Market Trends of Global Wind Power Industry
The Offshore Wind Power Sector is Expected to Witness Significant Growth
- Europe is the leading continent in offshore wind and is home to the most significant operational wind farms globally. The region's offshore wind capacity is large enough to meet Europe's electricity needs, which will only continue to grow in the upcoming years.
- Installing wind farms in offshore areas is becoming a lucrative market because offshore winds are much faster than onshore winds. Also, offshore wind farms are more convenient than onshore wind farms, given that offshore areas have more wind speed and less land obstruction.
- Offshore wind energy has increased significantly over the last five years worldwide. According to the International Renewable Energy Agency (IRENA), in 2023, offshore wind energy was 72.66 GW, an increase of 1.57 times compared to 2019. The number is expected to rise significantly during the forecast period as many wind projects are expected to be operational in the upcoming years.
- In March 2024, the government of the United Kingdom announced the most significant budget of GBP 1 billion (USD 1.25 billion) for renewable energy projects, which includes GBP 800 million (USD 1 billion) for offshore wind and GBP 105 million (USD 131 million) for floating offshore wind and geothermal technologies.
- Similarly, in September 2023, the United Kingdom's Government announced the distribution of Contract for Difference (CFDs) to 95 new renewable energy initiatives, ensuring 3.7 GW of clean energy capacity. These projects include onshore wind, solar, and tidal energy developments. Furthermore, Octopus Energy, based in the United Kingdom, plans to invest USD 20 billion globally in offshore wind by 2030. The company, which is a subsidiary of Octopus Energy Group, stated that the investment will generate 12 gigatonnes (GW) of renewable electricity per year, enough to power 10 million homes.
- Furthermore, in April 2024, the United States Department of Energy's Wind Energy Technologies Office (WETO) announced an investment of USD 48 million in offshore wind, including enhancing the research and development of offshore wind platforms. These types of projects are expected to accelerate wind energy generation across the world between 2024 and 2029.
- Hence, with such a scenario, the offshore wind power market is expected to grow significantly from 2024 to 2029.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is the world's most significant wind power market, with top markets including China, India, and Australia. Encouraging growth, particularly in China, is likely to propel it to the top spot between 2024 and 2029.
- According to the International Renewable Energy Agency (IRENA), in 2023, wind energy across Asia was 508.45 GW, an increase of 97.32% compared to 2019. China generated 441.89 GW of wind energy in 2023 and became the leader, followed by India, which generated 44.74 GW. The number is expected to rise significantly between 2024 and 2029 as many wind projects are expected to be operational in the upcoming years.
- The government across the region offers multiple renewable energy projects to the leading organizations to boost energy production. For instance, in December 2023, Apraava Energy received the 1200 MW auction capacity project of the Inter-State Transmission System (ISTS) conducted by the Energy Corporation of India (SECI) to construct a 300 MW Wind farm in Karnataka, India. The project's construction is as per the Power Purchase Agreement (PPA), which is for 25 years at a competitive tariff of INR 3.24/kWh.
- Furthermore, the demand for renewable energy has been rising exponentially across the region for the past few years, and companies are investing significantly across Asia-Pacific. For instance, in May 2023, octopus Energy, a United Kingdom-based company, announced an investment of USD 1.8 billion for renewable energy projects, including wind energy projects across Asia-Pacific. The company is likely to invest in wind, solar, and other clean energy projects by 2027. The investment also focused on Japan's wind energy target to increase offshore wind energy capacity by 150 GW by 2030. All these types of targets and investments are likely to drive the market between 2024 and 2029.
- Therefore, large-scale wind power installations, upcoming projects, and plans to expand the offshore wind segment are expected to drive the Asia-Pacific market between 2024 and 2029.
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