Wind energy is set to hit a major milestone, with global installed capacity predicted to surpass 1 terawatt (TW) by the end of 2023, according to market outlook from Wood Mackenzie. The milestone comes after more than 40 years since the industry first hit 1TW, but the next terawatt is expected to be reached within the next eight years. This represents a significant acceleration of growth for the industry.
China is predicted to account for 50% of new capacity globally over the next decade, with annual wind capacity additions set to average an enormous 80 GW. Meanwhile, European countries are set to add more than 343 GW of offshore and onshore wind capacity, with offshore wind accounting for 39% of new capacity. Emerging Eastern European markets and the repowering of older wind farms in markets such as Germany and Spain are also expected to contribute to wind energy adoption.
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Offshore wind is experiencing rapid growth, with Wood Mackenzie forecasting sevenfold growth by 2032, accounting for a 26% share of total capacity over the 10-year outlook. Thirty countries are set to add offshore wind capacity over the coming decade, but the EU and China are expected to account for 81% of global offshore wind capacity growth.
The US is a key market for growth, but is facing challenges in terms of tax credit eligibility and grid-connection backlog. However, with policy clarity, approval and investment in transmission projects, and development of the offshore market’s nascent supply chain, annual additions are predicted to average 20 GW per year from 2026 through 2032.
Despite these challenges, clean energy developments such as solar panels, wind turbines, electric vehicles, and heat pumps, along with the policies and investments that are supercharging their growth, are expanding quickly. According to the International Energy Agency executive director Fatih Birol, “clean energy is moving faster than you think”.
