During the next 10 years, more than 680GW of wind power capacity will come online, according to a recent study by Wood Mackenzie, an Edinburgh, Scotland-based stockbroker and equity research firm.
Wood Mackenzie updated its Global Wind Power Market Outlook Update: Q4 2018 and increased the wind power capacity estimate by 2 percent compared to the third quarter outlook. Most wind power capacity increases will occur between 2020 and 2023, boosting annual capacity additions by an average of 2.7GW.
One of the main drivers of this updated, higher estimate is the European offshore wind capacity.
“With 16GW of offshore wind power capacity installed in Europe by the end of 2018 and more than 47GW expected to come online in the region from 2018 to 2027, the European offshore sector continues to be a focal point of growth for the wind power industry,” says Luke Lewandowski, lead author of the study and director of Wood Mackenzie’s Americas power and renewables research division.
European governments have supported offshore wind production to reduce carbon emissions and develop domestic power supply. Japan and South Korea have also bolstered their wind production portfolio with significant growth of offshore wind power capacity. The countries have a more than 1.5GW upgrade quarter on quarter, according to the Wood Mackenzie report.
The United States offshore wind market also received a quarter-on-quarter upgrade, too. U.S. offshore capacity will increase to 10GW by the end of 2027, which represents 10 percent of all new capacity during the next 10 years, according to the report.
Another positive indicator cited in the report is the strong turbine order activity in 2018. China continues to rise among the global offshore energy market. China will account for almost one-third of new offshore capacity added throughout the word from 2018 to 2027.
For onshore production, Sweden, Norway and Finland have contributed the most to the positive wind power outlook during the most recent quarter. Competitive pricing has triggered several project investment announcements and power offtake commitments, especially in the corporate and industrial sector. These three countries account for 15 percent of new onshore capacity to be installed in Europe during the next 10 years.