2023 was record year for wind installations as world ramps up clean energy

The world installed 117 gigawatts of new wind power capacity in 2023, a 50% increase from the year before, making it the best year for new wind projects on record, according to a new report by the industry's trade association.

The latest Global Wind Report, published Tuesday by the Global Wind Energy Council, explores the state of the global wind industry and the challenges it's facing in its expansion.

The increase in wind installations "shows that the world is moving in the right direction in combating climate change," the report said.

But the authors warned that the wind industry must increase its annual growth to at least 320 gigawatts by 2030 in order to meet the COP28 pledge to triple the world's installed renewable energy generation capacity by 2030, as well as to meet the Paris Agreement's ambition of capping global warming to 1.5 degrees Celsius (2.7 Fahrenheit).

"It's great to see wind industry growth picking up, and we are proud of reaching a new annual record," said GWEC CEO Ben Backwell, "however much more needs to be done to unlock growth."

Still, the report shows that wind is becoming "better understood and appreciated across the globe for the value it brings as a renewable energy source," said George Aluru, CEO of the Electricity Sector Association of Kenya, an industry body for private investors in electricity. "This increased renewable energy supply supports climate goals in line with ensuring sustainable development," he conveyed.

As climate change continues to manifest, there's a growing appreciation for wind power and other renewables as a necessary measure to reduce reliance on fossil fuel electricity generation and to counteract climatic alterations. Many parts of the globe currently find renewable energy to be the most cost-effective approach for electricity supply.

1,021 gigawatts is the present global tally of accumulated wind power capacity. Christian Andresen, heading research at SINTEF Energy Research, an independent sector-specific research organisation based in Norway, observed that the report potrays a wind industry "picking up pace" through pulling in investment and maturing, which he believes may trigger further momentum spurring added growth.

For the planet, Andresen expressed, it suggests meeting climate targets by significantly increasing our efforts is achievable. "This is an important building block in the transition towards a net-zero emission society," Andresen said.

Mirroring 2022's wind power installation figures, China took the lead in 2023 as well, topping all other nations in both new onshore and offshore wind power installations. It accounted for 65% of the new setups, followed by the US, Brazil and Germany in order of magnitude. In 2023, these four players collectively represented 77% of global new installations.

The report highlights that the expansion of wind power installations is largely focused in a handful of major countries, attributing this to robust market frameworks that facilitate the scaling up of wind installations in these nations. As of the end of last year, the top five markets were China, the US, Germany, India and Spain.

However, other countries and regions are making strides, having seen record growth levels in 2023. In 2023, Africa and the Middle East installed nearly 1 gigawatt of wind power capacity, almost three times the amount installed the previous year. With forthcoming projects in South Africa, Egypt and Saudi Arabia, the report forecasts that new onshore wind additions for Africa and the Middle East will increase fivefold by 2028 compared to 2023.

Markets to keep an eye on include Kenya, where wind power accounts for approximately 17% of electricity, according to the report. The country is home to Africa's largest wind farm, the 310-megawatt Lake Turkana Wind Power Project, and the report mentions new planned large-scale wind projects in the country, including a 1-gigawatt wind park by local power generator KenGen.

However, the report points out that constructing wind power installations is costly and requires significant initial investments. Emerging and developing countries face higher capital costs and pay higher loan rates to expand their wind power, the report said.

Erin Baker, a professor of Industrial Engineering and Operations Research at the University of Massachusetts, has highlighted that wind energy faces its own set of challenges, including supply chain issues and grid integration. She pointed out that integrating intermittent wind energy into the electricity system while maintaining reliability requires innovation.

Offshore wind, for instance, demands specialised equipment and manufacturing, as well as expertise in finance and business models. However, she also noted the rapid growth of wind energy, as indicated in the report, suggesting that countries are developing the necessary supply chains to sustain this expansion. This will "almost certainly" result in cost reductions and technological advancements as more infrastructure is established globally, she said.

"The recent growth, and nations support for the wind industry, are hopeful signs that the supply chain is being established," Baker added.