Global Wind Report 2023

GLOBAL WIND ENERGY COUNCIL
GWEC |GLOBAL WIND REPORT 2023

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4/02/11 15:40:22

Foreword 3
Executive summary 7
Wind energy: The coming renewables acceleration 13
Part One: A new energy market 17
Part Two: Challenges in the supply chain 23
Part Three: The risks and opportunities of regionalisation 33
Part Four: The IRA is set to turbocharge the US wind sector 41
Part Five: How Europe plans to rise to the challenge 47
Part Six: Will China continue to be the market leader? 51
Part Seven: How to achieve a just transition 57
Case studies 63
Focus on offshore wind 69
Markets to watch 83
Market Status 2022 91
Market Outlook 2023–2027 103
Appendix 1
1
1
Table of contents
Global Wind Energy Council
Rue de Commerce 31
1000 Brussels, Belgium
info@gwec.net
www.gwec.net
Lead Authors
Mark Hutchinson, Feng Zhao
Contributors and editing
Ben Backwell, Emerson Clarke, Esther Fang, Ramón
Fiestas, Jeanette Gitobu, Navneet Khinda, Reshmi
Ladwa, Anjali Lathigara,Wanliang Liang,Wangari
Muchiri, Thoa Nguyen, Liming Qiao, Marcela Ruas,
Martand Shardul, Thang Vinh Bui, Nadia Weekes,
Rebecca Williams
Additional contributions
Asociación Mexicana de Energía Eólica, Asociación
Costarricense de Productores de Energía, SER
Colombia – Asociación Energías Renovables,
Associação Brasileira de Energia Eólica e Novas
Tecnologias (ABEEólica), Camara Eólica Argentina,
Asociación Peruana de Energías Renovables – SPR,
Asociación Chilena de Energías Renovables y
Almacenamiento – ACERA, Japan Wind Power
Association, Renewable Energy Institute – Japan,
Korea Wind Energy Industry Association, China
Wind Energy Association, Developers of Renewable
Energy for AdvanceMent (DREAM) – Philippines,
Thailand Wind Energy Association, Mongolian
Renewable Energy Association, Indonesian
Renewable Energy Society (METI), Iran Renewable
Energy Association – IRWEA, Electricity Sector
Association of Kenya, South African Wind Energy
Association – SAWEA, Clean Energy Council
(Australia), American Clean Power, Canadian
Renewable Energy Association − CanREA,
WindEurope.
We received valuable review and commentary
for this report from
•Rina Bohle Zeller (Vestas)
•Dan Wetzel (IEA)
Front cover image courtesy of Vestas
Published
27 March 2023
Design
lemonbox
www.lemonbox.co.uk
GLOBAL WIND ENERGY COUNCIL
GWEC | GLOBAL WIND REPORT 2023 1

GWEC.NET
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Foreword
COP27 may have concluded with
the target of 1.5C in critical
condition, but the global
commitment to renewable energy
is stronger than ever. Meeting the
objectives of the Paris Agreement
calls for us to halve global
greenhouse gas emissions by
2030. That’s less than seven years
to replace swathes of high-
emission technologies with zero- or
low-carbon alternatives. In terms of
energy, this means leaving behind
a traditional system designed
around fossil fuels and installing a
new one – as fast as we can.
Aiming for 61% of total electricity
generation to come from
renewables by 2030, the IEA
estimates that renewable energy
capacity will have to triple, and that
most of this growth is to come from
wind and solar PV. 1
Scaling up renewable energy is
key to the energy transition.
Beyond the installation of
renewable power, this also means
installing transmission lines,
building grids and storage
solutions, and rolling out
technologies that enable system
flexibility.
Delivering to this demand requires
stronger supply chains across the
renewables industry – just at a time
when supply chains are threatened
by inflation, rising interest rates,
geopolitics and bottlenecks.
Investments in wind in 2022
decreased in Europe, the Americas,
the Middle East and Africa.The only
exception was the Asia-Pacific
region.This marks a paradox
during a period when various
crises are disrupting energy
security and climate deadlines are
drawing closer.Wind energy has
never been more needed: it builds
energy security, lowers the cost of
electricity and supports
decarbonisation. Last year’s
investment trends exemplify how
faster political action is now critical.
This year is crucial for
strengthening the supply chains
that bolster renewable energy.
Healthy industries require thriving
markets. At present, permitting and
grid bottlenecks are limiting
volumes to a crippling degree.
Profitable companies must be able
to set cost-covering prices. Policies
must seek a balance between
cost-competitive electricity, viable
projects and healthy supply chains.
In the current environment, prices
are often pushed to their minimum,
while technical and sustainability
requirements increase costs in
parallel. Renewables depend on a
skilled workforce, access to raw
materials, infrastructure and
low-cost financing.
Most market outlooks forecast an
imminent increase in demand for
renewables. Policymakers in major
renewable energy markets have
begun to address the current
challenges by supporting the
companies that will be driving the
renewables scale-up.
The USA’s Inflation Reduction Act,
Europe’s Green Deal Industrial Plan
and China’s Five-Year Plan are all
clear examples of increasing
political momentum.This welcome
news can bring concerning
underlying issues with it.The global
wind industry’s strength is its global
footprint. Opening a subsidy race in
support of loosely defined clean
energy transition technologies
while increasing protectionism
would come at a huge cost – to
industries and societies.
It is time for governments to realise
that serious climate change
mitigation and sustainable energy
security go hand in hand.
Governments must also accept that
a thriving renewables industry is
the first step to addressing both.
Decarbonisation is too big a
challenge for one country or
region alone to overcome: only by
working together can we unlock
the acceleration needed to achieve
a clean energy transition. GWEC
and its members have an
important role to play in
supporting sound policies,
collaboration and action. I look
forward to doing just that.
Word from the Chairman
Morten Dyrholm
Chairman, Global Wind Energy Council
1. https://www.iea.org/reports/world-energy-outlook-2022

The coming years will mark a
crucial transition period for the
global wind industry. Later this
year, wind energy will reach the
historic milestone of 1 TW of
installed capacity. It has taken us
around 40 years to get here.
However, the next TW will take
less than a decade. The energy
and climate policies now being
pursued by the world’s largest
economies in both the ‘West’ and
the ‘Global South’ point to a
whole new level of ambition and
support for wind energy and
renewables.
These policies are likely to take us
to 2 TW of installed wind energy
by the end of 2030. They are the
consequence of growing urgency
in the fight against dangerous
global heating; prolonged high
fossil fuel prices and the impact of
fossil fuel dependence on security;
and the success of our industry in
scaling up and establishing wind
as one of the most cost-competitive
and reliable power sources in the
world.
While the industry pushed through
the new level of 100 GW of annual
installations in 2021, the last few
years have not been without their
challenges. Many of the
manufacturers at the heart of the
industry have seen mounting
financial losses caused by ‘race to
the bottom’ pricing, as a result of
misguided government policies
around procurement and offtake
arrangements, exacerbated by
higher inflation and logistics costs.
Meanwhile, wind projects have
been delayed or stalled by
inadequate and inefficient
permitting and licensing rules,
from Denmark to India to Japan
and beyond.
This has created the bizarre
paradox of energy markets
rewarding fossil fuel companies
with record profits, while renewable
energy companies have struggled
to break even. As this report shows,
while companies have regrouped
to adapt to the new inflationary
pressures, the market has stalled,
and the industry installed only 77.6
GW in 2022.
All this has come at a time when
policymakers are racing to
address the energy and climate
crises by dramatically increasing
their targets for wind energy
across the world.
The situation, however, is about to
change and 2023 will mark the
start of a decisive turnaround.
Governments of all the major
industrialised nations have enacted
policies that will result in a
significant acceleration of
deployment.
In the US, the Inflation Reduction
Act has completely changed the
rule book for both onshore and
offshore wind, while in the EU,
policymakers are racing to
introduce new rules and
regulations to enable the huge
increase in deployment that the
REPowerEU plan foresees. In
China, unstoppable momentum
behind the energy transition
continues, and the end of
COVID-19 restrictions will see the
return of faster economic growth.
Large emerging market
economies such as Vietnam and
the Philippines are enacting new
plans for wind, the sleeping wind
power giant of India seems set to
pick up the pace, and Brazil will
continue to establish itself as a
wind energy powerhouse.
By 2024, GWEC expects onshore
wind to pass the 100 GW annual
installations mark, while offshore
wind will install more than 25 GW
in a single year for the first time in
2025, and installations will
accelerate rapidly after that.
Market conditions will change, as
countries and regions will have to
compete for badly needed
We must invest in supply chain
to build the next TW
Foreword
Ben Backwell
CEO, Global Wind Energy Council

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investment in their wind sectors:
who gets the investment will
depend on who has the most
attractive market conditions and
the most efficient regulators. For
power equipment – and this
includes key commodities such as
copper and rare earth elements
(REEs), power transmission
equipment, wind turbines and
offshore installation vessels –
market dynamics are likely to
change from buyers’ to sellers’
markets as supply chains struggle
to keep up with demand.
According to the data in this Global
Wind Report 2023, spare capacity
in the wind energy manufacturing
industry is likely to disappear by
2026. For some inputs and in some
regions, the squeeze will be felt
before then. Both Europe and the
US are facing the risk of supply
chain shortfalls, and these could
be worsened by policies aimed at
reshoring manufacturing away
from China and protecting local
industry and jobs.
As this report shows, while creating
more diversity and resilience in the
supply chain is an important and
necessary objective, decision
makers will have to design policy
very carefully to make sure that it
allows the fair exchange of essential
inputs for the energy transition,
fosters innovation and keeps costs
from rising unnecessarily.
In order to ensure that the wind
industry is able to meet the
expectations of policymakers and
society at large, it is essential that we
start investing in new capacity and
plant, and in training and skills, right
now. Otherwise, we run the risk that
we will not be able to deliver our
promises, policymakers will turn to
other, less efficient alternatives, and
society will fail in its climate goals.
This may sound counterintuitive in
an environment where companies
have found it difficult to keep their
businesses viable, but it is a
challenge we cannot ignore.
Thankfully, the sector’s leaders
can see the opportunity ahead,
and companies are already
investing – despite the highly
unfavourable conditions of the last
few years – in new manufacturing
facilities, from South Korea to the
US to Poland.
Much more is needed, and fast.
The wind industry will need to
forge new partnerships with
governments, cities, communities,
investors and customers in order to
enable the next era of growth.
Working together, we can put into
place the right policies, which will
allow trillions of dollars in
investments to flow and the
creation of millions of jobs.
As a starting point, we need to
leave the hesitancy of the past
behind and adopt a new mindset in
our industry. The wind industry is
no longer the hobby sector of forty
years ago. Our technology is
resilient and mature, and is poised
to play a unique role in the energy
transition. Now, in order to deliver
on the promises we have made, we
need a confident wind industry that
is capable of moving boldly ahead.
Foreword
The wind industry will need to forge new
partnerships with governments, cities, communities,
investors and customers in order to enable the
next era of growth

Foreword
In Brazil, we are living in a time of
great excitement and renewed
hope in our potential and in the
future. The new government of
President Luiz Inácio ‘Lula’ da Silva
is resuming work on key issues
that were abandoned in recent
years, such as the fight against
climate change, protection of the
environment – especially the
Amazon – and the reduction of
social inequalities. These are
matters dear to the wind sector,
which positively impacts society
from an environmental, social and
economic point of view.
The Brazilian wind power
revolution has been under way for
some years now. The industry
achieved 25.6 GW of installed
capacity in 2022, with wind energy
now holding a firm position as one
of Brazil’s strongest energy
generation sectors. In addition to
the continued growth of onshore
wind, we have great expectations
for the development of Brazilian
offshore wind.
IBAMA, the Brazilian Institute for
the Environment and Renewable
Natural Resources, has already
received project proposals for
more than 170 GW of offshore
wind energy. This number is
equivalent to practically the entire
Brazilian electricity matrix and
shows the extent of investor
appetite and the enormous
potential for offshore wind in
Brazilian waters.
There is not enough demand for
that amount of electricity, however.
That’s where green hydrogen
comes into play. Coupling this
technology with the enormous
potential for offshore wind could
consolidate Brazil’s standing as a
renewable energy superpower
building on its already advanced
wind energy supply chain and
wider industrial and maritime
capabilities.
The renewable resources available
in Brazil, especially its abundance
of quality wind both onshore and
offshore, are certainly unique in the
world. This opens a window of
opportunity for the production of
green hydrogen, which would have
the capacity not only to
revolutionise Brazil’s energy matrix
– already one of the most
renewable in the world – but also
to export green hydrogen to other
countries that may not be able to
produce all the renewable energy
they will need to meet their energy
transition goals.
Brazilian companies and state
governments have taken important
steps towards the creation of a
green hydrogen sector for the
country, including agreements to
invest more than 200 billion USD. In
January, EDP produced its first
green hydrogen molecule in Brazil
and Unigel will have its first
hydrogen and green ammonia
production plant in commercial
operation by the end of 2023. From
2050, according to the consultancy
Roland Berger, Brazil could derive
annual revenues of 150 billion BRL
from green hydrogen, of which 100
billion BRL would come from
exports alone.1
What we are seeing, therefore, is
an industry that is already here and
ready to grow rapidly, especially
considering the opportunities for
domestic demand. Currently, Brazil
uses fossil-fuel hydrogen in its
fertiliser, refining, chemical, food
and metallurgy industries.
Replacing this with green
hydrogen would allow
decarbonisation and net zero in
many Brazilian industry sectors to
become a reality.
We know this is a long road, but
we are also certain that we are on
the right track. The Brazilian wind
energy revolution is already here
for all to see – and will continue
to gain strength. It is just a matter
of time and dedicated work by
the government, investors,
companies and professionals in
the sector. Let’s all work together
to continue putting the wind in
Brazil’s sails.
Brazil’s wind power revolution
Elbia Gannoum
President of ABEEólica, Brazil’s
wind energy and new technologies
association, and GWEC Vice Chair
1. https://valorinternational.globo.com/business/
news/2023/01/22/bårazil-has-potential-to-be-largest-
producer-of-green-hydrogen-study-shows.ghtml

Transforming the supply chain
for the industry of the future
Christopher L. Mapes
Chairman, President and Chief Executive Officer
The Lincoln Electric Company
As the global wind industry focuses
on solving the supply chain
challenges ahead for the expansion
of offshore and onshore wind, there
are tremendous accomplishments
already achieved. The
transformation of steel into the key
components of the energy
transition is already well under way,
supported by record new
investment commitments.
From new steel plant capacity,
planned or already online, to pipe
mills, shipyards and regional
fabricators around the world, these
new industry investments are
driving one of the most rapid
global industrialisation periods we
have seen. The outcome of this
process will enable the world to
build and install turbines, towers
and foundations (fixed-bottom and
floating) of immense size, never
before realised.
With the race to wind turbines of 20+
MW accelerating, the offshore wind
supply chain of the future will need to
produce at elevated levels, higher
than ever before. However, it is clear
that the present levels of investment
commitment across the entire supply
chain still fall well short of what is
required for the global industry to hit
installed capacity targets.
The supply chain of the future
needs rapid expansion – in line
with the ambitions of its main
stakeholders. This is why GWEC’s
Global Wind Report 2023 is even
more crucial, highlighting a
number of key actions necessary
in both the short and long term.
While there are many pieces of
encouraging news across the
global supply chain, there are also
several practical challenges to
overcome if we are to accelerate
capacity to meet the installed
targets forecast around the world.
As a key global supplier who
supports the entire fabrication
supply chain of assets and
infrastructure, Lincoln Electric sees
the global industry through a
unique lens. Key to unlocking the
full capacity of the supply chain is
innovation, together with new
installation methods, designs and
advanced technology that can
drive the profitable success of the
industry. Additionally, the
continuous development of a highly
skilled workforce will be critical, as
well as the implementation of
higher levels of automation
solutions, which can reduce project
hours and overall costs.
Today’s industry leaders know that
new technologies for steel
transformation will play a critical
role in profitability, particularly in
welding and cutting, which
continues to be at the core of the
expanding global wind industry.
Lincoln Electric and other critical
supply chain businesses are
leveraging decades of industry
expertise and experience to
innovate and solve these critical
challenges through two key
drivers: technology and higher
involvement in workforce training
and development. Together, these
critical initiatives will advance the
growing global needs for a highly
skilled workforce that can support
the ambitions of industry and
countries around the world.
Building on earlier success in
offshore wind across Europe – and
now the rapid expansion in Asia
and the Americas – the future of
the wind industry depends on the
combined efforts of many. The
industry needs continued support
from governments and private
investment around the world for
further acceleration and
expansion of the supply chain. By
aligning these resources with a
growing role for wind as a key
part of the energy transition, the
industry will thrive.
Sponsor
The supply chain needs rapid
expansion – in line with the
ambitions of stakeholders
GWEC.NET
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GWEC.NET
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Wind in 2022
Nearly 78 GW of wind power
capacity was added last year, the
lowest level in the past three
years but still the third highest
year in history. This was achieved
despite a challenging economic
environment and a disrupted
global supply chain,
compounded by global health
and energy crises.
Market status
Globally, 77.6 GW of new wind
power capacity was connected to
power grids in 2022, bringing total
installed wind capacity to 906 GW,
a year-on-year (YoY) growth of 9%.
The onshore wind market added
68.8 GW worldwide last year, with
China contributing 52%. Additions
were 5% lower than the previous
year. The slowdown in Latin
America, Africa & the Middle East
is partly responsible for the
decline, but the primary reason is
falling installations in the US.
Despite finishing the year with a
strong final quarter, the US wind
industry commissioned only 8.6
GW of onshore wind capacity in
2022, due in part to supply chain
constraints and grid
interconnection issues.
Thanks to record installations in
Sweden, Finland and Poland – and
recovering installations in Germany
– Europe performed well in a
volatile 2022, adding a record 16.7
GW of onshore wind capacity and
bringing its market share up to
24%. Onshore wind additions in
North America last year fell by 28%
while new additions in Asia-Pacific
(APAC) remained constant, but the
three regions combined still made
up 92% of global onshore wind
installations in 2022.
8.8 GW of new offshore wind was
fed into the grid last year, bringing
total global offshore wind capacity
to 64.3 GW by the end of 2022.
New additions were 58% lower
than the bumper year of 2021 but
still made 2022 the second highest
year in history for offshore wind
installations.
China continued to lead global
offshore wind development,
although its new installations
dropped to 5 GW from 21 GW in
2021 – a record year driven by
the end of the feed-in tariff (FiT).
Two other markets reported new
offshore wind installations in APAC
last year: Taiwan (1,175 MW) and
Japan (84 MW). No intertidal
(nearshore) wind projects
achieved commercial operation in
Vietnam in 2022, due to the
ceiling price to be used by
Vietnam Electricity (EVN) to
negotiate PPAs with investors for
their renewable projects missing
until January 2023.
Europe connected the remaining
2.5 GW of capacity in 2022, with
France and Italy each
commissioning their first
commercial offshore wind projects.
Despite the rate of installations last
year being the lowest since 2016,
Europe’s total offshore wind
capacity reached 30 GW, 46% of
which is from the UK.
With total installed offshore wind
capacity reaching 34 GW in APAC,
in 2022 Europe relinquished its title
as the world’s largest offshore wind
market. Nevertheless, Europe
continues to lead the way with
Feng Zhao
Head of Strategy and
Market Intelligence, GWEC
The Data: 2022 was the wind industry’s
third-best year

