Recently, The Global Wind Energy Council (GWEC) published the Global Wind Report for 2022. The GWEC was founded in 2005 to act as a reputable and representative platform for the wind energy sector at the international level. This comprehensive report delves into the state of the global wind power industry, providing crucial insights into its growth, challenges, and future trends.
Key Findings of the Report
The report reveals that wind energy installations around the world must quadruple annually from the 94 GW installed in 2021 within this decade. This substantial increase is deemed necessary to meet the global climate targets set by the Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius above pre-industrial levels and achieve net-zero emissions by 2050. According to the findings, new installations totaling 93.6 GW in 2021 brought the cumulative global wind energy capacity to 837 GW—an annual growth of 12%.
Growth of Onshore and Offshore Wind Markets
The onshore wind market added 72.5 GW worldwide in 2021, marking an 18% decrease compared to the previous year. This downturn can be attributed to a slowdown in China and the US, two of the largest wind markets in the world. Conversely, the offshore wind market had its best-ever year in 2021 with 21.1 GW commissioned. However, the boom is expected to be short-lived, with projections of a decrease in offshore installations to 2019/2020 levels in 2022 due primarily to a reduction in China.
Offshore Wind Energy and Reduction of Emissions
The report also outlined the potential of offshore wind energy in positively affecting investment returns and reducing greenhouse gas emissions. If scaled up, offshore wind energy generation could lessen carbon dioxide emissions by 0.3-1.61 gigatonnes annually by 2050.
Challenges Faced by the Wind Energy Sector
Despite its potential, the wind energy sector faces several significant obstacles to growth. These challenges include inconsistent and short-sighted policy environments, poorly designed markets that impede viable renewable energy projects, infrastructure and transmission bottlenecks, an absence of suitable industrial and trade policies for renewable technologies, and negative political or misinformation campaigns.
Wind Energy Sector in India
For India, over 1.4 GW of wind was installed in 2021, surpassing the previous year’s installations by 300 MW. With a target of installing 5 GW of offshore capacity by 2022 and 30 GW by 2030, India stands on the brink of significantly developing its offshore wind energy facility. India is not without potential, boasting a 7,600 km coastline capable of generating 127 GW of offshore wind energy.
Wind Energy Outlook for India
The Indian wind market outlook for 2022 and 2023 is positive, projected at 3.2 GW and 4.1 GW of onshore wind installations, respectively. This growth is backed by strategic initiatives such as the National Wind-Solar Hybrid Policy and the National Offshore Wind Energy Policy, which aim to promote large grid-connected wind-solar PV hybrid systems and develop the offshore wind energy sector.
Way Forward for the Wind Energy Sector
To continue advancing wind-based generation capacity, it’s crucial for governments to address existing barriers and challenges relating to planning and grid connections. Streamlining procedures for permits, land allocation, and grid connection projects should be a priority. Additionally, investment in grids must triple from current levels through to 2030. The report also advocates for increased public-private cooperation and a stronger international regulatory framework to handle the escalating competition for commodities and critical minerals.
