The global wind turbine industry witnessed a 12% year-on-year growth in its order intake to 69.5 GW in the first half of the year, Wood Mackenzie reveals.
China dominates the global wind turbine industry
China continues to defend its position as the leading market in the wind turbine industry. The analysis revealed that it accounted for a whopping 44 GW of activity in the first six months of the year. The demand for wind turbines in the country remained steady YoY.
“We’ve seen strong demand out of China this year, which is really encouraging.”
Luke Lewandowski, Wood Mackenzie’s Global Renewables Research VP
Orders beyond China reported a YoY order growth of 47% to more than 25 GW capacity in H1 2023. This significant progress primarily contributed to the upward trend in the industry.
To be specific, orders in North America had a more than fourfold increase YoY to 7.7 GW from just 1.9 GW in the same period last year. The report further noted that two foreign orders contributed 49% of the overall orders.
Overall, global wind turbine orders reached $25.3 billion in Q2 2023 and $40.5 billion in H1 2023.
“Supply chain challenges remain, but conditions have improved enough to spark procurement decisions. Momentum from the Inflation Reduction Act in the US has helped to motivate order activity, although increasing clarity and market certainty will drive an even larger volume.
China’s intake continues to be incredibly impressive as well, even with activity remaining flat through the first half of the year. Demand in the global offshore market, particularly in the US and Europe, has been one of the main drivers of this growth.”
Wood Mackenzie
Offshore wind orders expanded 26% YoY
The report also indicated that offshore wind orders grew 26% YoY to 12 GW of activity and 17% capacity in H1 2023.
On the other hand, quarterly capacity increased 48% YoY to a record-breaking 91 GW.
“Momentum had been building for some time in the offshore market and many deals had been conditional as project developers awaited approvals and permitting.”
Luke Lewandowski, Wood Mackenzie’s Global Renewables Research VP
Successful deals
VP Lewandowski also asserted that the industry had finalized some major deals in the second quarter despite the challenges faced by giants Ørsted and Siemens Gamesa in the previous quarters.
“We saw several really big deals officially reach a final investment decision in Q2, including orders of 2,640 MW and 1,176 MW in North America, which helped drive the record numbers and breathe some life into these markets.
The fact that these deals became firm during a difficult time for OEM financials and amid the cancellation of several offtake agreements for large projects is both encouraging and significant.”
Luke Lewandowski, Wood Mackenzie’s Global Renewables Research VP
Spanish-German wind developer Siemens Gamesa Renewable Energy (SGRE) advanced to the first spot in both the onshore and offshore industry with 5.9 GW new order capacity in Q2 2023.
Meanwhile, Chinese developer Goldwind trailed behind SGRE with 4.9 GW of order intake activity. Another company from China (Windey) claimed the third spot with 4.4 GW capacity.
As for the first half of 2023, China’s Envision ranked first with 9.7 GW capacity. Windey followed with 8.7 GW and SGRE at 8.2 GW.
See Also:
- Siemens Gamesa faces major wind turbine issues, poses a challenge for clean energy transition
- The world’s most potent wind turbine has generated its first power
- China launches the world’s largest rotor diameter offshore wind turbine
- World’s First Wind Turbine with Recyclable Blades is up and spinning
- A turbine prototype has set a new 24-hour wind power world record
The rapid expansion of the wind energy industry is unsurprising, given the global governments’ efforts in promoting the shift to sustainable energy. The prevalence of wind power application and consumption will significantly aid the electrical grid in supporting the growing number of electric vehicles.