Wind in 2022
floating wind. Norway
commissioned 60 MW of floating
wind capacity last year, bringing
the region’s total installations to 171
MW, equal to 91% of global
installations.
Market outlook
The unprecedented twin
challenges of ensuring secure and
affordable energy supplies and
meeting climate targets have
propelled wind power
development into an extraordinary
new phase of ever faster growth.
After a challenging year, the global
wind market is ready to bounce
back in 2023, exceeding 100 GW
for the first time.
With a double-digit growth rate of
15%, the mid-term outlook for wind
energy looks very positive. GWEC
Market Intelligence expects that
680 GW of new capacity will be
added in the next five years. This
equals more than 136 GW of new
installations per year until 2027.We
believe there are five pillars that
will underpin this level of success
in the next five years:
l
Europe’s renewed urgency to
replace fossil fuels with
renewables to achieve energy
security in the aftermath of the
Russian invasion of Ukraine.
l
A strong uplift for renewable
energy in the US over the next
ten years, primarily driven by the
Inflation Reduction Act (IRA).
l
China’s commitment to further
expanding the role of
renewables in its energy mix,
aiming for renewable energy to
contribute more than 80% of total
new electricity consumption by
the end of the 14th Five-Year
Plan (2021-2025).
l
Governments fully waking up to
the opportunities that offshore
wind can provide, making
offshore wind truly global and
increasing ambition in mature
and developing markets.
l
Strong growth in large emerging
markets both onshore and offshore
from the middle of this decade.
The CAGR for onshore wind in the
next five years is 12%. Expected
average annual installations are
110 GW, with a total of 550 GW
likely to be built in 2023–2027.
Growth in China, Europe and the
US will be the backbone of global
onshore wind development in the
next five years. Altogether, they are
expected to make up more than
80% of total additional capacity in
2023–2027.
The global offshore wind market is
expected to grow from 8.8 GW in
2022 to 35.5 GW in 2027, bringing
its share of total new global
installations from today’s 11% to
23% by 2027. In total, 130 GW of
offshore wind is expected to be
added worldwide in 2023-2027,
with expected average annual
installations of nearly 26 GW.
Beyond 2027, we expect the growth
momentum to continue as global
commitments to net zero, coupled
with growing energy security
concerns, have already brought the
urgency of deploying renewables
to the top of the political agenda.
Compared with the 2030 global
outlook released alongside last
year’s Global Wind Report, GWEC
Market Intelligence has increased
its forecast for total wind power
capacity additions for 2023–2030
by 143 GW (YoY growth of 13%).
The revised growth rate will only
achieve 68% of the wind power
capacity required by 2030 to stay
on track for a net zero/1.5C
pathway. Nevertheless, GWEC
believes that the milestone of a
second TW is likely to be passed
before the end of 2030 – provided
governments implement new
policy solutions to ensure that the
global supply chain can meet
increasing demand from both
established and emerging markets
– in addition to addressing
challenges such as permitting and
market design.
The twin challenges of secure energy supplies and
climate targets will propel wind power into a new
phase of extraordinary growth

GWEC.NET
10
Policy summary
By mid-2023 GWEC anticipates
wind energy to achieve the highly
symbolic milestone of 1 TW in
operation. And the 2 TW mark is
expected to arrive by 2030,
closing a decade of tumultuous
acceleration.
The sector has changed beyond
recognition over the past four
decades. Long gone are the days
of wind installation clusters in a
handful of European countries and
a few US states.Wind power has a
growing presence in tens of
countries worldwide. The surge of
offshore wind and innovative
technologies such as floating
foundations promise to deliver
large amounts of wind energy in
locations where its deployment
would have been unimaginable
until very recently.
The stakes could hardly be higher
for wind energy as the world
strives to emerge from the
‘polycrisis’ of post-pandemic
recovery, inflationary pressures, a
war in Europe and growing climate
impacts. But all the signs point to a
sharp turnaround this decade, and
it is starting now.
A sluggish 2022 saw only 77.6 GW
of additional wind capacity
installed globally – 17% lower than
the previous year but still the third
highest year in history for
additions. Offshore additions, at 8.8
GW, were less than half the 21 GW
clocked in 2021, and yet the
second highest volume ever.
Despite the relatively positive wind
installation numbers, 2022 was the
year when a perfect storm of ‘race
to the bottom’ pricing caused by
misguided government policies,
higher logistics costs and project
delays due to inadequate
permitting rules created the
bizarre paradox of energy markets
rewarding fossil fuel companies
with record profits, while
renewable energy companies
struggled to break even.
Change has altered the dynamics
of the wind industry too. From an
early obsession with
demonstrating reliability to an
unrelenting drive to cut costs, the
wind industry now needs a laser-
sharp focus on ensuring that it can
deliver the ambitious installation
targets required of it.
Renewables will dominate
installations
Under all credible scenarios,
renewable energies will dominate
installations over the coming years.
The IEA forecasts that nearly all of
the additional electricity generated
between 2022 and 2025 will come
from renewable energy sources.
Alongside solar, wind will remain a
leading source of renewable
power.
By 2024, GWEC expects onshore
wind to pass the 100 GW annual
installations mark, while offshore
wind will install more than 25 GW in
a single year for the first time in
2025. Installations will accelerate
rapidly after that, driven by most
countries’ ambitious green energy
and climate targets. GWEC forecasts
that 680 GW of wind capacity will be
installed globally by 2027, of which
130 GW will be offshore.
The Story: the wind industry gears up
for the coming acceleration

Policy summary
As our heat map (see page 82)
shows, there are still tens of
countries where wind power
development is being held back
by regressive policies or
ineffective processes. Increasingly,
however, governments are eyeing
up the vast opportunities that
facilitating this sector opens up in
terms of industrial development,
skilled jobs and socioeconomic
returns, as well as environmental
benefits.
Investing to boost wind
development
Wind energy has established its
credentials as one of the most
efficient tools for decarbonising
power systems. Failing to deploy
wind fast enough risks increasing
costs through greater exposure to
fossil fuel volatility, geopolitical
pressure and higher carbon
emissions. Socially, wind power has
the potential to benefit
communities by creating millions
of skilled jobs around the world.
Economically, it can act as a
catalyst for trillions of dollars of
investment.
Heavyweights such as the US and
the EU have ramped up
government support for wind
energy. The Biden administration’s
Inflation Reduction Act (IRA) is
already mobilising massive
investment in renewable
generation, decarbonised
transport, energy storage and
improved grid connections. In
Europe, the REPowerEU
programme seeks to wean the
continent off Russian gas while
removing obstacles to green
energy deployment. And approval
of China’s 14th Five-Year Plan ,
covering the 2021–2025 period,
turbocharges innovation-driven
low-carbon development, with
GWEC estimating annual wind
installations of 60–65 GW per year
for onshore and 15 GW for
offshore in the second half of this
decade.
While these policies are providing
a welcome boost to local industry
and promising long-overdue action
to reduce some of the complex
rules associated with wind energy
development, they could also
threaten the sector’s ability to rise
to the acceleration challenge.
Growing demand for equipment
and the key commodities that are
required to produce it will place
significant pressure on supply
chains. It is essential that
policymakers approach
procurement with a more holistic
perspective that prioritises
economic development and job
creation over a narrow focus on
achieving the lowest possible
price.
By adopting this high-level
mindset, governments will allow
wind power original equipment
manufacturers (OEMs), developers,
shipping companies and other
actors in the supply chain to invest,
ensuring an optimal balance
between supply and demand, and
delivering benefits for all.
Facing up to the size of the
challenge
Gearing up to deploy huge
volumes of wind power capacity is
a far from straightforward task.
Adding 1 TW in seven years, when
it took around 40 years to install the
first TW, is no mean feat.
Following a difficult patch of
retrenchment, the wind energy
manufacturing industry is now
facing the prospect of a rapid
upturn. Spare capacity is very
limited, and likely to disappear by
2026 unless urgent action is taken
to invest in the supply chain.
Our analysis in Part 2 shows that 163
GW of nacelle production capacity
is available worldwide, which is
likely to meet projected global
demand up to 2027. But the picture
is less rosy for offshore wind.
Starting in 2026, Europe’s existing
offshore turbine nacelle assembly
capacity will no longer be able to
support growth outside of Europe,
and by 2030 it will have to double
from current levels to meet
European demand alone.
Elsewhere, nacelle bottlenecks look
likely in Asia (excluding China) and
in the Americas, especially once the
pipeline of Brazilian projects starts
being rolled out.
Shortages are expected to emerge
in the second half of this decade for
key components such as blades and
generators. Gearbox manufacturing
capacity is well positioned to
support growth up to 2027, but a
concentrated supply chain and
regionalised sourcing strategies
look certain to create bottlenecks.
China dominates the global supply
chain for other crucial components
Spare capacity is limited and will
likely disappear by 2026 unless
urgent investment is made in the
supply chain

GWEC.NET
12
Policy summary
such as castings, forgings, slewing
bearings, towers and flanges, with
a market share of more than 70%.
Vessels used in offshore
installations are expected to be in
sufficient supply in China, but
Europe could see shortages
towards the end of the decade,
unless investments are made
before 2027. And the US, with its
Jones Act restrictions, will certainly
struggle to meet the Biden
Administration’s target of 30 GW of
offshore wind by 2030 unless it
acts to build new vessels.
In sum, both Europe and the US
are facing the risk of supply chain
shortfalls as soon as 2026,
particularly if they follow through
with some of the ‘reshoring’
policies that several countries and
regions are rolling out to
strengthen energy resilience and
boost local industry.
Supply chain pressures will alter
market dynamics
Paradoxically, just as renewable
energy proves itself as the most
cost-effective form of energy and
the one best insulated from the
vagaries of geopolitical pressures,
wind energy runs the risk of seeing
its progress thwarted by the
practical implications of untapping
its immense growth potential.
As countries and regions compete
for investment, the winners will be
those with the most attractive market
conditions and the most effective
regulation. Policymakers must tread
the narrow path that enables an
adequate level of trade to ensure the
energy transition is not delayed
while boosting opportunities for
their domestic supply chains.
Efforts to boost energy security
and strengthen the local economy
have led some countries to reach
beyond manufacturing to achieve
local supply of critical inputs for
their industries, including steel
products and raw materials such
as rare earth elements (REEs). This
has the potential to severely limit
the industry’s capability to upscale.
When considering the localisation
or reshoring of their energy sector,
governments have choices: they
can use incentives or preferential
treatment for domestic suppliers or
reserve the procurement of certain
goods or services for them.
GWEC advises against
prescriptive localisation
requirements or restrictive trade
practices, which could lead to
price increases and disruption. It
argues instead for flexibility that
can build on national and
regional competitive advantages,
giving OEMs and the supply
chain more flexibility in
optimising their production. An
incentive-based approach will
also give the wind industry the
confidence to overcome recent
challenges and begin to scale up
for the next phase of global
growth.
The scale of the investment and
production needed to achieve the
energy transition will require
continued global and regional
collaboration and the scaling up of
investment everywhere.
Policymakers must come together
to design mechanisms that make
the relevant inputs for the energy
transition freely available around
the world.
Policymakers have the power to
avoid the crippling bottlenecks that
are likely to arise if supply chains
do not rise to the challenge of the
growing demand for equipment.
But they must ensure they engage
in early and open dialogue with
industry to ensure that policy goals
and industry action are aligned. If
designed properly and
comprehensively, policies
designed to enable the scaling up
of the supply chain and its
diversification represent a huge
opportunity for the world.
For the wind industry to meet the
expectations of policymakers and
society at large, it is essential that
investment starts right now in new
industrial capacity, and in training
and skills. In the absence of such
impetus, the industry runs the risk
of falling short of what is required
to deliver the necessary capacity,
leading policymakers to turn to
less efficient alternatives, and
ultimately causing society to miss
its climate targets.

WIND ENERGY: THE COMING ACCELERATION

GWEC.NET
14
The coming renewables acceleration
The prolonged period of high
energy prices the world
experienced in the aftermath of the
COVID-19 pandemic, sharply
exacerbated by the Russian
invasion of Ukraine, has exposed the
fact that we are suffering a deep
energy crisis.This is a consequence
of a patchy and delayed energy
transition, which has left energy
markets vulnerable to volatile fossil
fuel supply – much of which is
driven by political agendas and
anti-competitive practices.
As well as exposing consumers
and industry to high energy prices,
the crisis has been a significant
contributor to the return of inflation
as the major challenge for the
world’s economy. Meanwhile, the
impacts of accelerated global
heating are becoming ever clearer
at the same time as countries
continue to delay taking the actions
needed to achieve the emissions
trajectory outlined in the Paris
Agreement.
However, the current ‘polycrisis’
has not gone unanswered by
society in general and
policymakers in particular. The
drive towards lowering emissions
and prioritising sustainability
continues to gather momentum.
The past year has seen
governments around the world
take unprecedented steps to
speed up the energy transition and
wean their economies off their
dependence on fossil fuels.
Whether through the Inflation
Reduction Act in the US, the
REPowerEU program in the EU or
enhanced national plans, the policy
environment has evolved quickly
over the past 12 months. This in
turn has led to countries and
regions setting new, highly
ambitious targets for renewable
energy and for the phaseout of
fossil-based technologies in
generation, transport and industry.
The leading intergovernmental
energy agencies agree that
renewable energy – and the two
leading technologies of wind and
solar especially – will dominate
electricity demand growth in the
coming period. According to the
International Energy Agency,
renewable energy will provide 98%
of the 2,518 TWh of electricity
generation to be added between
2022 and 2025.1
GWEC expects 680 GW of wind
capacity to be added globally
between 2023 and 2027, of which
130 GW will be offshore. Onshore
wind in China will continue to lead
installations with 300 GW, followed
by Europe with nearly 100 GW.
Offshore wind will play an
increasingly large role with
projected global additions of more
than 60 GW between 2023 and
2025, and 68 GW in 2026–2027.
Wind energy is expected to achieve
the milestone of 1 TW of installed
capacity by the middle of this year.
In a recent report, BloombergNEF
(BNEF) forecast that, having taken 33
years to reach 1 TW, wind will deliver
close to another TW by 2030.2
1. https://www.iea.org/reports/electricity-market-
report-2023
2. https://about.bnef.com/new-energy-outlook/
Onshore
Offshore
36
2024e
2022 2023e 2026e 2027e
2025e
78
115
125
135
150
157
32
18
26
18
9
122
117
109
106
97
69
CAGR 15%
New installations outlook 2022–2026 (GW)
Source: GWEC, 2023

A new geopolitical era
Political conditions that have made
wind deployment difficult in many
countries are beginning to shift, as
our heat map illustrates. There are
only a few places now where wind
power is neither in existence nor
planned.
Under the leadership of President
Luis Inácio ‘Lula’ da Silva, Brazil is
looking at wind energy as a
vehicle for achieving climate goals
while boosting economic growth.
As it continues to move away from
regulated auctions and towards
corporate power purchase
agreements, the Brazilian wind
energy sector gains resilience and
prepares for a very bright future.
On the other side of the globe,
India is targeting wind capacity
additions of more than 60 GW
onshore and nearly 40 GW
offshore by 2030. It is also looking
to seize supply chain opportunities,
particularly by capitalising on the
role of micro, small and medium
enterprises (MSMEs) in the Indian
wind manufacturing sector.
After a spell of virulent anti-wind
rhetoric under the Trump
administration – albeit with continued
economics-led growth of the sector
– President Biden has enacted a
dramatic change of direction, both
through restating the USA’s climate
leadership in international forums,
and through the Inflation Reduction
Act (IRA).This landmark piece of
legislation offers funding,
programmes and incentives for
accelerating the transition to a clean
energy economy across multiple
sectors.The prospects for offshore
wind, in particular, are very exciting.
The EU, for its part, is laying out a
multi-pronged approach to boost
European industry while achieving
energy and climate goals.
Renewable energy projects could
be given priority permitting in
special ‘go-to’ areas under new
provisions being considered in the
upcoming revision to the
Renewable Energy Directive, while
the REPowerEU package offers
renewables a 20 billion EUR
funding pot.
India
● Annual target of 8 GW onshore wind
tender every year between 2023 and
2030 based on a single-stage
two-envelope bid system.
● MNRE published a strategy paper
outlining a tender trajectory of 37 GW of
offshore wind by 2030
● Indian government and industry seizing
supply chain opportunities
Egypt
● 42% renewable energy by 2035 with
support of Green Corridor Initiative
● Installations projected to rise from 1.7 GW
to 8 GW by 2030
● Multi-GW scale projects in early stages of
development
China
● 50 GW of planned installations during the
14th Five-Year Period (2021–2025)
● Projected annual installations of
70–80 GW until 2030
● Local industry ready to support annual
installations of approximately 15 GW
Australia
● New national government supportive of onshore
and offshore wind development
● Offshore Electricity Infrastructure Regulations
released
● Announced areas for offshore wind in
Gippsland (Victoria)
Brazil
● Cross-party support for wind
energy as a driver of economic
growth and job creation
● ABEEólica expects annual additions
in the region of 3 GW for onshore
wind over the next decade
● Offshore wind and green hydrogen
expected as additional drivers for
wind energy development
South Korea
● Wind energy target increase from 2 to 34%, as
part of a 30% renewables target by 2036
● Projected 34 GW of installed wind energy
by 2036
● New government implementing a 'One Stop
Shop Bill' to fast-track project development
Strong installed capacity increase, new ambitious targets and/or policy improvement
Adequate targets and policies, but not matched by expected progress
Lack of progress or regression
Tunisia
Offshore wind by 2050
30 GW
60 GW
300 GW
17 GW
28 GW
9 GW
15 GW
Wind energy by 2030
Victoria - offshore
wind by 2040
No federal targets
Wind energy by 2030
45%
Wind energy by 2030
5%
Offshore wind over
2026–2035 (1.5 GW/yr)
10 GW
Offshore wind targets of 10 GW
by 2030 and 30–45GW by 2040
Renewable energy by 2030
100%
Renewable
power by
2030
100%
Renewable
power by
2030
Mongolia
Australia
Indonesia
Thailand
India
China
Kazakhstan
Uzbekistan
Saudi
Arabia
Egypt
Algeria
Mauritania
Brazil
Argentina
Chile
Peru
Colombia
Costa Rica
Mexico
United States
Canada
Nigeria
Morocco
EU
UK
Senegal
South Africa
Ethiopia
Kenya
Tanzania
Vietnam
Philippines
Taiwan
South
Korea
Japan
Uruguay
Ghana
Nambia
Mozambique
Policy heat map

