WoodMac talks future of US wind turbine market as China leads global order volume

Energy Materials 13 September 2022 15:49
Baku, Azerbaijan Trend News Agency
WoodMac talks future of US wind turbine market as China leads global order volume

High wind production activity in China resulted in global wind turbine orders reaching 43 GW in the second quarter of 2022, a new record of 36 percent increase year-on-year, Trend reports via Wood Mackenzie, a global research and consultancy group.

According to the report, the cost of global wind turbine orders amounted to approximately $18.1 billion.

“With ambitious decarbonization targets, China aims to support an estimated average build of more than 55 GW per year over the next 10 years. In the second quarter of 2022 alone, China accounted for a record 35 GW of activity and is at 45 GW year-to-date. Europe showed growth in order intake with 3.8 GW, doubling its first-quarter activity. Order intake activity in the US remained slow, with less than 2 GW through the first half of 2022,” the report said.

Meanwhile, global orders for offshore wind energy in the second quarter of this year exceeded 6 GW, which is only the third time that offshore orders exceed this number. Developers in the Chinese market have received the largest ever portfolio of orders for the offshore wind energy sector in the first half of 2022, which accounts for 74 percent of global orders on the shelf. The acceptance of offshore orders in China is now consistently increasing for three quarters after almost a year of calm.

“China is surging and we are seeing strength in Europe too. The US is where demand has been sluggish. This is due to tough market conditions, such as labor cost increases, inflation and supply chain disruptions. As a result, securing new orders in the US has been difficult, which has had a negative impact on [original equipment manufacturers] OEMs dependent on the market, primarily Western-based OEMs,” the report noted.

At the same time, with the adoption of the US’s IRA bill, aimed at cutting climate pollution, WoodMac expects a surge in wind energy activity over the second half of 2022.

“With these new incentives, wind power projects have become more economically viable and thus more competitive compared to conventional technologies. If procurement of wind turbines in China continues at its current pace and intake activity picks up in the US, the wind turbine market could be set for a record year,” WoodMac explained.