Wind Energy Industry Expected to Rapidly Accelerate in 2023, Reaching Historic Milestone

Global Wind Energy Council Projects 1 Terawatt of Installed Wind Energy Worldwide, With 680 Gigawatts of New Capacity by 2027.
 

According to the Global Wind Energy Council, the wind power industry is set to rapidly accelerate this year, reaching a historic milestone of 1 terawatt, or 1,000 gigawatts, of wind energy installed worldwide. In its annual Global Wind Report, the council also projected that 680 gigawatts of new onshore and offshore wind will be installed by 2027, which is enough to power about 657 million homes annually. 
 

The council cited incentives and policy changes in key nations, such as the Inflation Reduction Act in the United States and policies in Europe and China, for the projected growth, which will help to overcome factors that led to a slowdown in 2022. The industry added about 78 gigawatts of wind capacity globally in 2022, which was down 17% from 2021, but still the third-best year ever for new capacity. 

The wind power market stalled in 2022 due to government policies that encouraged “race to the bottom” pricing, inflation, higher logistics costs, and inefficient permitting and licensing rules. However, the council believes that the twin challenges of secure energy supplies and climate targets will propel wind power into a new phase of extraordinary growth. 
 

China led the world in both onshore and offshore wind development last year and is expected to continue to lead in 2023. The Asia-Pacific region surpassed Europe in 2022 as the world’s largest offshore wind market, according to the report. Europe continues to build the most floating offshore wind farms. 
 

The council expects that 2023 will mark the start of a decisive turnaround, as governments of all the major industrialized nations have enacted policies that will result in a significant acceleration of deployment. However, the council warned that even the rapid growth projected for the industry will fall short of what experts say wind needs to contribute to renewables growth by 2030 to stay within the 1.5 degrees Celsius (2.7 degrees Fahrenheit) warming threshold that scientists have said is imperative to prevent the worst effects of climate change.