GWEC.NET
16
Additionally, the EU is looking to
introduce legislation that would
simplify and fast-track permitting
procedures for climate-neutral
industrial infrastructure, with the
goal of boosting Europe’s key
green industries and their full
value chains. Efforts are also being
made to reduce dependence on
non-EU sources of raw materials
and rare earth elements (REEs).
Responding to burgeoning
demand
Demand for wind energy continues
to grow and expand. The trend
towards corporate power purchase
agreements shows no sign of
slowing down, and large
companies from outside the
energy industry are increasingly
keen to invest in wind
development.
BloombergNEF estimates that
offshore wind financing activity
will hit new records in 20233
, with
more than 30 GW of new projects
getting the go-ahead, over half of
which will be outside China.
Floating offshore technology is
making steady progress and will
open up previously untapped
markets.
However, the promise of massive
expansion risks colliding with the
reality of delivering turbines on
land and in the water. The industry
is emerging from several difficult
years, during which turbine
manufacturers have suffered
financial losses and policymakers
have often failed to provide the
optimal conditions for fast and
efficient market development and
the necessary grid buildout.
While technological advances are
happening across the sector – from
China’s continued lead in upsizing
turbine components, to global
efforts to improve the circularity of
traditionally difficult-to-recycle
epoxy-based turbine blades4
–
there is a danger that an industry
scarred by years of financial losses
may retreat into caution and
protectionism. This would be the
worst possible scenario both for
the wind industry and the energy
transition – as global supply
diversification has supported the
reduction of wind’s LCOE.
As gigawatt-level projects kick off
in new and traditional wind
markets across the globe, GWEC
anticipates a flurry of orders for
turbine manufacturers everywhere,
and pressure on all elements of the
supply chain as a result. It is
essential that the industry gears up
to respond to this challenge by
thinking strategically about the
road ahead and setting itself up to
deliver on its ambition, supported
by adequate policies.
A turning point for wind
Having achieved impressive
learnings and economies of scale
over the past two decades, wind is
now a mature sector which, like
more traditional energy sources,
reacts to external factors such as
commodity prices, interest rates
and political support – rather than
its own internal dynamics.
No longer the new kid on the energy
block, the wind sector is at a turning
point – facing up to a host of new
challenges while looking to deploy
massive amounts of additional
capacity in an ever-growing number
of countries. Such a huge rise in
wind power development can only
materialise if governments play their
part, through supportive and stable
market conditions, in allowing the
wind industry to scale up to the
ambitious targets it is expected to
deliver.
In an increasingly interconnected
world, the wind sector must prove
that it can continue to innovate,
collaborate and integrate. From
the role of women and minorities
in the industry to the wide-
ranging challenge of
sustainability, GWEC is
determined to facilitate
connections between the many
stakeholders the sector affects.
Having long established its
credentials as a reliable, effective,
efficient and cost-competitive
technology, the wind industry
now needs the right conditions to
step up to the level that is
required of it to fully deliver on its
promise of cleaner and cheaper
energy for all.
3. https://about.bnef.com/new-energy-outlook/
4. https://www.vestas.com/en/media/company-news/2023/
vestas-unveils-circularity-solution-to-end-landfill-
for-c3710818

GWEC.NET
18
Part 1: A new energy market
In 2022, the world saw many of its
long-established paradigms
shattered by a number of deeply
transformative events. Inflation
reached levels not seen since the
massive disruptions of the 1970s –
driven at both times in large part by
commodity price increases.The
unprovoked attack on Ukraine by
Russia laid bare the world’s
dependence on fossil fuels – and the
energy insecurity that comes with it.
As Russia is the world’s second
largest gas producer, this
dependence came at a steep price
for gas-importing countries, causing
surges in the prices of everything –
from fertilisers to heating and power
– and causing low-income countries
to suffer the most.
The global response has been to
focus on energy security and
resilience. Governments
introduced measures to make
energy affordable by utilising all
available energy sources,
including coal, gas and nuclear,
and by committing to developing
more renewables in the latter part
of the decade.
The short-term focus on
affordability and the subsequent
increased use of fossil fuels led to
an increase in global carbon
emissions1
, even with nearly 80
GW of wind power and more than
200 GW of solar capacity
installed2
.What this tells us is that
installing 300 GW of renewables in
one year is not enough to curb a
rise in carbon emissions.
A tipping point for wind energy
Amid the turmoil of 2022, it is clear
that we have reached a tipping point
for renewable energy in general
and for wind power in particular.
In Europe, the REPowerEU3
programme has committed the
bloc to weaning the continent off
Russian gas by 2030 (or sooner).
The policy also seeks to remove
bottlenecks to permitting and other
hindrances to the deployment of
renewable energy projects.
The US passed the Inflation
Reduction Act (IRA)4
, transforming
the way the country approaches
renewables, decarbonised transport,
energy storage, the electricity grid
and energy efficiency.The act has
already accelerated large amounts
of investment.
Approval of China’s 14th Five-Year
Plan5
, covering the 2021–2025
period, paves the way for innovation-
driven, sustainable and low-carbon
development.The plan also aims to
reduce the carbon intensity of the
Chinese economy and targets peak
CO2 emissions before 2030.
A new energy market
2021
28,000
28,500
29,000
29,500
30,000
30,500
31,000
31,500
2025
2022 Coal Oil Gas Nuclear Renewables
Projected changes in global electricity generation (TWh) by source
Source: IEA, 2023
1. https://www.carbonbrief.org/analysis-global-co2-emissions-from-fossil-fuels-hit-record-high-in-2022/
2. https://renewablesnow.com/news/global-solar-pv-additions-to-top-200-gw-in-2022-ihs-markit-761554/
3. https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1511
4. https://www.epa.gov/green-power-markets/inflation-reduction-act
5. https://www.adb.org/publications/14th-five-year-plan-high-quality-development-prc

Significantly more wind will be
required to achieve those goals.
Substantiating this trend, the
International Energy Agency
(IEA)’s Electricity Market Report
2023 sees renewable energy
sources supplying pretty much the
totality of the additional electricity
generated between 2022 and
2025.6
In its Renewables 2022 report – the
agency’s primary analysis of the
renewable energy sector – the IEA
forecasts capacity additions
reaching record highs through
20277
, led by solar and wind. It
expects annual additions to range
from 350 GW in the main scenario
to 400 GW in the accelerated case.
What does a wind energy
boom mean?
Wind power is not just growing
bigger, it is also spreading more
widely. Beyond the current world
leaders, many other countries are
also refocusing on renewables –
driven both by the insecurity of
relying on fossil fuels and the
desire to remain economically
competitive. Economic drivers are
becoming increasingly important
as companies globally commit to
environmental, social and
governance (ESG) goals that
require them and their suppliers to
decarbonise.
This is a mega-trend to watch as
GWEC believes the demand side
will become much more vocal in
its desire to see more renewables
come online to help them and their
suppliers meet their
decarbonisation targets. An
example of this is the Asia Clean
Energy Coalition8
– launched by
GWEC, the World Resources
Institute and The Climate Group
and including Google, Apple,
Samsung, Nike and many other
large corporates with significant
commitments to decarbonise.
But while these trends and
commitments are very positive for
renewables in general and wind
energy in particular, there remains
much to do to fully enable the
renewables sector to deliver the
ambitious deployment levels
required to achieve these wider
ESG goals.
Take, for example, the supply of
wind turbines. Based on the
0
50
100
150
200
250
300
2
0
2
1
2
0
2
2
2
0
2
0
2
0
1
9
2
0
1
8
2
0
1
7
2
0
1
6
2
0
0
9
2
0
0
8
2
0
0
7
2
0
0
6
2
0
0
5
2
0
0
3
2
0
0
4
2
0
1
5
2
0
1
4
2
0
1
3
2
0
1
2
2
0
1
1
2
0
1
0
2016
=
100
Commodity Price Index
0
1
2
3
4
5
6
7
2
0
2
1
2
0
2
2
2
0
2
0
2
0
1
9
2
0
1
8
2
0
1
7
2
0
1
6
2
0
0
9
2
0
0
8
2
0
0
7
2
0
0
6
2
0
0
5
2
0
0
3
2
0
0
2
2
0
0
4
2
0
1
5
2
0
1
4
2
0
1
3
2
0
1
2
2
0
1
1
2
0
1
0
Historical London Interbank Offered Rate (LIBOR, %)
6. https://www.iea.org/reports/electricity-market-report-2023
7. https://www.iea.org/reports/renewables-2022
8. https://gwec.net/acec-launches-to-rapidly-drive-corporate-clean-energy-procurement-in-asia/
Source: IMF
, 2023
Source: IMF
, 2023

GWEC.NET
20
GWEC Market Intelligence
database of global wind supply
side, the industry had a potential
turbine production capability of
120 GW in 2020. Since 105 GW
of turbines were delivered in
2021, that leaves approximately
10% of spare capacity. However,
because of low profitability in
2021 and 2022, many turbine
manufacturers have cut back on
staff and closed some production
facilities.
As the industry starts to grow
again, will turbine manufacturers
have enough visibility on turbine
demand to rapidly ramp up
production capacity?
Another significant recent trend is
the growing China–US/EU tension
on trade and other policies,
possibly marking a move away
from globalisation in an attempt to
shore up regional economies and
security of supply.What are the
implications for wind energy,
especially with China being such a
dominant producer across the
renewables supply chain?
These are some of the questions
we will look to address in detail in
later chapters of this report. At the
high level, it seems inevitable that
a significant, global ramping up of
production capacity will be
needed to meet fast-growing
demand.
All energy costs are on the up
Following the massive disruptions to
supply chains caused by the
COVID-19 pandemic, energy
demand bounced back as
economies reopened. Stretched
supply chains tried to balance
supply with demand, while shipping
and logistics bottlenecks added to
the strain. Prices for a range of
goods, from cars and wind turbines
to washing machines and food, rose
dramatically.
Meanwhile, as inflation soared,
central banks became concerned
about its impacts on the economy
and embarked on a series of
interest rate rises, leading the
cost of capital to also increase.
Higher cost of capital leads to
increased costs for all
investments.
The historically high commodity
prices seen in the last two years, and
the upturn in the cost of capital seen
in 2022 as central banks tightened
monetary policy, has impacted all
energy sources worldwide.
From 2010 to 2020, Newcastle coal
futures, the benchmark for the top
0
10
20
30
40
50
60
2
0
2
1
2
0
2
2
2
0
2
0
2
0
1
9
2
0
1
8
2
0
1
7
2
0
1
6
2
0
1
5
2
0
1
4
2
0
1
3
LNG spot prices in Asia (USD/mmbtu)
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
200
2019 2020 2021 2022 2023 2024
400
Indexed
electricty
price
(Q1
2019
-=100)
600
800
1000
1200
European index
India
Nordics
Australia
Japan
United States
Spain
United Kingdom
France
Germany
Average quarterly wholesale electricity prices
Source: IEA, 2023
Source: Federal Reserve, 2023

coal-consuming region of Asia,
ranged between $50/tonne and
$120/tonne9
. After sharp increases
in 2021, they averaged $350/tonne
in 2022, making the cost of coal-
fired power generation
substantially higher than the cost
of wind in almost every country.
And that is before the cost of
carbon or its abatement is even
taken into account.
Over the past two years, prices
for Asian liquified natural gas
(LNG) have spiked against 2020
levels. While most LNG-importing
countries have long-term
contracts in place, they are
unlikely to cover 100% of
demand, leaving countries
exposed to importing spot
cargoes. This has come at a very
high financial cost, particularly in
the past year. And because LNG
markets are global the price
impacts are felt globally.
These trends contributed to a
historic increase in wholesale
electricity prices. Average
quarterly wholesale electricity
prices spiked in much of the world
through the end of last year, and
while the IEA projects prices to
drop in 2023, the projections are
not close to where they have been
in previous years.
Equipment manufacturing for
gas-fired and coal-fired generation
– as for wind and solar generation
– has benefited from the efficiency
improvements achieved over the
decades. But with high inflation
and massive disruptions to global
supply chains, coupled with higher
expenditure in shipping and
logistics, the capital cost (CAPEX)
of electricity generation for all
technologies has risen.
Wind has achieved significant
cost reductions over the last 20
years and the wind industry is
now considered fairly mature,
especially onshore wind.
Offshore wind is newer but,
having been commercial for at
least 15 years, it is also reaching
maturity. This means that the
dramatic price reductions that we
have seen historically are likely
to slow and future cost
fluctuations in the cost of wind
are likely to reflect the underlying
cost of capital, commodity costs
(steel, copper), and logistics
costs, as noted above.
For example, the cost per kilowatt
(kW) for a gas-fired turbine, a
mature technology, has been
roughly 1,000 USD/kW for the last
20 years (+/-30%) with the
variation caused by the usual
movements in supply and demand,
and particularly by the cost of
materials such as steel and
copper.10
There is no reason to
think that wind, as it matures, will
act differently.
Relative costs of wind power
remain low
The cost profile of electricity
generated from wind and solar
energy versus electricity
generation powered by traditional
fossil fuels appears very favourable
– it has been for some time and
will continue to be.
0
50
100
150
200
250
2014 2015 2016 2017 2018 2019 2020 2021 2022
Coal US
CCGT UK
CCGT Japan
Wind onshore UK Wind offshore UK
Wind onshore US
Philippines coal
Japan coal
Historical LCOE by technology (USD/MWh)
9. https://tradingeconomics.com/commodity/coal
10. https://www.sciencedirect.com/science/article/abs/pii/S1364032117305531?via%3Dihub
Source: BNEF
, 2023

GWEC.NET
22
Wind power still maintains price
advantages in most countries, even
without considering the impacts or
future carbon pricing schemes.
There is no reason why wind power
should lose its price advantage
over LNG and coal in most markets
globally.
To make wind power as cost-
efficient as possible going forward, it
is essential that governments
continue to provide visibility on
future demand through ambitious
nationally determined contributions
and sectoral targets while
introducing enabling regulations and
removing bottlenecks in permitting
and other phases of development.
From cost to value
At the same time, to achieve their
ambitions, countries will also have
to move decisively to fix current
market and regulatory imbalances,
which have seen leading
companies in the wind industry
supply chain declare losses over a
period of several years while fossil
fuel-producing companies make
record profits.
This situation, referred to by
leading commentators in the
energy sector as a ‘bizarre
paradox’, has been ‘a colossal
market failure’, according to
GWEC CEO Ben Backwell.11
Poor
market design and procurement
have led to a ‘race to the bottom’ on
wind pricing, while inflationary
pressures combined with
government price caps have
exacerbated the squeeze on
profitability. As we shall see, this in
turn has led to underinvestment in
manufacturing and has created the
likelihood of supply chain
bottlenecks in the years to come.
In order to enable the huge amounts
of supply chain investment needed
to meet increased demand,
governments and regulators will
need to act smartly to fix current
market imbalances and set the stage
for growth.
While the focus over the last two
decades or more has been on
achieving cost reductions, with
procurement arrangements largely
led by concerns from treasury
departments, policymaking now
needs to focus on the societal and
economic value of wind energy.
Wind energy is already highly
competitive compared with fossil
fuels and nuclear, but its wider social
value needs to be recognised in
market and procurement
frameworks.
Wind energy, in combination with
other renewable energy
technologies, is the most efficient
way of decarbonising power
systems. The evidence shows that
a failure to deploy wind rapidly
enough carries with it far higher
costs in terms of exposure to fossil
fuel volatility, geo political pressure
and higher carbon emissions
leading to damage from climate
change.
Wind energy has the potential to
create tens of millions of new
skilled jobs around the world and
act as a catalyst for trillions of
dollars of investment. It is essential
that policymakers move the
discussion around procurement
away from a narrow focus on
achieving the lowest price
possible, to one around how they
can achieve the maximum amount
of economic development and job
creation, while moving rapidly to
fulfil their emission reduction
targets.
GWEC and its member
companies, alongside sister
organisations and partners like
IRENA and the IEA, are working
hard to achieve the necessary
change in focus and create
improved market and regulatory
conditions for a rapid and
confident transition.
This will allow wind original
equipment manufacturers (OEMs),
developers, shipping companies
and other actors in the supply
chain to invest, ensuring an optimal
balance between supply and
demand, and delivering benefits
for all.
In later sections of this report, we
look at how policy discussion is
shifting in key markets for the
renewables transition. But first we
examine the current state of the
global wind supply chain and
discuss the potential impact of
policies aimed at achieving a
larger share of national and
regional content in wind turbine
manufacturing.
11.
Wind Power’s ‘Colossal Market Failure’ Threatens
Climate Fight

