GW Gigawatt MOIT Ministry of Industry and Trade of RPS Renewables Portfolio Standards
DFI Development Finance Institution HSSE Health, Safety, Security, And Vietnam RTO Regional Transmission Organisation
DNSH Do No Significant Harm Environment MOU Memorandum of Understanding STEM Science, Technology, Engineering and
DSR Demand-Side Response HVDC High-Voltage Direct Current Mt Metric Tonnes Mathematics
ECA Export Credit Agency IEA International Energy Agency MW Megawatt TW Terawatt
EGAT Electricity Generating Authority of IFC International Finance Corporation MWh Megawatt Hour TWh Terawatt Hour
Thailand IoT Internet of Things NDCs Nationally Determined Contributions

112 GWEC.NET
 Appendix

About GWEC GWEC Market Intelligence Areas

Market Intelligence
GWEC Market Intelligence provides a Market Insights
Policy and Regulations Asset Owners
series of insights and data-based analysis Market statistics,
Country profiles, policy Database of asset owners
on the development of the global wind market outlook,
industry. This includes a market outlook,
updates, offshore updates in key markets
auction/tender updates
country profiles, policy updates, deep-
dives on the offshore market among many
other exclusive insights.

GWEC Market Intelligence derives its

insights from its own comprehensive Technology/ Supply Chain Energy Transition O&M
databases, local knowledge and leading Wind turbine data, technology Shift to value-focused, new ISP - OEM - Self Perform
industry experts. trends, component assessment wind-based solutions database for key markets

The market intelligence team consists of

several strong experts with long-standing
industry experience across the world.

GWEC Market Intelligence collaborates

with regional and national wind
associations as well as its corporate
members.
GWEC Market Intelligence created
How to access GWEC Market a Member-only area to provide more
Intelligence Corporate GWEC Members in-depth market intelligence to
l Wind energy associations
GWEC’s members and their
l Market Intelligence subscription
employees.
Click here to get your login
Contact
Contact Feng Zhao feng.zhao@gwec.net

GWEC | GLOBAL WIND REPORT 2023 113
 Appendix

GWEC Market Intelligence Products in 2023

Product Frequency
1. Wind Energy Stats/Market Data
Wind Stats 2022 (historic annual, accumulative, decommision data) Annual
Global Wind Report 2023 Annual
Wind Energy Statistics (wind energy penetration rate, jobs) Annual

2. Country Profiles/Policy Updates

Country Profiles Onshores/Country Profiles Offshore Annual
Ad-hoc Policy Updates Ad-hoc

3. Market Outlook
Global Wind Market Outlook 2023-2027 (Q1 and Q3) Database + Report Semi-Annual
India Market Outlook Report 2023-2027 Annual
Global Wind Workforce Outlook 2023-2027 Annual

4. Supply Side Data

Global Wind Turbine Supply Side Data Report 2022 (by OEM, by technology, by turbine ratings, models and drive train, etc) Annual

5. Auctions/Tenders
Global Wind Auction Database Annual/Auction Trends and Learnings Quarterly

6. Offshore Wind Market

Global Offshore Wind Report 2023 / Market Entry Opportunities Database Annual/Quarterly
Global Offshore Project Pipeline (database, in operation and under construction) Annual/Quarterly
Global Offshore Turbine Installation Vessel Database and Report Annual/Quarterly

7. Components Assessment
Blade (Q4 2023), Generator (Q4 2021), Gearbox (Q4 2022), followed by other components Special Report

8. Wind Asset Owners/Operators

Asset Owners and Operators Database (Onshore & Offshore Ranking) Annual
Asset Owners and Operators Status Report (including strategical trends) Annual

9. O&M
O&M Service Provider Database (ISP - OEM - Self-perform) Annual
O&M Service Provider Status Report (including regional trends) Annual

10. Energy transition, Digitalisation, New Technologies

Position papers / studies - permitting, Corporate PPAs / New solutions, GWEC policy recommendations Special Report

114 GWEC.NET
 Global Leaders

GWEC Global Leaders

The Global Wind Energy Council’s Global Leaders are an exclusive leadership group of decision-makers and top-tier members who form the basis of the
Association’s Executive Committee, which drives the work programme and plays a major role in shaping GWEC’s priorities for its efforts in the short and
long-term strategy.

