GWEC forecasts 300 GW of new wind capacity in next five years

The Global Wind Energy Council (GWEC, Brussels, Belgium) expects growth of around 300 gigawatts of new wind capacity to be installed in the next five years, according to its recently published annual Global Wind Report. That would mean total wind energy growth of about 50 percent by the end of 2023.

According to report data, 2018 was a positive year for the wind industry, with 51.3 gigawatts of new installations, with current total installed wind capacity reaching 591 gigawatts. Market-based mechanisms, such as auctions, tenders and Green Certificates, are said to be the main drivers behind new installations in 2018.

Going forward, GWEC expects that governmental support, in the forms of auction and tender programs and renewable targets, will continue to be a significant driver for new installations, as well as increased commercial opportunities as the wind energy industry continues to prove its cost-competitiveness.

In addition to government support, the report identifies three global trends as the main drivers of future market growth: changing business models of industry participants; corporate procurement in new markets unlocking further volume; and new wind opportunities through value-focused solutions like hybrid generation plants.

Changing business models of industry stakeholders are said to be driving growth by intensifying competition. GWEC says that increasing digitalization brings in new stakeholders, while stakeholders already in the market are revising their models to make investments outside of their core business.

Meanwhile, GWEC sees a steady growth in corporate sourcing as large companies choose wind as their main preference for power procurement, which, if supported by local regulators, is said to have the potential to unlock further volume.

GWEC, together with key industry stakeholders, is working to increase policy momentum for wind energy as well.

“2018 was a pivotal year for the offshore industry, particularly in Asia. If governments remain committed, offshore wind will become a truly global market in the next five years,”  says Karin Ohlenforst, director of market intelligence.

“We have changed the way we gather, analyze and share data. This year’s Global Wind Report is built on our new and improved Market Intelligence function that offers unmatched exclusive data and insights. We are growing our team and are more dedicated than ever to steering the industry and supporting our members into new and exciting opportunities for wind energy,” says Ben Backwell, CEO.

The full Global Wind Report is available here.