PART 2: CHALLENGES IN THE SUPPLY CHAIN

GWEC.NET
24
Part 2: Challenges in the supply chain
While 2022 saw only 78 GW of
new capacity connected
worldwide, the market is ready to
bounce back in 2023, primarily
driven by expected explosive
growth in China. Cumulatively,
nearly 940 GW of wind power had
been installed globally (without
taking into account grid
connection) by the end of 2022.
forecasts that the 1 TW milestone
will be reached sometime mid-
2023.
What is the expected demand
in this decade?
Compared with the 2030 global
outlook released alongside last
year’s Global Wind Report, GWEC
Market Intelligence has increased
its forecast for total wind power
capacity additions for 2023–2030
by 143 GW (13%YoY). The main
reasons behind this upgrade
include:
l
Energy system reform in
Europe, replacing fossil fuels
with renewables to achieve
energy security in the
aftermath of Russia’s invasion of
Ukraine;
l
expand the role of renewables in
its energy mix;
l
An anticipated ten-year
installation uplift in the US, driven
by the passage of the IRA.
Although the revised rate of wind
growth is still not rapid enough to
enable the world to achieve its
Paris Agreement targets or net
zero by 2050, GWEC believes the
milestone of a second TW is likely
to be passed before the end of
2030 – provided the anticipated
growth materialises in the three
key wind markets of China, Europe
and the US.
What is the state of the global
wind supply chain?
As the birthplace of the wind
industry, Europe enjoys a mature
supply chain spanning from
turbine nacelles through to key
components and raw materials.
However, since establishing a local
wind supply chain in 2008–2010,
China has not only become the
world’s leading wind turbine
manufacturing base, but also the
largest production hub for key
components and raw materials.
Challenges in the supply chain
2020 2021 2022 2023 2024 2025
Installations need to grow 5x
Or we reach only 68% of the wind power required by
2030 to stay on track for a net-zero/1.5C pathway
2026 2027 2028 2029 2030
New wind capacity
New
global
installations
(GW)
Cumulative
global
installations
(GW)
Projected new wind capacity based on current growth rates
Annual capacity gap to meet net zero by 2050 scenarios
Cumulated wind capacity to meet net zero by 2050 scenarios
0
50
95 94 78 115 125 135 150 157 169 180 190
2 TW
1 TW
100
150
200
250
300
350
400
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
The 2 TW milestone is expected to be achieved in just seven years
1
5
4
2
3
World’s top five wind turbine and component production hubs by annual output
Source: GWEC Market Intelligence, February 2023
Source: GWEC Market Intelligence; IEA Net Zero by 2050 Roadmap (2021); projected new wind capacity from 2023-2030
assumes a ~7.2% CAGR, which is based on GWEC’s Q1 2023 Global Outlook; capacity gap figures are estimations based
on the IEA Roadmap milestone for 2030. Cumulative global installations for wind energy are roughly in alignment with the
IRENA World Energy Transitions Outlook: 1.5°C Pathway (2021). This data represents new and cumulative capacity and
does not account for decommissioned projects.

European and American turbine
OEMs decided to diversify their
supply chain to ensure security of
supply, in the aftermath of the
COVID-19 pandemic. India, the
second-largest Asia-Pacific (APAC)
hub for turbine assembly and key
components production, has since
gained an increasingly prominent
role in the global wind supply
chain.
While most of the suppliers to the
wind industry are still based in
APAC, Europe and the Americas,
new entrants have also emerged in
the Middle East and North Africa
(MENA) region.
Will there be enough supply
chain capacity to feed growth?
Turbine nacelles
Globally, there are 153 turbine
assembly plants currently in
operation, with another 74 facilities
either under construction or in the
planning stage. China has more
than 100 nacelle assembly
facilities in operation and another
64 under construction. With a
turbine nacelle production
capacity of 98 GW per year, the
country accounts for 60% of the
global market share, making it by
far the world’s dominant turbine
nacelle manufacturing hub.
Europe is the world’s second-
largest turbine nacelle production
base, with assembly facilities
mainly located in Germany,
Denmark, Spain, France, Portugal
and Turkey. The US is the world’s
third-largest wind nacelle
manufacturing hub, followed by
India and LATAM – primarily Brazil.
Globally, 163 GW of nacelle
production capacity is available in
2023. At first glance, the wind
industry appears to have enough
nacelle assembly capacity to meet
the projected global demand up
to 2027. However, the picture is
different if separate benchmarks
are applied for onshore and
offshore wind, especially at a
China (incl. capacity from three western turbine OEMs) 60%
Europe 19%
US 9%
India 7%
LATAM 4%
Other (APAC excl. China and India) 1%
163 GW
Global wind turbine manufacturing capacity in 2023
Overview of global wind turbine nacelle facilities
China Europe India USA LATAM Asia
Pacific
Africa
ME
Total
Total number of nacelle assembly
facilities (onshore)
77 (4)* 16 13 4 6 3 1 123
Total number of nacelle assembly
facilities (offshore)
20 (1)* 5 0 0 0 4 0 30
Number of announced nacelle
assembly facilities (onshore)
17 0 2 0 0 0 0 19
Number of announced nacelle
assembly facilities (offshore)
47 1 0 3 0 4 0 55
* facilities owned by western turbine OEMs
Note:Wind turbine manufacturing capacity refers to wind turbine nacelle assembly capability and doesn’t represent
actual nacelle production in 2023.

GWEC.NET
26
regional level.
Challenges in the supply chain for
onshore wind nacelles
China dominates global onshore
wind turbine nacelle assembly with
82 GW of identified annual capacity.
Out of this total, 12 GW is from the
three western OEMs:Vestas, SGRE
and GE Renewable Energy.
With 21.6 GW of annual assembly
capacity per annum, Europe is the
world’s second largest onshore
turbine nacelle production base,
followed by the US (13.6 GW), India
(11.5 GW) and LATAM (6.2 GW).
When we compare these
production capacities with the
onshore wind demand projected
for this decade, we conclude that
the supply chain in China, India
and LATAM will have enough
nacelle production capacity to
accommodate demand, while the
rest of world, in a business as
usual scenario, will continue to
Onshore turbine nacelle capacity
in China, 2023
82,000
MW
in India, 2023
11,500
MW
excl. China India, 2023
RoW 1% (350)
LATAM 15% (6,150)
Europe 52% (21,600) Chinese turbine OEMs 85% (70,000)
Chinese turbine OEMs 11% (1,200)
Indian turbine OEMs 39% (4,500)
Western turbine OEMs 15% (12,000)
Western turbine
OEMs 50% (5,800)
North America 32% (13,650)
41,750
MW
Onshore wind demand and supply benchmark, 2023–2030 (MW)
Demand vs supply analysis 2023-2030 (MW)
2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
Europe 14500 17750 18920 20950 23290 23500 24000 25000
US 8000 9000 10000 13000 15000 17000 18000 20000
LATAM 5860 5362 5200 5050 5030 5000 5000 5000
China 60000 60000 60000 60000 60000 65000 65000 65000
India 3400 4200 4500 4700 4500 4500 5000 5000
RoW 5619 9955 10424 13560 13705 14000 14300 15000
Global 97379 106267 109044 117260 121525 129000 131300 135000
l Sufficient l Potential bottleneck
Source: GWEC Market Intelligence, March 2023

rely on imported wind turbines
to cope with the anticipated
growth.
For Europe and the US, we expect
sufficient supply throughout this
decade if western turbine OEMs can
smoothly mobilise the capacity they
own in China and India. However, if
the free flow of the global wind
supply chain is interrupted by
proposed regional initiatives such as
‘Made in Europe’ and ‘Made in the
USA’ – and no new nacelle assembly
capacity is built at the same time –
we expect to see supply chain
constraints in both regions by the
middle of this decade. Even
assuming that all of the existing
nacelle production capacity in
Europe and the US can be fully
utilised – an unlikely occurrence as
buffer room is normally required to
ensure suffcient supply and
production capacity will be
impacted by the introduction of new
onshore turbines with greater power
rating – we foresee a bottleneck
occurring from 2026.
Challenges in the supply chain for
offshore wind nacelles
Compared with onshore wind,
the supply chain for offshore
wind turbines is more
concentrated, due to the fact that
more than 99% of total global
offshore wind installation is
presently located in Europe and
the APAC region.
Expected offshore turbine nacelle capacity
excl. China, 2024
15,200
MW
Offshore turbine nacelle capacity
in China, 2023
16,000
MW
Offshore turbine nacelle capacity
excl. China, 2023
North America 0%
Europe 83% (9,500) Europe 76% (11,500) China (CN OEMs) 94% (15,000)
APAC excl. China
17% (1,900)
North America 0%
11,400
MW
APAC excl. China
24% (3,700)
China (non CN OEMs)
6% (1,000)
Offshore wind demand and supply benchmark, 2023–2030 (MW)
Demand vs supply analysis 2023-2030 (MW)
2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e
Europe 5760 2955 7002 10036 12143 15403 21440 25950
China 10000 12000 12000 15000 15000 15000 15000 15000
APAC excl. China 1751 1569 2884 2615 3855 4770 6900 7900
North America 535 1660 3780 4750 4460 4500 4500 5000
LATAM 0 0 0 0 0 0 500 1000
Global 18046 18184 25666 32401 35458 39673 48340 54850
l Sufficient l Potential bottleneck

GWEC.NET
28
China is the world’s number-one
offshore turbine nacelle
production centre with annual
assembly capacity of up to 16 GW,
of which 1 GW is owned by one
western turbine OEM. Excluding
China, the APAC region has an
offshore turbine nacelle capacity
of 1.9 GW, mainly located in
Taiwan and South Korea.
In Europe, current nacelle assembly
capacity for offshore wind is about
9.5 GW, which we anticipate
reaching 11.5 GW next year when a
new nacelle facility comes into
operation in Eastern Europe.
No offshore turbine nacelle
assembly facility is currently in
operation in North America,
although GE Renewable Energy,
SGRE and Vestas have announced
nacelle investment plans for New
York and New Jersey in Q1 2023.
Similar to North America, LATAM
has no offshore nacelle assembly
facilities despite Chinese turbine
OEM Mingyang looking for
offshore wind investment
opportunities in Brazil since 2020.
Looking at the demand and
supply situation for this decade,
our benchmark results show
more challenges for offshore
wind than for onshore wind.
GWEC Market Intelligence does
not see any problems arising in
the near term, given that
European OEMs are able to share
spare offshore nacelle assembly
capacity with emerging markets
in APAC and North America in
2023–2024.
However, the situation is going to
change. Starting in 2026, we
expect Europe’s existing offshore
turbine nacelle assembly capacity
to no longer be able to support
growth outside of Europe.
In fact, we expect that from 2027
Europe’s offshore wind turbine
nacelle assembly capacity will
struggle to cope with the growth
expected in Europe alone. Existing
capacity needs to double in order
to meet the projected demand for
this region in 2030.
Looking at APAC (excluding
China), although offshore turbine
nacelle capacity is likely to
increase to 3.7 GW after expansion
work is completed at one of the
existing facilities in 2024, it will still
be insufficient to meet demand in
this region from 2027. Taking into
account estimates that demand for
offshore wind turbines in this
region will reach 7.9 GW in 2030, it
is imperative that the investment
plans announced by western OEMs
in partnership with Japanese and
Korean firms materialise in time.
In the US, considering local
content requirements (LCRs)
associated tax credits and
incentives under the IRA and the
two-year lead time needed to
build a new offshore wind nacelle
production facility from scratch, it
is of the utmost urgency that GE
Renewable Energy, SGRE and
Vestas turn their investment plans
into concrete action.
There are no plans for offshore
wind projects to be built in LATAM
until the latter part of this decade.
However, early investment is
needed to avoid bottlenecks. This
is especially true of Brazil, where
71 offshore wind projects, totalling
more than 170 GW, had filed
environmental investigation
licences by the end of 2022,
according to the country’s
Ministry of Mines and Energy.
Key components
GWEC Market Intelligence has
been monitoring the supply chain
for key wind turbine components
since 2019. Based on our latest
supply chain update, no
bottlenecks are expected in 2023–
2024 for key components such as

blades and generators, but further
investment in both components is
needed to accommodate growth
after 2024.
Following recent investment,
gearbox manufacturing capacity
is well positioned to support
the expected growth up
to 2027. A concentrated supply
chain and regionalised
sourcing strategies, however,
look certain to create
bottlenecks.
It is also important to note that
the supply chain for key
components is highly dependent
on China. In addition to
gearboxes and generators, China
controls the global supply chain
for castings, forgings, slewing
bearings, towers and flanges with
more than 70% global market
share. How other regions enact
policies designed to reshore
production or restrict trade will
have a strong impact on the
supply picture and on cost.
Global WTG generator manufacturing
capacity in 2022
125GW
Global wind gearbox manufacturing
capacity in 2022
160GW
Global WTG blade manufacturing
capacity in 2022
China 60%
Europe 14%
India 11%
US 7%
LATAM 7%
Other APAC 1%
China 65%
Europe 22%
India 7%
LATAM 3%
Other APAC 3%
China 75%
Europe 12%
India 12%
Other APAC 1%
130GW
Global wind key component supply chain overview

GWEC.NET
30
The increasingly ambitious wind
energy targets being set to reduce
reliance on traditional energy
sources – both in terms of
geographical and material
dependence – present a challenge
from a supply chain perspective. This
is particularly true for rare earth
elements (REEs), with top
policymakers increasingly calling for
de-risked supply chains.
Wind energy uses large amounts of
rare earth permanent magnets
(REPMs), contributing significantly
to global demand. Wind energy
OEMs have faced challenges in
obtaining the quantities of REPMs
they need, despite supply growing
at record speed and demand
softening thanks to ‘hybrid’ wind
energy technologies increasingly
replacing standard direct drive (DD)
turbines over the past five years.
Hybrid systems (medium-speed
drivetrains) use just one-tenth of the
REPMs needed in a DD drivetrain.
In the fourth quarter of 2022, China
accounted for 68% of rare earth
mining and 94% of downstream
processing. Only a meagre amount of
materials was processed elsewhere,
principally in Malaysia and Estonia.
Because the wind industry is exposed
to the impacts of geopolitical tensions
– and following a toughening of
China’s export restrictions of rare
earth-related technologies – there is
growing policy and industrial concern
in Europe, North America, Australia
and elsewhere.
While sourcing enough REPMs for
wind energy generation can be
difficult, the greatest challenge for the
industry is being able to source them
domestically or from a de-risked
supply chain. In major markets such
as Europe, the US and Australia,
demand for REPMs in wind energy is
substantially larger than local supply.
Policymakers have made some
efforts to bridge this gap, for
example in the US, the UK and
Australia, where Benchmark Mineral
Intelligence (Benchmark) expects to
see rapid processing capacity growth
by 2024-2025.
l
The US Department of Defense has
awarded two high-profile contracts
to MP Materials and Lynas Rare
Earths, at 35 million USD and 120
million USD respectively, to expand
rare earth oxide (REO) separation
capacity. Additionally, bill H.R. 5033
proposes to support magnet
producers in the US to help them
compete with their Chinese
counterparts. Benchmark forecasts
Case study: Sourcing rare earth materials for wind energy from local supply chains
China 68% China 94%
Other 6%
Other 32%
Processing
Mining
China dominated REE mining and processing in Q4 2022
2
0
2
7
2
0
2
0
2
0
1
9
2
0
1
8
2
0
1
7
2
0
1
6
2
0
1
4
2
0
1
5
2
0
2
6
2
0
2
5
2
0
2
4
2
0
2
3
2
0
2
2
2
0
2
1
0%
20%
40%
60%
80%
100% 16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Medium-speed drive Direct drive
High-speed drive REPM consumption, tonnes
Wind turbine technology forecast (%) and equivalent direct REPM use (tonnes)
Source: GWEC, Benchmark Mineral Intelligence
Note: This chart displays direct REPM use (magnet volumes) in DD and medium-speed drivetrains per annum. It is not
normalised to final raw materials demand.
Source: Benchmark Mineral Intelligence

active production from multiple
REPM facilities in the US, notably by
MP Materials in Texas and USA Rare
Earths in Oklahoma.
l
The UK’s 850 million GBP Automotive
Transformation Fund will develop
Pensana’s 145 million GBP
separation facility at Saltend
Chemicals Park, in northern
England. This facility is expected to
consume a growing input of external
feedstocks – as the facility scales
and the company’s own mine
reduces production – to produce
separated oxide, and is the UK’s
largest effort to date to establish
domestic rare earth processing.
l
In Australia, Iluka Resources has
received 1.25 billion AUD in non-
recourse financing from Export
Finance Australia. This is part of the
government’s wider 2 billion AUD
Critical Minerals Facility to establish
the Eneabba refinery in Western
Australia, with additional capacity to
consume external feedstocks.
While the pipeline of processing
facilities in North America, Australia
and Europe is significant, it will take
time for the first inputs to be converted
into saleable material, and to fund and
construct the required facilities.
The availability of locally processed
and manufactured REPMs may be
further limited, in the short and
medium term, by offtakes securing
sizeable portions of planned
production for EV manufacturers.
Whereas a facility such as Solvay’s La
Rochelle, in France, may be able to
scale up fast thanks to existing
knowledge and experience, other
parts of the puzzle need to align.
Before a diversified, de-risked and
sizeable local supply chain is
established, more than 300 GW of
additional wind power capacity may
already have been built.
Benchmark forecasts a more
diversified and regionally scaled rare
earth processing market beginning to
take shape after 2025, particularly in
Europe, North America and Australia.
Environmental protections and
economic concerns, such as high
CAPEX requirements and low Chinese
costs, together with considerable
project lead times, cast a shadow on
capacity addition forecasts, however. A
large part of the wind industry will, as a
result, have to rely on sourcing REPMs
from China in order to meet clean
energy demand in the short term.
With input from Benchmark Mineral Intelligence
Case study: Sourcing rare earth materials for wind energy
from local supply chains (continued)