Siemens Gamesa Shell Ørsted Mainstream Renewable Power

Siemens Gamesa unlocks the power of wind. Shell is building a global integrated power The Ørsted vision is a world that runs entirely Mainstream Renewable Power is a leading
For more than 40 years, we have been a business spanning electricity generation, on green energy. Ørsted develops, constructs, pure-play renewable energy company, with
pioneer and leader of the wind industry, and trading and supply. Shell entered the offshore and operates offshore and onshore wind farms, wind and solar assets across global markets,
today our team of more than 26,000 colleagues wind business in 2000 as part of a consortium solar farms, energy storage facilities, renewable including in Latin America, Africa, and
work at the center of the global energy that installed the first offshore wind turbine in hydrogen and green fuels facilities, and Asia-Pacific. Mainstream is one of the most
revolution to tackle the most significant UK waters. Today, we have deployed, or are bioenergy plants. Moreover, Ørsted provides successful developers of gigawatt-scale
challenge of our generation – the climate crisis. developing, over eight gigawatts (GW) of wind energy products to its customers. Ørsted is the renewables platforms, across onshore wind,
With a leading position in onshore, offshore, and across North America, Europe, the UK, and Asia. only energy company in the world with a offshore wind, and solar power generation. It
service, we engineer, build and deliver We see offshore wind as a critical way of science-based net-zero emissions target as has successfully delivered 6.5 GW of wind and
powerful and reliable wind energy solutions in generating renewable electricity for our validated by the Science Based Targets initiative solar generation assets to financial close-ready.
strong partnership with our customers. A global customers and moving Shell towards its target (SBTi). Ørsted ranks as the world’s most In May 2021, Aker Horizons acquired a 75%
business with local impact, we have installed of being a net-zero emissions energy business sustainable energy company in Corporate equity stake in the company, accelerating its
more than 120 GW and provide access to clean, by 2050 or sooner, in step with society. Knights’ 2022 index of the Global 100 most plans to deliver its high-quality pipeline of over
affordable and sustainable energy that keeps sustainable corporations in the world and is 16 gigawatts of clean energy. Mainstream has
the lights on across the world, while supporting recognised on the CDP Climate Change A List raised more than EUR3.0bn in project finance to
the communities where we operate. as a global leader on climate action. date and employs more than 420 people across
five continents.

