GWEC call for supply chain action as wind sector prepares to bounce back in 2023

Following a difficult year in the wind sector, the Global Wind Energy Council (GWEC) has forecasted that the sector will bounce back in 2023 with 680 GW of wind capacity expected to be installed globally between 2023 and 2027. In its Global Wind Report 2023, GWEC emphasized that without policy action, there will be an emergence of supply chain bottlenecks that could limit the sector’s growth. The report further revealed that onshore wind in China will account for 300 GW of that capacity.

The wind sector has experienced a slowdown in recent years, with the world adding only 77.6 GW of wind capacity in 2022 after installing more than 90 GW in each of the previous two years. However, a faster rate of deployment in large developing countries like the US Inflation Reduction Act, Europe's increased renewables ambition, and China's continued expansion of renewables are expected to accelerate deployments in the years ahead. GWEC projected that wind power installations will exceed 100 GW in 2023 and average 136 GW per year until 2027, making a compound annual growth rate of 15%. The industry is expected to reach 2 TW in operation by the end of 2030 after achieving its first 1 TW later this year.

GWEC highlighted the need for critical investment in the supply chain, pointing out that spare capacity is limited and could disappear by 2026. It called for policy action to prevent supply chain shortfalls, which could limit the growth of the wind sector, particularly in Europe and the US. The risk of supply chain shortfalls could be exacerbated by policies seeking to reshore manufacturing away from China and protect local industry and jobs, as per the organization's report.

The report also underlined that the wind industry is a key driver of decarbonization and can make significant contributions to reaching net-zero emissions targets.