GWEC.NET
32
Wind turbine installation
vessels (WTIVs)
According to GWEC Market
Intelligence’s Global WITVs
database 2022, China and
Europe operate the majority of
jack-up and heavy-lift vessels
used for offshore wind turbine
installation. No global shortage
of WTIVs is expected up until
2026.
Following an offshore wind
installation rush in 2021, new
installations in China slowed down
in 2022, and we do not expect to
see 2021-level installations again
until 2026.
In Europe, the currentWTIV supply
chain can cope with demand, given
that annual offshore wind installations
are relatively flat and unlikely to
reach the 10 GW milestone until
2026 – which also explains why
European vessel operators are able
to release their jack-up and heavy-
lift vessels over the next two years to
support the demand from emerging
markets in Asia, mainly Taiwan and
Japan, and the US.
Looking at the supply chain
situation for the 2027–2030 period,
however, while GWEC Market
Intelligence does not expect WTIV
supply chain constraints in China, it
foresees a likely shortage in
Europe towards the end of this
decade, unless investment in new
WTIVs is made before 2027
(assuming a lead time of three
years for delivering a new WTIV
vessel).
In the US, where only two tailor-
made Jones Act compliant WTIVs
are currently under construction,
plans for new WTIVs will have to be
executed in the next two or three
years to avoid bottlenecks, if the
Biden Administration’s target of 30
GW of offshore wind by 2030 is to
be met.
Restrictive trade policies could
delay the energy transition
The past three years have shown
the exposure and vulnerability of
renewable industries to geopolitical
dependencies, commodity price
cycles, logistics bottlenecks and
trade barriers.The sudden post-
lockdown recovery of industrial
production in 2021 led to fierce
competition for raw materials, as
well as ongoing bottlenecks in
manufacturing capacity.
Russia’s invasion of Ukraine also
deepened geopolitical concerns
and intensified the existing trade
tensions between China and other
markets, such as Europe and the US.
All of this has brought the urgency
of building supply chain security
for renewables to the top of the
political agenda and created a
global green investment race.
The Inflation Reduction Act (IRA),
signed into law by the Biden
Administration in August 2022,
promises to move the US closer to
its climate goal. Its provisions on ax
credits and LCRs associated
incentives have generated concern
in the EU and other countries about
the IRA’s potential negative impact
on their domestic manufacturing
industries. In response, the EU
unveiled its Green Deal Industrial
Plan, which aims to boost Europe’s
cleantech competitiveness and to
keep green investments at home.
What we are witnessing now is a
clear misalignment between
government, industrial, trade and
financial policies. It must be
understood that without well-
functioning and competitive
global wind supply chains –
alongside equal access to raw
materials and components – the
energy transition will not
materialise. There is a danger
that the restrictive trade policies
proposed by the EU and the US
may risk delaying the global
energy transition.
In operation
Under construction/planned
0
10
20
30
40
50
60
70
80
Heavy lift
(North America)
Jack-up
(Europe)
48
12
Heavy lift
(Europe)
31
4
Jack-up
(North America)
4 2
Jack-up
(China)
47
19
Heavy lift
(China)
4
37
Jack-up
(Asia ex.China)
4
10
Heavy lift
(Asia ex.China)
8
Number of wind turbine installation vessels in 2022
Source: GWEC Market Intelligence Global Offshore Wind Turbine Installation Vessel Database, October 2022

PART 3: THE RISKS AND OPPORTUNITIES
OF REGIONALISATION

GWEC.NET
34
As a result of the combined effects
of geopolitical threats, climate
imperatives and energy security
challenges, the deployment of
renewable energy capacity is
expected to accelerate
substantially over the coming
years (see Part 1). This
acceleration comes as countries
and regions move to implement
their ambitious energy and
climate targets and is driven by
continued cost advantages
compared with fossil fuels.
increased its forecast for additional
wind power installations in the
2023–2030 period by 143 GW
(+13%YoY).We now expect the
first TW of wind power to be
installed by mid-2023 and the
second TW to be reached at the
end of this decade.
This massive increase in
installations will create a need for
significant additional capacity
across the entire wind supply
chain (see Part 2). For example,
there are 153 turbine nacelle
assembly plants in operation
today, with another 74 facilities
either under construction or in
the planning stage. These
assembly plants will need
components from across the
global supply chain, requiring
substantial investment to meet
demand.
Our analysis in Part 2 also reveals
that shortages for both nacelles
and key components may
develop in the US and Europe
mid-decade if the free flow of the
global wind supply chain is
impacted by regional initiatives
aimed at achieving ‘Made in
Europe’ and ‘Made in the USA’
supply chains.
GWEC is concerned that
governments around the world do
not understand the potential
impacts of their poorly
coordinated actions, which is why
the availability of key data on
supply chain development is
critical, and why continuous
dialogue with industry must be
undertaken.
The Inflation Reduction Act (IRA)
provides significant incentives for
US-based manufacturing, which
could render uncompetitive any
projects that do not use the levels
of local content required to qualify
for the extra tax incentives
stipulated in the law. The EU has
expressed ‘serious concerns’
about the IRA, alleging it may
breach WTO international trade
rules, and has responded with its
Green Deal Industrial Plan.Within
this plan is the Net Zero Industry
Act (NZIA), which requires national
governments to apply non-price
criteria – defined as environmental
sustainability, energy system
integration, and contribution to the
resilience of cleantech supply
chains – to procurement
mechanisms. These measures
would allow governments to award
higher prices in procurement
mechanisms to enable companies
to invest in EU-based supply
chains, and make production more
sustainable through circular
economy and other practices.
However, policymakers should
beware of introducing more
Regionalisation and decoupling supply chains
– risks and opportunities

Part 3: The risks and opportunities of regionalisation
Country/ Region Actions taken to reshore supply chains
USA Passed Inflation Reduction Act (IRA) in August 2022.

Provides a tax credit, the advanced manufacturing production credits (AMPC), for US-made renewable energy equipment, including vessels, with sunsets beginning in 2030.
Extends the existing ITC and PTC to 2024 and then replaces them with the Clean Electricity Investment Credit and the Clean Electricity Production Credit, both applying to
designated renewable energy and storage technologies. They sunset in 2032 or when the Treasury determines that annual greenhouse gas emissions from electricity
production in the US are less than 25% of 2022 levels.
Incentivises developers of US renewable projects to purchase domestically produced equipment by providing an additional tax credit if they meet domestic content
requirement (DCR) thresholds.
To qualify, onshore wind projects installed before 2025 must source 40% (20% for offshore wind) of all equipment in the US. This rises to 55% after 2026
(2027 for offshore wind).
100% of steel and iron construction materials must be manufactured in the US.
Requires certain wage and apprenticeship requirements to qualify for some of the incentives.
Introduces other incentives to induce additional investment in everything from rural small business loans for energy efficiency to RD grants.
According to consultancy Wood Mackenzie, incentives under the IRA will cut the cost of solar, wind and storage equipment by anywhere from 20% to 60%.
European Union The European Commission presented its Green Deal Industrial Plan in March 2023, consisting of a Net Zero Industry Act (NZIA) aiming to strengthen the EU’s industrial base for
clean technologies, a Critical Raw Materials Act (CRMA) to increase Europe’s capacity to source and refine critical raw materials, and more flexible state aid rules.
The NZIA aims to support investment in manufacturing capacity in ‘net-zero emissions’ technologies in Europe. For wind, it sets an annual manufacturing capacity target of 36
GW.The commission envisages a new Sovereignty Fund to support cleantech supply chains and identifies the EU Innovation Fund as a bridging instrument.
The CRMA includes a list of materials important for the wind industry such as REEs used in permanent magnets, copper for cables and lithium for batteries.With the aim of
building its own domestic critical raw materials supply chain, the CRMA wants the EU to extract at least 10% of the critical raw materials it uses from within Europe by 2030. At
least 40% should be processed within the EU by then. Under the CRMA, 15% of the EU’s annual consumption of raw materials would need to be recycled by 2050.
New EU State Aid Guidelines for Climate, Energy and Environment entered into force in January 2022, allowing governments to include up to 30% non-price elements in the
selection criteria of their auctions. The NZIA now requires national governments to apply non-price criteria, defined as: environmental sustainability, energy system integration,
and contribution to resilience of cleantech supply chains.
More flexible state aid guidelines were also proposed for national investments in cleantech manufacturing under the Temporary Crisis and Transition Framework.This allows national
governments, for a limited time, to support CAPEX investments in their national cleantech supply chains. It does not cover OPEX.
The European Commission has imposed anti-dumping duties on towers imported from China, increasing tariffs from 7.2% to 19.2%.
Germany Following European Commission proposals to allow more ‘state aid’, Germany is considering offering financial support to investments in domestic energy transition supply
chains, as well as wind and solar projects.
UK Through negotiation, the industry has agreed to a local content requirement (LCR) of 60% by 2030.
According to the UK government, making a LCR reality will require “significant inward investment activity” on capex elements of offshore wind projects.
Poland Under the Polish Offshore Wind Sector Deal, a level of LCR must be achieved at different stages: “at least 20-30%” of a project’s total value in the preparatory, installation and
operational stage for projects implemented under the first, pre-auction stage of the support system; at least 45% for projects implemented by 2030 under the second, auction
stage; and at least 50% for projects implemented after 2030.
Japan South Korea Both have strong requirements for local content in wind projects that effectively require localisation of parts of the supply chain.
Taiwan Has produced a specified ‘list’ of components that must be localised, depending on the completion date of offshore wind projects.

GWEC.NET
36
requirements and restrictions on
industry that do not result in better
rates of return for companies.
The NZIA also sets an annual
wind-turbine manufacturing
capacity target of 36 GW for EU
member states, which is more than
double the 16 GW of wind turbines
installed in Europe in 2022.
However, unlike the clarity and
long-term visibility provided in the
IRA, the NZIA does not directly
address the poor market
conditions that caused the
profitability of European wind
turbine manufacturers to fall. Nor
does it establish new EU funding
or financing mechanisms to scale
supply chains to the level required.
Another key pillar of the EU’s plan,
the Critical Raw Materials Act,
states that by 2030 10% of raw
materials should be extracted and
at least 40% of them processed in
the EU. However, what’s not yet
clear is how the potentially higher
costs of those materials will be
distributed fairly among western
supply chain companies.
Many other major economies,
including Japan, Korea, the UK,
Poland, India, Taiwan, Saudi Arabia
and Brazil already have – or are in
the process of designing –
measures to ensure high levels of
local content in their wind energy
sectors. The table below
summarises some of the measures
being introduced by major actors.
Some countries are reaching well
beyond manufacturing, going
‘upstream’ to achieve local supply
of critical inputs for their industries,
including specific steel products
used in the wind industry and raw
materials such as rare earth
elements. In some cases, this
includes inputs that are currently
not produced locally, or are
produced in small quantities.
The COVID-19 crisis and its
aftermath (including widespread
disruption of logistics and
increased geopolitical tensions)
have created a greater
understanding of the need to
create a more diversified and
resilient supply chain. However,
global trade flows continue to be
critical to global economic
manufacturing. Additionally, actions
attempting to decouple from
China and to reshore or localise
manufacturing capabilities are
likely to create unintended
consequences in terms of
bottlenecks and higher costs.
These in turn, could have the
potential to slow, delay or even
derail the global energy transition.
It is of critical importance that, as
they are urged to act on the energy
crises, governments around the
world do not underestimate the
potential impacts of poorly
Prescriptive
Highly prescriptive taxes
Component-specific requirements
Incentive based
Income or production tax credits
More collaborative approach
Range of options for localisation

coordinated interventions. This is
why GWEC advocates urgent and
continued dialogue with the wind
and renewables industry – along
with the wider network of key
components and commodities
suppliers – to ensure that policies
achieve the intended goals of
supporting cost-effective and
faster deployment of larger
quantities of renewables while
boosting local economies and
employment.
Governments have several choices
when they look to localise or
reshore their energy sectors. They
can encourage the use of locally
produced content either through
incentives and/or preferential
treatment, such as tax incentives or
favourable customs duties.
Alternatively, they can specify
which goods or services must be
provided by domestic suppliers.
Or they can use a combination of
both of these approaches.
For GWEC members, localising
production is a desirable approach
that can lead to significant
efficiencies and logistical savings.
However, achieving necessary
scale to amortise investments in
industrial plants is a key concern.
The industry has advised
governments against prescriptive
localisation requirements and
argued instead for flexibility in
order to build on national and
regional competitive advantages.
As a rule, GWEC is more
supportive of incentive-based
rather than prescriptive policies as
the former tend to give more
flexibility to both OEMs and the
supply chain in optimising their
production.
Measuring the impacts of
reshoring
As more reshoring policies are
being proposed and introduced
globally, it is important to reflect on
the potential impacts on costs and
timing of wind installations. Any
time policies require local content,
either through restrictions or
incentives, there is a risk of
increasing the overall costs of the
wind power produced. Another
significant unintended
consequence is the creation of
supply chain bottlenecks.
Currently the wind supply chain is
highly globalised but with China as
the principal supplier at a
component level. GWEC Market
Intelligence’s global wind supply
chain analysis shows that China
controls more than 70% of the
global supply chain for powertrains
(main shaft and gearbox plus
generator), slewing bearings,
towers, flanges, castings and
forgings. By comparison, according
to consultancy Wood Mackenzie, no
powertrains or castings were made
in the US in 2021. Even in some
countries where sophisticated
manufacturing supply chains exist,
for example India, China is the
primary supplier of castings.
How politicians, policymakers and
regulators globally try to address
this concentration in the supply
chain will have a critical impact on
the wind industry and its ability to
deliver the capacity necessary for
carrying out the energy transition
in the timelines outlined in the
Paris Agreement.
Industry approaches to
localisation
As we have noted, wind project
operators and OEMs must take into
consideration a series of complex,
interconnected factors when they
decide where to locate
manufacturing facilities. These
include:
l
the size of local wind markets
l
logistical factors
l
the existence of national and
regional incentives
l
the existence of specific rules
around local manufacturing
l
the availability of critical
components and materials
l
the existence of a skilled
workforce
l
the need to create or maintain
political support for continued
market growth.
For the offshore wind sector, a
strong degree of localisation is
imperative, since producing and
assembling very large
components is best done portside,
facilitating installation in nearby
waters. Transporting fully
assembled nacelles plus blades
and towers from remote locations
and installing them in limited
numbers would likely make
projects uneconomical.
There is no exact formula for
managing the trade-offs between
localisation and affordability.
Achieving the right balance can be
particularly challenging in new
markets that have yet to deploy wind
projects – and as such do not have
fully developed and/or competitive
wind supply chains.
From a purely cost-driven point of
view, it makes more sense for
countries to take a phased
approach that allows imports of
key components and aims to
increase localisation as scale

GWEC.NET
38
increases. It is also important for
countries to carefully consider
their specific advantages in terms
of access to materials and
components at competitive prices,
existing industrial footprints and
availability of skilled labour.
Countries with relatively small
domestic markets need to look to
regional markets and plan how their
industries can make the most of
regional supply chains while playing
to their own advantages. For
example, for offshore wind, the
countries around the North Sea have
built an array of interlinked industrial
capabilities, a skilled workforce, port
facilities and logistics around
installation and operations and
maintenance. It would be desirable
for a similar cooperative ecosystem
to evolve to address APAC’s strong
demand for offshore wind, rather
than every country trying to quickly
evolve its own complete offshore
wind manufacturing and installation
supply chains.
However, as we have seen, cost
considerations often take second
place to concerns such as local
investment and job creation; the
position of local industrial
conglomerates; and political
considerations around national
control and rivalries with other
actors. In many cases, strong
political factors make commitments
to creating a local wind energy
manufacturing industry a
prerequisite for achieving the
regulatory support the wind sector
needs to take off.This is particularly
true given the predominance of
government-run auctions as the
main procurement mechanism for
wind energy and the strong political
levers that these create.
In the long run, as markets develop,
the growth of the wind energy
manufacturing sector and related
service sectors can play a key role
in maintaining social and political
support for the industry. As we
have seen in places as diverse as
the UK, the US, Brazil and Denmark,
local manufacturing and
employment eventually translates
into long-term, bipartisan support
for the wind industry, and creates a
virtuous circle of growth,
investment and higher political
ambition for the sector.
In short, industry is usually willing to
accept some increase in costs in
order to achieve political and
regulatory support and wider social
licence. But some ways of achieving
this are better than others.
The debate around the proposed
approaches for achieving more
local content is developing rapidly.
GWEC, as already noted, is
strongly supportive of the
incentive-led approach that has
been adopted in the US through
the IRA and would suggest that this
approach be adopted – and
adapted, of course, to local
circumstances – in other major
energy markets such as the EU, the
UK, Japan and elsewhere.
As the world enters a phase of
significant acceleration of
renewable energy deployment,
with governments and the
private sector seeking to realise
heightened ambition, GWEC
believes that the incentive
approach will be a key
differentiator for countries and
regions wishing to attract the
huge amounts of investment that
the energy transition will
require. Although the panorama
is evolving rapidly, it seems
clear that other countries and
regions are now scrambling to
match the ambitious approach
the US has taken and will risk
losing out if they don’t.
GWEC also believes that the
incentive-based approach will
play a key role in enabling the
wind industry to push beyond
the challenging period it has
faced over the last few years and
begin to scale up for the next
phase of global growth with
confidence.
The incentive approach will be a key differentiator
for countries and regions in attracting the huge
investments that the energy transition will require

As has been widely noted, current
market and procurement
arrangements – including ‘race to
the bottom’ pricing, unfavourable
tender rules around ‘negative
bidding’ and low price caps – have
created a highly unfavourable
environment for the wind energy
manufacturing industry. The
evidence so far suggests that
incentive-based approaches to
stimulating supply chain
investment, such as the IRA and its
precursors, will be much more
effective than approaches based
around prescriptive LCRs or trade
restrictions.
Government packages that enable
transparent and widely available
access to incentives will improve
project economics and demand,
provide strong impetus to sourcing
from domestic manufacturing and
provide the visibility for the supply
chain to make long-term
investments. In contrast, attempts to
force localisation without any
measures to improve the
economics of the wind energy
value chain risk increasing costs in
an already inflationary environment,
ultimately further undermining the
profitability of the sector.
Government and industry need to
find the right balance between
countries’ legitimate expectations
to benefit from the energy
transition while maintaining a
cooperative environment where
fair competition and scale benefits
play out. In the absence of frank,
evidence-based dialogue, there is
a risk that low-carbon targets will
be missed and the overall cost of
the energy transition will increase.
Continued collaboration and
dialogue are needed to achieve
the energy transition
As the data in this report shows,
policy- and market-led demand for
wind energy will increase
dramatically in the coming years.
And yet, due to unsatisfactory
market conditions, permitting
bottlenecks and stop-start political
support, investment in the global
supply chain has been insufficient
to prepare the industry for the
anticipated growth ahead.
Investment has been made most
consistently in China, creating a
world-class wind manufacturing
sector on the one hand, but
creating a highly imbalanced
global supply chain on the other,
sparking legitimate concerns
around dependency and a lack of
resilience, particularly in the wake
of COVID-19 and the post-
pandemic crisis in logistics.