GWEC | GLOBAL WIND REPORT 2023 GWEC.NET 115
 Global Leaders

GE Renewable Energy Iberdrola Vestas Equinor

GE Renewable Energy harnesses the earth’s With over 170 years of history behind us, Vestas is the energy industry’s global partner We are looking for new ways to utilise our
most abundant resources – the strength of the Iberdrola is now a global energy leader, the on sustainable energy solutions. We design, expertise in the energy industry, exploring
wind, the heat of the sun and the force of water; number one producer of wind power, and one manufacture, install, and service wind turbines opportunities in new energy and driving innovation
delivering green electrons to power the world’s of the world’s biggest electricity utilities in across the globe, and with +151 GW of wind in oil and gas around the world. We know that the
biggest economies and the most remote terms of market capitalisation. We have brought turbines in 86 countries, we have installed more future has to be low carbon. Our ambition is to be
communities. With an innovative spirit and an the energy transition forward two decades to wind power than anyone else. the world’s most carbon-efficient oil and gas
entrepreneurial mindset, we engineer energy combat climate change and provide a clean, producer, as well as driving innovation in offshore
Through our industry-leading smart data
products, grid solutions and digital services that reliable and smart business model, to continue wind and renewables. We plan to reach an installed
capabilities and +129 GW of wind turbines
create industry-leading value for our customers building together each day a healthier, more net capacity of 12-16 GW from renewables by
under service, we use data to interpret, forecast,
around the world. accessible energy model, based on electricity 2030, two-thirds of this will be from offshore wind.
and exploit wind resources and deliver
With five decades of ocean engineering and
best-in-class wind power solutions. Together
project management expertise, focus on safe and
with our customers, Vestas’ more than 29,000
efficient operations, in depth knowledge of the
employees are bringing the world sustainable
energy markets, skilled personnel and a network of
energy solutions to power a bright future.
competent partners and suppliers, Equinor is
uniquely positioned to take a leading role in the
offshore wind industry. From building the world’s
first floating wind farm to building the world’s
Corio biggest offshore wind farm we are well underway
Corio Generation is a specialist offshore wind to deliver profitable growth in renewables be a
business dedicated to harnessing renewable leading company in the energy transition.
energy worldwide. Our 20+ GW development CIP
portfolio is one of the largest in the world, Founded in 2012, Copenhagen Infrastructure
spanning established and emerging markets, Partners P/S (CIP) today is the world’s largest SSE
as well as floating and fixed-bottom dedicated fund manager within greenfield SSE Renewables is a leading developer and
technologies. renewable energy investments and a global operator of renewable energy, headquartered
leader in offshore wind. The funds managed by in the UK and Ireland, with a growing presence ReNew
With our leading industrial expertise and deep CIP focuses on investments in offshore and internationally. Its strategy is to lead the ReNew is the leading decarbonisation solutions
access to long-term capital, we work closely onshore wind, solar PV, biomass and energy- transition to a net zero future through the company listed on Nasdaq (Nasdaq: RNW,
with our partners in the creation and from-waste, transmission and distribution, world-class development, construction and RNWWW). ReNew’s clean energy portfolio of
management of projects from origination, reserve capacity, storage, advanced bioenergy, operation of renewable power assets and it is ~13.4 GWs on a gross basis as of December 31,
development and construction, and into and Power-to-X. building more offshore wind energy than any 2022, is one of the largest globally. In addition to
operations. other company in the world. Part of the being a major independent power producer in
CIP manages ten funds and has to date raised FTSE-listed SSE plc, SSE Renewables is taking India, we provide end-to-end solutions in a just
Corio Generation is a Green Investment Group approximately EUR 19 billion for investments in action to double its installed renewable energy and inclusive manner in the areas of clean energy,
(GIG) portfolio company, operating on a energy and associated infrastructure from more capacity to 8GW by 2026 as part of its Net Zero green hydrogen, value-added energy offerings
standalone basis. GIG is a specialist green than 140 international institutional investors. CIP Acceleration Programme, and increase through digitalization, storage, and carbon
investor within Macquarie Asset Management, has approximately 400 employees and 11 renewables output fivefold to over 50TWh markets that increasingly are integral to
part of Macquarie Group. offices around the world. annually by 2031. addressing climate change.

116 GWEC | GLOBAL WIND REPORT 2023 GWEC.NET
 Appendix

Leading Sponsor

Supporting Sponsor

Associate Sponsors

4/02/11 15:40:22
Lincoln Electric Bryan O’Neil (Bryan_ONeil@lincolnelectric.com) Harting Electric Guanghai Jin (Guanghai.Jin@harting.com)
Hamburg Messe info@windenergyhamburg.com Techstorm Martijn van Breugel (martijn@techstorm.com)
(WindEnergy Hamburg) Bureau Veritas Paul Trevillyan (paul.trevillyan@bureauveritas.com)

GWEC | GLOBAL WIND REPORT 2023 117
Global Wind Energy Council

Rue de Commerce 31
1000 Brussels, Belgium
T. +32 490 56 81 39
info@gwec.net

@GWECGlobalWind
@Global Wind Energy Council (GWEC)
@Global Wind Energy Council

www.gwec.net GLOBAL WIND ENERGY COUNCIL