GWEC.NET
40
In order to meet the ambitions of
governments, energy consumers
and wider society, the wind
industry needs to invest strongly in
increasing the capacity of the
supply chain while simultaneously
building resilience and
diversification.
GWEC believes that
policymakers’ approach to this
task in the present period could
greatly impact the success of the
energy transition. Supply chain
diversification and reshoring will
undoubtedly affect the costs of the
transition, but to what extent will
depend on how decisively
policymakers intervene, and over
which time period.
If poorly conceived or executed,
actions to impose rapid reshoring
could lead to supply chain
bottlenecks (particularly in the EU
and the US, but also in other large
economies), potentially leading to
material delays in the transition.
We have already seen the impact
of such bottlenecks on a more
localised scale in the past – the
current situation could see far
more significant impacts.
GWEC recommends that
policymakers, international
institutions, the private sector and
civil society engage in a
comprehensive dialogue to build
supply chains that can meet the
requirements of the Just Energy
Transition while ensuring that
necessary inputs are available at
the right pace and without the risk
of sharply higher costs and
bottlenecks.
Similarly, the intensification of
more restrictive trade practices
and trade disputes could also
lead to price increases and
disruption – although the
evidence suggests that, despite
increasingly loud debate, we are
a long way from an end to
globalisation. GWEC has
advocated a cautious approach
from policymakers involving full
consultation with relevant actors
in order to fully understand
impacts from trade restrictions.
The scale of the investment and
production needed to carry out the
energy transition will require
continued global and regional
collaboration and the scaling up of
widespread investment.We believe
that it is imperative for policymakers
to come together to collaboratively
design mechanisms that facilitate a
streamlined, incentivised and
accelerated energy transition.
If designed properly and
comprehensively, policies created
to enable the scaling up of the
supply chain and its diversification
represent a huge opportunity for
the world.We will see in
subsequent sections how different
countries and regions are
approaching the task.
GWEC and the wind industry will
be engaging in intensive dialogue
with all stakeholders in the
coming months and years to
ensure we are playing our role in
achieving the scaled-up,
confident and diverse supply
chain the world needs.
Global trade is highly complex, and no
region is close to being self-sufficient,
a McKinsey Global Institute report
points out. It makes a few key points:
l
No region is close to being self-
sufficient. Every region relies on trade
with others for more than 25% of at
least one important type of good.
l
About 40% of global trade is
‘concentrated’, with importing
economies relying on three or fewer
nations for this share of global trade.
l
Over the past five years, the
largest economies have not
systematically diversified the
origins of imports.
l
All economies have vulnerabilities,
some more than others.
l
Informed reimagination of global
trade requires a granular approach
both in mapping concentrated trade
relationships and in deciding on
action – whether to double down,
decouple or diversify.
Trends in globalisation – here to stay?

PART 4: THE IRA IS SET TO TURBOCHARGE
THE US WIND SECTOR

GWEC.NET
42
Part 4: The IRA is set to turbocharge the US wind sector
The Inflation Reduction Act (IRA) is
not only the single largest
investment in renewable power in
the history of the United States, but
simply the largest investment in
climate action the world has ever
seen. It is clear why the IRA has
been widely received as
‘transformative’ in its projected
impact domestically, from
renewable energy growth to job
creation and society-wide benefits
such as cleaner air.
For the American government, the
IRA amounts to a fundamental
reshaping of the global renewable
energy supply chain, by
repatriating significant segments to
American soil. From a global
climate standpoint, the IRA keeps
hope alive for meeting the Paris
Agreement’s goal of limiting global
warming to 1.5C.
With so much to deliver, there is a
sharp focus from the wind
industry on local content
requirements and effects on the
global supply chain. In the wider
global context of an expected
significant increase in wind
energy deployment across many
regions, it is worth exploring the
overall impact of the IRA as a
model for transformative climate
action and as a source of national
and regional competition.
While the IRA has already
yielded results in a short time, a
crucial part of the big picture will
be how the supply chain adapts
over time to facilitate the
projected growth.
Since President Biden signed the
IRA into law, the American clean
energy industry has announced:
l
More than 65 billion USD of
capital investment into clean
energy projects, enabling more
than 30 GW of new clean energy
capacity
l
32 new or expanded clean
energy manufacturing facilities,
including:
l
6 new wind power
manufacturing facilities (or
reinvestment in existing plants)
l
18 new solar manufacturing
facilities
l
8 new grid-scale battery
storage manufacturing
facilities
l
Nearly 14,000 new
manufacturing jobs associated
with new facility announcements
l
3 billion USD in consumer
savings from accessing clean
energy sources.
‘Transformative’ impact
It is hard to overstate the
transformative effects the IRA will
have on the US electricity grid and
the broader economy. The
American Clean Power Association
(ACP) estimates the IRA will
deliver upwards of 550 GW of new
clean power through to the end of
the decade. Once in place,
renewable energy projects will
deliver around 40% of the
country’s electricity, equivalent to
meeting the electricity needs of
160 million homes in the country.
The impact on the American
economy will be profound as well.
The business community will need
to invest upwards of 600 billion
USD to bring these projects to
market and create and support a
workforce of at least one million.
Local communities will earn
valuable dividends from these
projects in the form of local jobs,
state and local tax revenues, and
increased economic activity. ACP
estimates rural American
communities will see 17 billion USD
in new state and local tax revenues.
Critically, the investments enabled
via the IRA will deliver emission
reductions and consumer energy
Inflation Reduction Act sets the stage for fundamental
transformation of the US wind sector

cost savings. According to the ACP
,
US emissions will decline 40%
while each consumer will
experience a saving of more than
1,000 USD per year on energy bills.
A national supply chain in a
global industry
The IRA extends the production tax
credit (PTC) and investment tax
credit (ITC) for wind and solar
through 2024 before transitioning
to a technology-neutral tax credit
that will remain in place until 2032
or when electric-sector emissions
fall to 75% of 2022 levels,
whichever is later. The legislation
introduces a new clean energy
component manufacturing PTC
– providing equipment
manufacturers with a component-
specific tax credit for each unit
produced domestically.
Importantly, the US Congress
included provisions to boost
renewable energy investment in
low-income communities, regions
of the country historically
dependent on the fossil fuel
industry, and in domestic
manufacturing capabilities.
Support for domestic
manufacturing is poised to spur
the buildout of a robust domestic
supply chain for both onshore and
offshore wind. Component facilities
that have been idle in recent years
are contemplating restarting
production, while numerous
equipment providers to the
offshore wind industry are
pursuing plants along the East
Coast. Recently, GE and Siemens
Gamesa announced intentions to
build offshore wind nacelle
manufacturing plants so long as
sufficient orders materialise from
recent solicitations.
Preferences for domestically
manufactured components and
materials point to the emergence
of a more robust US clean energy
Support for domestic manufacturing is poised to
spur the buildout of a robust domestic supply chain
for both onshore and offshore wind

GWEC.NET
44
supply chain. New manufacturing
facilities, processing plants and
raw material production will
further catalyse economic growth
and job creation, with the intention
of insulating the US from
geopolitical supply chain risks.
Protecting against those risks has
engendered criticism that the act
disadvantages foreign companies,
but the IRA has also set in motion a
new wave of climate and clean
energy ambition. The EU has
responded with its Green Deal
industrial plan and other countries
are exploring their own responses.
However, uncoordinated
government activity leading to an
entrenchment of national and
regional supply chains risks
stalling the global wind industry’s
growth. A coordinated and
balanced expansionist approach
from governments is necessary for
domestic markets to grow while
ensuring a healthy global supply
chain that can deliver cost-effective
clean energy.
Uncertainty remains on how
quickly the global and American
supply chain can adapt to the new
conditions created by the IRA, to
deliver the scale of projected
growth. China produces nearly
70% of all powertrains and 65% of
castings, while the US produced
none of either in 20211
.While the
US has enough manufacturing
capacity to supply most domestic
demand for onshore turbine
equipment to 2031,the story is
different for offshore, where the US
is at a standing start.Whether
enough capacity will come online
to supply all US offshore wind
developments planned for
installation by 2027 remains a key
issue.
Beyond wind power, energy
storage is eligible to qualify for the
investment tax credit for the first
time, and green hydrogen can
access a production tax credit
rationed depending on the
lifecycle emissions profile of the
fuel’s production.
With clear incentives and stable
policies for the renewables
industry in place, the ACP expects
annual wind, solar and energy
storage capacity installations to
grow to over 90 GW by the end of
the decade, more than tripling the
28 GW installed in 2021. This
growth will require unprecedented
supply chain mobilisation and
0
20
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e
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2
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2
5
e
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0
2
6
e
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e
40
13% CAGR
60
80
120
100
28GW 28GW
38GW
44GW
53GW
58GW
68GW
75GW
85GW
97GW
Projected annual clean power capacity installations under the IRA
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e
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e
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0
2
7
e
0
5000
10000
15000
20000
Offshore
Onshore
US new wind power installations forecast (MW)
Source: ACP, 2022
Source: ACP, 2023
1. https://www.woodmac.com/horizons/boom-time-what-the-inflation-reduction-act-means-for-us-renewables-manufacturers/

careful coordination between the
federal and state governments, and
also on a global level.
Solidifying the wind energy
supply chain
The US wind industry is a
successful example of onshoring
manufacturing. Strong growth
beginning in the 2000s attracted
core equipment providers to
establish US facilities. These major
component manufacturers brought
their supply chains with them. As a
result, over 85% of wind turbine
nacelles are manufactured
domestically and the broader
supply chain includes more than
500 factories churning out parts
and components for the industry.
Previously, policy uncertainty
including impending expiration of
the PTC had put much of the wind
industry’s supply chain at risk. Now,
with over a decade of policy
support in place, equipment
providers are looking to reinvest in
their domestic supply chains. In
effect, the legislation will help
ensure the US maintains a thriving
US-centric supply chain.
The offshore wind industry is, in
many ways, in a similar situation to
the onshore wind industry 20 years
ago. Growth prospects are enticing
equipment providers to explore
strategic investment in new
manufacturing plants. In fact, firms
have already announced more than
2 billion USD in planned investment
over the next few years, according
to the ACP
. The IRA’s manufacturing
PTC and the domestic content
bonus for the PTC/ITC will firm up
and potentially accelerate these
investments.
However, challenges remain. The
absence of Treasury guidance
implementing the manufacturing
production credits and outlining
the qualification requirements for
Growth prospects are enticing equipment
manufacturers to invest in new plants: firms have
announced plans to spend more than 2 billion USD

GWEC.NET
46
the domestic content bonus are
currently hindering investments.
In February 2023, the Treasury
issued the first of two notices to
provide guidance on how
taxpayers can benefit from the
manufacturing programme in the
IRA. The Advanced Energy
Project Credit – first enacted by
the American Recovery and
Reinvestment Act of 2009 –
awards up to a 30%
investment tax credit for
qualifying ‘advanced
energy projects’,
including those that
enable the
production or
recycling of wind
turbines, solar
panels, heat
pumps, batteries
and electric
vehicle
components.
Moreover, 4 billion
USD will be set aside
for investments in energy
communities that have seen
closures of coal mines or
retirements of coal-fired power
plants in recent years.3
Wind at the heart of a clean
energy future
The Biden Administration is
targeting a 50-52% reduction in
economy-wide emissions by 2030
and a net-zero emissions grid by
2035. The electricity sector is
expected to make the largest
contribution to economy-wide
emission reductions this decade.
This means that renewables will
be the largest driver, and that
wind energy – both onshore and
offshore – is critical to achieving
these targets.
Annual wind additions are
expected to more than double
from roughly 10 GW per year
today to more than 20 GW by the
end of the decade. These volumes
will support continued investment
in the domestic supply chain and
position the US as a top market
within the global industry.
Striving towards a net-zero
emissions grid by 2035 will require
further significant increases in
annual installation volumes. All
signals point to the same
conclusion: the wind industry will
be a central component of the
USA’s clean energy future.
Co-authored with American
Clean Power
3. https://www.whitehouse.gov/cleanenergy/clean-energy-
updates/2023/02/13/treasury-issues-new-guidance-to-
unleash-clean-energy-manufacturing/

PART 5: HOW EUROPE PLANS TO
RISE TO THE CHALLENGE

GWEC.NET
48
Part 5: How Europe plans to rise to the challenge
Europe has a big challenge
ahead. In order to reach the
objectives of Europe’s new
energy security strategy,
REPowerEU, it needs to build on
average 30 GW of new wind
energy capacity each year to
2030.Yet, last year EU countries
only installed 16 GW of new wind
capacity. And wind turbine orders
went down 47% YOY whilst we
saw hardly any final investment
decisions in offshore wind.
This is the result of higher
uncertainty for new wind energy
investments in 2022. Inflation
caused turbine prices to go up
over the past two years. And EU
governments enacted unhelpful
and uncoordinated power market
interventions to cope with the
energy crisis. The permitting
situation in Europe is still not what
it should be. All of these factors are
making the situation for Europe’s
supply chain more precarious.
Permitting
Slow and cumbersome permitting
remains one of the biggest
obstacles for the expansion of
renewables in Europe. Some 80
GW of wind energy projects are
stuck in permitting procedures
across Europe: they must be
unlocked as quickly as possible.
The EU has set out to simplify
permitting rules by amending the
EU Renewable Energy Directive
and by putting forward
‘emergency measures’ allowing
governments more leeway to
simplify permitting.
As part of the REPowerEU strategy
the European Commission
proposed a number of important
reforms last summer to speed up
the permitting of renewables.
These now need to be negotiated
and enshrined in EU legislation in
a revised EU Renewable Energy
Directive.
First is the proposal to consider the
expansion of renewables a matter
of ‘overriding public interest’,
enabling the EU to reach climate
neutrality. This could speed up
permitting significantly by helping
solve the legal challenges related
to new wind farms more quickly.
The revised directive also aims to
clarify which permits are included
in the mandatory deadlines (two
years for new, one year for
repowered projects) for
governments to complete the
permitting process. This means
that all administrative steps, grid
permits and environmental impact
assessments (EIAs) will need to be
finalised within these permitting
deadlines. Achieving clarity on the
procedural side is crucial for
speeding up installations as it
removes uncertainty for
developers on the interpretation of
EU rules across the EU-27 national,
regional and local jurisdictions.
The revised EU renewables law will
also ensure that wind energy
development goes hand in hand
with biodiversity protection.The
amendments to the directive will
strengthen the population-based
approach to species protection,
How Europe plans to rise to the energy security challenge
while cementing the competitiveness of its wind supply chain
2
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3
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1
5
2
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2
6
2
0
2
1
2
0
1
9
2
0
2
0
2
0
2
1
8
2
0
2
2
2
0
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3
2
0
2
4
2
0
2
5
2
0
2
6
2
0
2
8
2
0
2
7
2
0
2
9
2
0
3
0
0
5
10
15
20
25
30
35
GWs
financed
in
the
EU
New capacity financed 2022 decrease Investments needed for 2030
Evolution of wind energy investments in EU-27
Source:WindEurope, 2023

which is already part of EU
environmental law. Doing so will
ensure a good working balance
between the parallel sets of public
policy interest that are renewables
and biodiversity while contributing
to Europe meeting both its climate
objectives and its energy security
goals. In addition, the revision
envisages even faster permitting
deadlines in selected ‘go-to’ areas
where biodiversity risks are minimal.
The final revision of the EU
Renewable Energy Directive is due
to be completed in mid-2023. In
the meantime, EU governments
can apply the EU emergency
permitting framework adopted in
December 2022, which confirmed
renewables as projects of
‘overriding public interest’ so long
as site location is correctly
selected and mitigation measures
are in place to protect biodiversity.
It also clarified the permits that
need to be delivered within the
mandatory permitting deadlines
for new and repowered projects,
advanced grid connections
approvals, and allowed simplified
EIAs for repowering – covering
only the additional impacts linked
to wind farm expansion. The
measures are mandatory for new
projects and new permits, but
governments could also apply
them to existing ones should they
wish to do so.
Some EU countries are already
making use of the emergency rules
and are taking ambitious steps
nationally to improve permitting.
Germany’s cabinet has already
approved and enacted most of the
emergency measures. It is applying
the concept of ‘overriding public
interest’ in court cases. France has
voted on legislation that will speed
up the expansion of renewables,
and Spain is making an effort to
fast-track the approval of wind and
solar projects stuck in a large
backlog of environmental permit
applications.
Industrial policy
Europe is also fast-forwarding its
green industrial policy. 2022 was a
difficult year for the wind energy
supply chain, with Europe’s turbine
manufacturers and suppliers hit hard
by inflation, dysfunctional trade
flows, bottlenecks in the sourcing of
materials and poor auction designs
in some EU countries.
The EU agrees that it needs a
reliable and cost-competitive wind
supply chain to achieve its energy
security goals. And that it must
continue investing in its wind
industrial base to deliver a made in
Europe clean and digital transition.
Keeping and expanding a European
wind supply chain will reduce costs
and energy bills for end consumers
while creating jobs and growth.
In response to the US IRA, the EU
presented its Green Deal Industrial
Plan in March 2023 to strengthen
Europe’s clean energy industries.
The plan contains two important
pieces of legislation for the
European wind industry which
could allow it to deploy the right
investments and volumes going
forward.
First is the Net-Zero Industry Act,
which targets the industrial
manufacturing of key technologies
and equipment that are central to
the European energy transition. For
wind, it sets an annual
manufacturing capacity target of 36
GW.The act focuses on simplifying
the permitting processes for new
factories. It also identifies strategic
dependencies across supply chains
and proposes actions to remove
existing bottlenecks and increase
supply chain resilience.
Second is the Critical Raw Materials
Act, which plays a key role in
improving the sourcing of materials
for clean energy that Europe needs.
The act explores opportunities for

GWEC.NET
50
mining and processing more raw
materials in Europe while forging
new trade deals with partners that
can diversify supply routes. It also
emphasises the importance of
recycling and reusing key materials
to help increase the resilience of
Europe’s supply chains.
All of this will be underpinned by
some degree of EU public financial
support, including, for instance,
channelling existing resources from
the EU and national Recovery Plans
towards critical supply chains.The
European Commission and
member states are discussing in
parallel a more flexible framework
for the allocation of state aid that can
support industrial competitiveness.
The EU is also considering setting
up a new EU Sovereignty Fund to
finance investments in the strategic
sectors charged with delivering the
EU Green Deal.
Electricity Market Design
Crucially, Europe is reforming its
Electricity Market Design (EMD)
this year. The current market
design has been beneficial by
facilitating the integration of large
amounts of cost-effective
renewables.
EU policymakers are under
pressure to deliver a quick reform
that alleviates the energy crisis
burden for end-consumers while
avoiding a reversal of 20 years of
European energy market
integration. The EU cannot afford to
get this wrong.
The central response to the current
crisis remains more energy supply,
in particular with more homegrown
renewable electricity generation.
Europe’s EMD must therefore send
the right investment signals to
deploy wind energy at scale and
ensure that the EU’s investment
environment for future wind farms
remains attractive.
Therefore, the existing revenue caps
on inframarginal generators must be
removed and cannot serve as a
starting point for EMD reform. In
2022, the EU adopted a temporary
emergency framework that allowed
governments to intervene
exceptionally on power markets to
control prices. Many EU
governments scrambled to
introduce revenue caps for
inframarginal power generation in an
uncoordinated fashion – some even
taxed unrealised revenues.This has
undermined investor confidence
and halted investment in renewables.
The new EMD should allow
developers to leverage the
potential of Contracts for
Difference (CfDs) and Power
Purchase Agreements (PPAs). It
should also leave space for
investors to access some market
revenue so they can meet their PPA
obligations. This will be key for
companies managing large
portfolios of energy investments
across different markets, and for
building sound financing strategies
for renewables.
Equally importantly, the new rules
must cement investment certainty.
Market scale is achieved in
countries where governments
respect the stability of existing and
awarded support schemes and
market-based arrangements, and
where governments plan ahead
and provide regulatory visibility
for the wind industry and its supply
chain with concrete wind
deployment objectives. The EU
Renewable Energy Directive
prohibits retroactive changes to
existing support mechanisms and
requires governments to outline
forward-looking auction schedules
(timeline, budget, capacity) and
technology-specific auctions to
attract investments. None of this
should be put into question as
Europe reforms its EMD.
Co-authored with WindEurope

PART 6: WILL CHINA CONTINUE TO BE THE
MARKET LEADER?

GWEC.NET
52
China is the world’s largest wind
market. The country achieved
record additions of 68.6 GW of
grid-connected onshore wind in
2020 and 16.9 GW of offshore
installations in 2021 – a miracle
driven primarily by the complete
phaseout of renewables subsidies.
Shifting from a subsidy-driven
market to a pro-renewables
market
Since 2022, China’s renewable
energy market has entered a new
stage. The support for renewables
has switched from a feed-in tariff
(FiT) model to a ‘grid parity’
model, whereby electricity
generated from renewables will
receive the same remuneration as
that from coal-fired power plants.
Nevertheless, the phaseout of
subsidies has not slowed the pace
of renewable energy development
in China. Although new grid-
connected wind capacity in 2022
was only 37.6 GW – a 21% drop
from the previous year, mainly
driven by COVID-19 restrictions –
installations of all renewables
including hydropower, wind, solar
and biomass recorded a stellar
year, accounting for 76% of the
country’s newly installed power
generation capacity. China’s
renewable energy capacity will
continue to grow as the country
strives to meet at least half of its
incremental power demand growth
with renewables under the 14th
Five-Year-Plan.
Political commitment paves the
way for long-term development
Since China’s President Xi Jinping
announced the ‘30-60’ target in
2020 – to achieve peak emissions
by 2030 and carbon neutrality by
2060 – China has started working
on the long-term goal of creating a
new type of power system with
renewables at its core. Speaking at
the 20th Party Congress Report in
2022, the President said that the
planning and construction of the
new energy system should be
accelerated, providing a blueprint
for energy security and low-
carbon, green development.
By the end of 2022, standing at
1,213 GW, China’s installed
renewable energy capacity
surpassed coal power for the first
time. Renewable energy now
accounts for 47.3% of the country’s
total power generation capacity,
with wind and solar power
generation, at more than 1,000
TWh, providing 13.8% of China’s
electricity consumption.
Although renewable energy is
growing fast, coal power
generation will still play a crucial
role this decade. A severe drought
last summer saw Sichuan province
suffer electricity shortages due to
its reliance on hydropower. New
coal-fired power projects in
Sichuan were approved late last
year to prevent a recurrence of this
situation but will be built next to
large-scale renewable energy
facilities so that the flexibility
offered by thermal power plants
can support renewable energy
integration.
How the 14th Five-Year Plan will
support renewables
From the Gobi Desert to the sea,
and from the Tibetan Plateau to
the vast plains, several 10 GW-
level wind and solar farms have
been completed and put into
operation, such as Jiuquan in
Gansu, Hami in Xinjiang, and
Zhangjiakou in Hebei. Gobi and
other desert areas, including the
upper reaches of the Yellow River,
Will China continue to be the market leader?

Part 6: Will China continue to be the market leader
the Hexi Corridor, the ‘Ji’ bend of
the Yellow River and Xinjiang, are
seeing the construction of seven
new energy bases. Hydro, wind
and solar installations are
planned for southeast Tibet,
Sichuan,Yunnan, Guizhou and
Guangxi, with a number of
offshore wind power bases also
planned.
The government plans to support a
number of demonstration projects,
such as deep-water wind, high
efficiency solar cells, energy
islands, large-scale renewable
hydrogen, hybrid energy solutions
and smart microgrids in order to
promote technological innovation.
In Inner Mongolia, seven energy
storage technology verification
platforms, including solid-state
lithium-ion batteries, sodium-ion
batteries and flywheel energy
storage, are under research and
development.
Zero-carbon industrial parks being
built across the country will require
large amounts of renewable
energy. Data centres are being
located in the vicinity of huge wind
farms in northern China to use
green electricity locally.
Long-term plans for green
hydrogen production are in place
in several provinces. Leading
energy companies have
established specialist subsidiaries
to develop hydrogen technology
and business. In 2022, North China
Electric Power University started
offering a major in hydrogen
science and engineering.
Distributed wind projects will be
promoted in the vast rural areas of
China’s central and southeastern
regions. It is estimated that 10,000
turbines, totalling 50 GW, will be
installed near 5,000 villages during
the 14th Five-Year Period.
How the local supply chain will
cope with growth
With more than two decades of
development, China has a well-
established supply chain for the
wind power industry. The
production of wind turbine
nacelles and key components
accounts for 60-70% of the global
market share (see Part 2), which
makes China a crucial contributor
to the global response to climate
change.
Qinghai
Nei Menggu
Hunan
Gansu
Giant onshore wind/solar
energy bases
Giant integrated energy bases
(hydropower/wind/solar)
Offshore wind bases
China’s 14th Five-Year Period renewable energy development plan
Source: NDRC, NEA, 2021

GWEC.NET
54
More than 15 wind turbine
manufacturers are active in China.
Although the domestic market is
large, competition has become
increasingly fierce, with record-low
prices being reported in the past
two years. To survive the domestic
price war, Chinese OEMs started
exploring opportunities overseas.
Additionally, as the Chinese
government announced in
September 2021 that it would stop
funding new coal projects abroad,
this will drive wind turbine exports
in the long term as the large
Chinese EPC contractors will likely
shift their investment from thermal
power plants to renewable
projects.
Leading wind turbine technology
Price pressure has acted as a
driver of technology innovation,
as Chinese wind turbine OEMs
have continued to launch new
turbines with greater power
rating and bigger rotors to remain
competitive. Over the past
two-to-three years Chinese
turbine OEMs like Mingyang,
Goldwind and Haizhuang have
released offshore turbines in the
16–18 MW range. In February
2023, Envision launched the
EN-220/10 MW model and two
weeks later SANY rolled out the
230/8-11MW prototype in Beijing
– the largest onshore wind
turbine in the world.
The Chinese wind power
equipment industry has achieved a
historic leap – from ‘following’ to
‘running alongside’ and now
‘leading’ – in wind technology
development.
Ambitious targets will boost
offshore wind development
Construction of several 10 GW
offshore wind bases is anticipated
off the eastern coast, while a
number of provincial and
municipal governments have been
working on offshore wind
development plans since 2020.
The market potential for offshore
wind is growing and the local
industry is ready to support annual
installations of approximately 15
GW. Last November, at the Global
Offshore Wind Summit-China 2022
co-organised by GWEC in Haikou,
Hainan, the Chinese wind industry
released an initiative that calls for
100 GW of offshore wind in China
by 2025, 200 GW by 2030 and
1,000 GW by 2050. If this happens,
China will make up 50% of the
Global Offshore Wind Alliance’s
global offshore wind target for
2050.
China’s first floating offshore wind
turbine, the Three Gorges Pioneer,
was installed in July 2021 in
Yangjiang, Guangdong. Two demo
platforms have been installed
Offshore
Onshore
1000
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4000
5000
6000
7000
8000
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Q
2
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0
Q
1
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2
0
Q
4
2
0
2
1
Q
3
2
0
2
1
Q
2
2
0
2
1
Q
1
2
0
2
1
Q
4
2
0
2
2
Q
3
2
0
2
2
Q
2
2
0
2
2
Q
1
2
0
2
2
Q
1
2
0
2
3
Average tender prices of wind turbines in China (CNY/kW)
Note: Prices are based on date of tender and include wind tower
Source: China Bidding Centre, February 2023

2
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e
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0
3
0
e
Offshore
Onshore
0
10
20
30
40
50
60
70
80
Chinese wind market development (GW)
Hainan
Hong Kong
Shenzhen
Guangzhou
China’s first floating wind turbine
China’s first floating wind platform with a water depth
of more than 100 metres and an offshore
distance of more than 100 kilometres
China’s second floating wind turbine
1 GW project: phase 1 (200 MW) to be
commissioned by 2025, phase 2 (800 MW)
by 2027
Floating offshore wind projects in Southern China Sea
since, and a couple of projects
have been announced. China’s first
floating wind platform with a water
depth of more than 100 metres and
further than 100 kilometres from
shore, the ‘CNOOC Guanlan’ – will
be operational in June 2023. It will
provide electricity for the
Wenchang offshore oilfield in
Hainan.
In addition to these demonstration
projects, China also has a 1 GW
floating offshore wind farm
planned by 2027 – potentially the
first project of this scale to be
installed globally. Planned for a
location off Wanning, Hainan
province, the first phase completed
a feasibility study in 2022. As
Chinese projects are usually
announced with very short lead
times, more floating wind projects
with expected commissioning
dates before 2030 may be
announced in the coming years.
China will continue to lead global
wind power development
Following its ‘30-60’ pledge, the
Chinese government committed to
non-fossil fuels achieving 25% of the
country’s primary energy mix by
2030. In February 2023, the National
Energy Administration (NEA)
predicted that generation from wind
and solar power will double by 2025 Source: GWEC Market Intelligence, March 2023

GWEC.NET
56
from 2020 levels, with renewable
energy accounting for more than
80% of total new electricity
consumption by the same year.
To reach these targets, 250–300
GW of wind power capacity needs
to be added between 2021 and
2025. Since a total of 758 GW of
wind and solar power has already
been grid-connected by the end of
2022 – and more than 80 GW of
wind turbine orders were
announced and awarded in 2022
– GWEC Market Intelligence
expects China to hit its 1,200 GW
solar and wind target by 2025, five
years ahead of schedule.
With annual installations of 70–80
GW for the rest of this decade,
there is no doubt that China will
remain the world’s largest wind
power market.
With annual installations
of 70–80 GW until
2030, China will remain
the world’s largest
wind market

PART 7: HOW TO ACHIEVE A JUST TRANSITION

GWEC.NET
58
Part 7: How to achieve a just transition
A just and equitable energy
transition (JET) is indivisible from a
successful pathway to global
net-tzero emissions. Because
people are at the centre of the
energy transition, communities
cannot be left behind in the effort
to mitigate harmful climate change.
As a leading agent of the global
energy transition, the wind
industry must play an active role in
transitioning workers from carbon-
intensive sunset industries and
encouraging their entry into the
renewables sunrise industry. A
wind and renewables-driven JET
promotes the socioeconomic
welfare of all affected workers and
communities.1,2
Investment and education are key
drivers of a JET. Investment can
facilitate education, support
displaced workers and create
demand for wind energy workers
along the supply chain. Education
can range from retraining or
re-skilling programmes to wider
community outreach.
JET received much attention at
COP27 last November signalling a
clear appetite from the climate
change community for a people-
centred transition. Looking ahead,
this is essential both to meet
net-zero scenario pathways and to
ensure that the necessary
workforce is available to enable
the massive expansion required of
the global supply chain.
The role of the wind industry in
enabling a JET
Energy transition pathways must
be designed to incorporate
countries’ emissions, financing
needs and energy profiles –
especially fossil fuel
dependencies. A multidimensional
transition must take place at a
national level, with appropriate
policy support, and locally through
value creation that ensures the
dividends of a JET are fed down to
impacted stakeholders.
There is often little understanding
at the local level of what a JET
means for communities. The wind
energy industry can increase local
awareness by highlighting the job
Part 7: How to achieve a ‘just transition’
Rare earth demand by end-use sectors and breakdown of magnet demand by mass, 2020
1.ILO, 2015, Guidelines for a just transition towards
environmentally sustainable economies and societies
for all
2.
ILO, 2022, Just Transition Policy Brief, Gender equality,
labour and a just transition for all
3.
IRENA (2017), Leveraging local capacity for
onshore wind
4.
IRENA (2018), Renewable Energy Benefits: Leveraging
Local Capacity for Offshore Wind
Catalysts
Magnets Others
Polishing agents
EVs
Consumer electronics Air conditioning
Wind turbines Others
Breakdown of the
29% of demand
represented by
magnets
29%
20%
11.4%
1.75%
2.5%
7.55%
5.8%
13%
38%
Source: IRENA, 2022

creation potential of viable projects.
Renewable energy employs
people of all trades and levels
across the full value chain, from
project planning to
decommissioning. IRENA’s
analysis3
shows that a 50 MW
onshore wind facility creates
opportunities for more than
144,000 person-days, and a 500
MW fixed-bottom offshore facility4
for around 2.1 million person-
days.5
The analysis also shows that over
60% of the workforce in onshore
wind, and over half in offshore
wind, requires minimal formal
training. Science, technology,
engineering and mathematics
(STEM) graduates make up around
28% of the onshore wind workforce
– 21% for offshore wind. Highly
qualified non-STEM professionals
such as lawyers, logistics experts,
marketing professionals and
experts in regulation and
standardisation account for roughly
5% and 20% respectively, while
administrative personnel make up
4% and 8%, respectively.
The proportion of women in the
renewable energy workforce is
estimated at around 32%, with
21% in wind energy.6
GWEC is in
the process of updating these
figures and will report on
progress later this year. As in
other sectors, there is a higher
proportion of female workers in
more junior roles.
Upstream supply chain impacts
As the wind energy industry
grows, so will its impact on several
sectors and communities. With up
to 90% of a wind turbine’s mass
being made of concrete, iron and
steel, there will be an increase in
demand for these three critical
materials as installed wind
capacity grows.7
Increased wind turbine
manufacturing will also lead to
greater demand for REEs – a
trend compounded by similar
pressures from other renewable
energy technologies and other
sectors. Increased demand is
expected for REEs including
neodymium, dysprosium,
praseodymium and critical
minerals such as copper, nickel
and zinc.8
5.
IRENA (2019), Future of wind: Deployment, investment,
technology, grid integration and socio-economic aspects
6.
IRENA (2020),Wind Energy: A Gender Perspective
7.
WindEurope, 2022, response to the EU’s consultation on
the Raw Materials Act
8. GWEC (2022), Global Wind Report
9.
IEA (2021), The Role of Critical Minerals in Clean
Energy Transitions

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60
Demand for REEs under
sustainable development
scenarios is forecast to increase
fourfold by 2040.9
The wind
energy industry must operate
sustainably and with good
governance across the supply
chains for these materials,
protecting disadvantaged or
vulnerable mining communities.
South Africa and Indonesia: the
rise of the JET Partnership
The Just Energy Transition
Partnership (JETP), announced at
COP26 in November 2021, is a
collaborative agreement between
South Africa and France, Germany,
the UK, the EU and the US to create
a synergy between the global
South and the global North. The
JETP model includes 8.5 billion
USD in funding coupled with
access to technical expertise for
knowledge-sharing.10
South Africa has been a frontrunner
in JET engagement, acknowledging
it in the country’s climate
commitments (NDCs) under the
Paris climate agreement as early as
2015.11
While it understands the
need for a JET, the government has
so far failed to sufficiently engage
with the communities that are most
affected – the highly coal-
dependent regions.
The Planning for Climate
Commission (PCC) has made
significant progress in accelerating
a JET dialogue through a series of
multi-stakeholder consultations.
The PCC developed a just
transition framework that seeks to
engage in tackling various aspects
of the energy transition including
social support.12
These
consultations are ongoing and
should continue in order to ensure
that the core principles of what the
just transition framework seeks to
do are fed down the value chain to
all those affected.
Multilateral social dialogue is
crucial to involving and engaging
all stakeholders in a JET.
Including the communities most
affected by the coal phaseout,
educating and supporting them
through the transition, will make
the difference between
conceptualisation and
implementation of a JET.
Other countries will use similar
JETPs as a financing mechanism
for JET implementation. The G7
alluded in 2022 to using JETPs to
Mineral intensity for wind power by turbine type
10.
Annex to G7 Leaders Statement Partnership for
Infrastructure and Investment
11. https://www.wri.org/update/south-africa-strong-
foundations-just-transition
12. https://www.climatecommission.org.za/just-transition-
framework
0 50 100 150 200 250
Zinc
Copper Chromium
Manganese
Molybdeum
Nickel
Dysprosium
Neodymium
Terbium
Praseodymium
Others
Rare earths
0 3000
Overall mineral intensity (kg/MW) Use of rare earth elements (kg/MW)
6000 9000 12000
EESG
PMSG
PMSG
DFIG
Direct
drive
Gearbox
Source: KIM Tae-Yoon, IEA/STO/ESIO

support a JET in African and Asian
countries such as Indonesia, India,
Senegal and Vietnam.13
At the Bali
G20 summit, held in November
2022, Indonesia launched its JETP
supported by the International
Partners Group (IPG), which
includes the US, Canada, Japan, the
EU, the UK, Norway, Germany,
France, Italy and Denmark. Over a
period of three to five years, the
Indonesian JETP promises to
mobilise 20 billion USD worth of
investment.14
Increased investment will only
drive a JET if the funding is actually
fed into localities to accelerate
renewables projects. One
challenge the wind sector and
other renewables are facing is a
lack of agency, with funding being
set out but not fed into the project
pipeline. This must be actively
challenged: if local projects and
infrastructure are not implemented,
the JETP risks losing credibility.
If coal is to be phased out in
coal-dependent areas, the supply
of renewables needs to grow
significantly. To achieve this,
countries need to create enabling
regulatory and economic
conditions that support and
facilitate not only the deployment
of renewable energy assets but
also their supply to the grid. This
will underpin the case for a coal
phaseout driven by the credible
prospect of a sufficient volume of
clean energy to replace it.
The South Africa initiative has the
potential to pave the way for
longer-term climate action through
policy instruments like the JETP.
Other coal-dependent countries
can look to South Africa to see the
links between a just transition,
achieving national decarbonation
goals, and meeting NDCs .
United States and the Inflation
Reduction Act: investment in
training and local supply chains
The Biden Administration’s
Inflation Reduction Act (IRA)15
is a
national policy framework that
promises to further the just
transition by enabling local
production and job creation
through an unprecedented array
of measures facilitating investment
into good jobs and mitigation
measures that protect impacted
workers and communities.
By specifying the workforce and
communities as key stakeholders
that should benefit from this
investment, it sends a clear signal to
investors and civil society that a
green economy can provide stability.
States in the US have typically taken
a localised approach to assessing
the impacts of the energy transition
on their workforce. The growth of
the offshore wind sector is opening
up opportunities for workers in
other industries to pursue a career
in the green economy – facilitated
by reskilling and training
investment, alongside stakeholder
engagement.
Examples of this include:
l
BOEM Carolina Long Bay
offshore wind auction: bidders
are awarded a 20% monetary
credit to support workforce
training programmes to develop
the local supply chain.16
The total
credit awarded is around 42
million USD.
l
The North America Building
Trade Union (NABTU) and
Ørsted: a Project Labour
Agreement (PLA) brings
together the private sector and
the unions to help the US
workforce meet the
requirements of the offshore
wind farm supply chain.17
Policy recommendations
1.
Commit to a diverse, equitable
and inclusive workforce
through outreach.
Mainstreaming diversity, equity
and inclusion in the workforce
requires commitment and action
across company segments, from
human resources to marketing
to senior leadership. The wind
sector should be seen as an
attractive and welcoming place
to work at different career
stages.Youth outreach and
education can ensure that the
industry’s diversified job
opportunities are understood,
particularly in early-stage wind
countries. Diversity should
encompass gender, ethnicity
and physical ability. A cultural
change in companies will enable
them to leverage the talent of
13. https://www.g7germany.de/resource/blob/974430/2057928/1315842ed9de069fa1be82dab18dabb2/2022-06-28-leaders-communique-
executive-summ-data.pdf?
14. https://www.gov.uk/government/news/indonesia-just-energy-transition-partnership-launched-at-g20
15. https://www.epa.gov/green-power-markets/inflation-reduction-act
16. https://www.doi.gov/pressreleases/biden-harris-administration-announces-winners-carolina-long-bay-offshore-wind-energy
17. https://nabtu.org/press_releases/nabtu-orsted-sign-landmark-mou/
Diversity should encompass
gender, ethnicity and
physical ability

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women and people from
minorities.
2.
Drive social dialogue and
increased stakeholder
engagement both nationally
and locally. Creating space for
social dialogue and increasing
stakeholder engagement
supports social cohesion and a
common understanding of the
challenges and opportunities
ahead. Stakeholders include
displaced workers, residents of
communities hosting projects
and members of affected
communities such as the fishing
industry for offshore wind. The
need to discuss a JET is well
understood but the dialogue
needs to translate into national
ambition, alongside transparent
local engagement, for
communities to understand and
feed into the actions that will
affect them.
3.
Promote public-private
collaboration to create value
locally. Regions that depend
on the production of fossil fuels
for revenue may face
economic displacement in a
rapid phaseout. On the path to
decarbonising their energy
systems, they must be
encouraged to transition to
more sustainable local supply
chains and jobs. Governments
and the wind industry should
collaborate to review local
industrial supply chains and
foster the creation of decent
jobs. Schemes to incubate
businesses and capabilities for
the wind sector, such as
favourable loans and the
promotion of industrial
clusters, will support the
creation of viable local supply
chains.
4. Tailored reskilling/
retraining pathways to
transfer from carbon-
intensive industries to wind
industry jobs. Acknowledging
varying skill sets and
providing tailored training
programmes will reduce the
barriers to entry into the wind
workforce. Having identified
viable projects, the public
sector and the wind industry
should work together to
identify communities of need
and match them with
anticipated workforce gaps.
By supporting career
progression pathways for
fossil-fuel workers into
renewable energy, the public
sector will encourage labour
mobility and upskilling.
5.
Investment to facilitate
retraining, reskilling and
sustainable job creation.
Governments and the private
sector should provide funding
towards training and reskilling
programmes that can benefit
them both. Investing into the
workforce will benefit the
economy at large while
enabling the private sector to
tailor skills to its project
requirements. The investment
will pay off in multiple ways and
boost the green economy.
6.
Regulations in mining and
extractive communities to
ensure an ethical work
environment. National policies
must ensure that working
conditions do not allow the
exploitation of workers, and that
mining communities for REE
and other critical materials are
sustainable. Because these
materials come from a limited
number of countries, targeted
regulation is needed to protect
the workforce and promote
growth in the wind energy
sector. Standards must be set to
avoid greater demand leading
to more exploitation, and strictly
enforced to protect the rights of
workers and provide them with
decent working conditions.

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Case Study: Global Alliance for Sustainable Energy
The Global Alliance for Sustainable
Energy is an independent
organisation that aims to make the
renewable energy sector fully
sustainable throughout its value
chain. The alliance brings together
NGOs, utilities, suppliers,
developers and end-users to tackle
the climate emergency and reach
net zero while improving people’s
quality of life.
The Alliance’s scope of work spans
supply chain decarbonisation,
circular design criteria, human and
labour rights, biodiversity, and
more general progress towards a
just and sustainable energy
transition.
Since its inception in 2022, the
Alliance’s work has been focused
on Circular Design Criteria.
The Circular Design Working
Group’s position paper outlines a
circular design strategy that aims
to minimise waste and pollution
while preserving resources. The
world’s current linear economy
model, defined by a take-make-
dispose approach – which results
in the depletion of natural
resources, waste generation and
environmental degradation – must
evolve into a circular economy
system that considers the entire
lifecycle of a product, from raw
material sourcing through to ‘end
of life’ reuse, repurposing or
recycling of component parts.
The Alliance’s ambition is to be
the missing link that connects all
the relevant participants in the
energy sector to improve
transparency, circularity and the
overall sustainability of the sector
by widely spreading the definition
Global Alliance for Sustainable Energy
Human/Labour rights
Defined industry-wide sustainability standards and KPIs
FOCUS AREAS
MEMBERS
OUTCOME
Secretariat
Industrial members
Advisory members Supporting member
Supply Chain
Decarbonisation
Circular Design
Criteria Biodiversity
Structure of the Global Alliance for Sustainable Energy

of sustainability standards and the
adoption of best practices.
The following are examples of
elements put forward by the
alliance for integrating into tender
processes between suppliers and
clients:
l
A ’bill of materials’ and
Environmental Product
Declarations (EPD) / Life Cycle
Assessments (LCA) to be used
as metrics to reward suppliers
aligned with requirements such
as limits or bans on specific raw
materials, thresholds for
recycled raw materials, CO2 and
water footprint.
l
Traceability information to
guarantee the complete visibility
of all the actors involved in the
supply chain.
l
A raw material assurance
framework to drive visibility and
adoption of materials that are
transparently certified according
to international industry
standards.
Alliance members have set the
following targets based on the
recommendations put forward:
l
100% of new equipment
produced/acquired with Certified
EPD/LCA with explicit bill of
materials by the end of 2024.
l
Traceability and auditing for at
least two key raw materials used
in one main component by the
end of 2024.
l
Traceability and auditing for all
applicable key raw materials
used in one main component by
the end of 2025.
l
One key raw material used in
one main component to be
certified by the end of 2024.
l
All applicable key raw materials
used in one main component to
be certified by the end of 2025.
Complementary to the Alliance’s
Circular Design work is a focus
on supply chain decarbonisation
across scopes 1, 2 and 3, driven
by the need to establish a
common understanding between
utilities and suppliers on
climate-compatible buying
strategies.
The Global Alliance for
Sustainable Energy was initially
convened by the Enel Foundation.
It includes industrial members
Enel Green Power, Energias de
Portugal, Adani Renewables,
Electrobras, Iberdrola, NTPC,
Goldwind, Nordex Acciona,
Prysmian Group, Trina Solar,
Risen, JA Solar and 3M.
Advisory members include
Student Energy,Youth Climate
Leaders, Politecnico di Milano and
Politecnico di Torino. It counts
IRENA’s Coalition for Action as a
supporting member.
As of 2023, GWEC and the Global
Solar Council are jointly running
the Secretariat.
Utilities and suppliers must establish a common
understanding on climate-compatible buying
strategies to drive supply chain decarbonisation

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Case Study: Women in Wind
The wind energy industry is still
heavily male-dominated, with only
21% of the global wind energy
workforce being women – lower
than the renewables sector overall
and lower than the oil gas
industry – according to the
landmark Wind Energy: A Gender
Perspective report, published in
2020 by the Women in Wind
Global Leadership Program (WiW)
in partnership with IRENA.1
While GWEC and its partners are
proactively working to make
progress on this – and the data is
being updated – the report, which
was based on a survey of more
than 1,000 people working in wind,
revealed a significant leadership
imbalance, with women occupying
just 8% of senior management
positions in the global wind energy
sector. Most women in the sector
are employed in administrative and
non-STEM roles.
Women in Wind (WiW) was formed
in 2019 to address this gap in the
wind industry. It aims to support
and encourage the advancement of
women in the wind energy sector
by providing them with the
necessary skills and opportunities
to become leaders in their field.
Looking ahead,WiW aims to lead
by example and to work with
companies within the wind sector
to actively implement the
principles of equality by curating
organisation-wide policies that
promote gender diversity in areas
such as recruitment, and career
progression for women at all levels.
This will require regular reporting
to ensure progress is well
communicated, visible and fully
accountable.
By addressing the
underrepresentation of women in
leadership positions in the wind
energy industry, WiW also seeks
Women in Wind
1. https://www.irena.org/publications/2020/Jan/
Wind-energy-A-gender-perspective
WiW supports and encourages the advancement
of women in the wind energy sector

to drive innovation and growth in
the sector, and to encourage a
more diverse and inclusive
culture.
Programme methodology
Currently recruiting its fifth cohort,
WiW is an intensive 12-month
programme covering a range of
learning and development
activities including online courses,
workshops, mentoring and
networking events.
The programme has been
designed to be flexible, allowing
participants to fit their learning and
development activities into their
existing work schedules.
Key outcomes
Increased representation in
leadership positions
As a result of the programme,
several participants have been
promoted to leadership positions
within their organisations, and
many others have taken on
additional responsibilities and
expanded their professional
networks.
Improved leadership skills
and confidence
Participants have reported a
marked improvement in their
leadership skills and confidence,

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68
with many citing increased
visibility, better communication
skills, and a more positive outlook
as key benefits of the
programme.
Increased diversity and inclusivity
The programme has helped to
raise awareness of the importance
of diversity and inclusivity in the
wind energy sector, and has
provided a platform for
participants to share their
experiences and best practices.
Stronger professional networks
Participants have established
strong professional networks with
their peers, mentors and industry
leaders, which provides valuable
opportunities for collaboration and
support.
Over the past five years,WiW has
succeeded in supporting the
advancement of women in the
wind energy sector and
encouraging a more diverse and
inclusive culture in the industry.
The programme has provided
participants with the skills and
opportunities they need to
become leaders in their field, and
has helped increase the
representation of women in
leadership positions in the wind
energy industry.
Van Nguyen Thanh
Head Of Engineering And
Construction, UPC Renewables
Vietnam Management LLC
Van Nguyen managesVietnam
projects at UPC Renewables. Since
June 2018, she has worked on
projects through various stages,
from development to construction,
including Lac Hoa and Hoa Dong.
Van is currently leading on two 50
MW projects,Tran De and Song
Hau. Her project control team
saved up to 9 million USD during
contract negotiation and claim
resolution. She holds a master’s
degree in International Project
Management from Glasgow
Caledonian University, Scotland.
Her career goal is to promote
clean energy and to be part of a
team that inspires theVietnamese
people to transition away from
coal and thermal energy.
Kholoud Bakry
Maintenance Planning
Reporting Engineer,Lekela Power
Kholoud Bakry holds a master’s
degree in Renewable Energy
Engineering from the British
University in Egypt. She started
her career in the renewable
energy field by joining the Arab
Program for Sustainable Energy
Youth with the Regional Center
for Renewable Energy and
Energy Efficiency. Kholoud
joined Lekela in early 2020,
working on the construction of
Lekela’s utility-scale 250 MW
wind power project, West Bakr
wind farm in Egypt. She is
currently working on site as the
Maintenance Planning and
Reporting Engineer for WBWF
with a focus on monitoring the
performance of the facility
during its operational phase.
Profiled participants from the 2022 cohort

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Focus on offshore wind
As a scalable, affordable and
commercially available energy
technology with the capacity to
produce tremendous amounts of
power, offshore wind has the
potential to rapidly displace fossil
fuels – delivering economic growth
and bolstering energy security.
Offshore wind also opens up the
opportunity to scale the production
of green hydrogen and power-to-X,
thereby aiding in the
decarbonisation of energy-
intensive sectors. As a major
source of green jobs, from
manufacturing of turbine
components through to installation
and operation, offshore wind is
increasingly seen as a positive
economic driver.
In 2021, GWEC and IRENA signed
a UN Energy Compact, pledging to
work together to deploy the 2,000
GW of offshore wind needed by
2050 to reach net zero.1
This
requires a huge upsurge in
installations, with 35GW of offshore
wind to be added annually in the
coming decade, starting from a
global total of just over 60 GW
today. Only China has so far shown
the ability to deliver offshore wind
at this scale and speed.
Alongside net-zero targets, many
countries are setting specific
offshore wind targets – with at least
16 governments2
setting or
increasing them since the 2022
edition of this report. This includes
subnational jurisdictions like the
Australian state of Victoria (9 GW
by 2040) and the Canadian
province of Nova Scotia (5 GW by
2030).
In September 2022, energy
ministers from the nine members
of the North Seas Energy
Cooperation (NSEC) agreed to
reach at least 260 GW of offshore
wind capacity by 2050. China
targets 100 GW by 2025, 200 GW
by 2030 and 1,000 GW by 2050.
South Korea’s 10th Basic Plan,
released in December 2022,
targets 14.3 GW by 2030.
Despite setting such ambitious
targets, countries and governments
are still struggling to turn them into
action at the speed needed to fuel
the global energy transition.
Offshore wind is a complex
infrastructure requiring detailed
knowledge and experience of
robust marine governance
frameworks, electricity market
design, and supply chain and
industrial policy. GWEC observes
that many markets are still lacking
adequate policy and regulation to
facilitate offshore wind
development. At the same time,
there is a great deal of global best
practice to learn from, especially
through public-private
partnerships, to help nascent and
emerging markets speed up the
regulatory process.
There have been some notable
achievements in a number of
emerging offshore wind markets.
Australia launched its first offshore
wind leasing round in the
Gippsland area. The US market
continues to expand rapidly, with
the landmark Inflation Reduction
Act (IRA) heralding a new era in
the international race for offshore
wind and a green economy.With a
new government in place, Brazil is
making great strides in
establishing an offshore wind
industry (see page 84). Meanwhile,
offshore wind in India is moving
forward rapidly (see page 87).
Offshore wind: turning targets into turbines
1. UN Energy Compact
2. South Korea, China,Victoria, Nova Scotia, Belgium,
Denmark, France, Germany, Ireland, Luxembourg, the
Netherlands, Norway, Sweden, Portugal, New Jersey,
Louisiana

Progress has been less marked
elsewhere.Vietnam, with 599 GW
of offshore wind potential, faces
major policy uncertainty as the
Power Development Plan 8 (PDP8)
targeting 7 GW of offshore wind by
2030 remains in draft form since its
release in March 20213
.Vietnam’s
Ministry of Industry and Trade
(MOIT) is seeking to develop an
auction framework for offshore
wind but regulations on site
surveying and marine spatial
planning are unclear.
In the past year, the Philippines
lifted restrictions on foreign
ownership in renewable energy
and awarded more than 50 wind
energy service contracts for more
than 40 GW of offshore wind
capacity. However, the government
has yet to draft the rules and
regulations governing the activities
of offshore wind farms, from
pre-development to operation.
More mature markets like Japan,
Taiwan and South Korea have basic
policy frameworks that enable the
initial deployment of offshore wind
projects but lack robust policy,
predictable project pipelines and
the policy infrastructure for
massive scale-up.
There were high hopes for Japan
following the launch of its First
Vision for the Offshore Wind Power
Industry in 2020. It has since
started drawing out designated
sea areas that will be dedicated for
general auction. However,
concerns have been raised about
the transparency of the selection
criteria for the offshore tender,
compounded by lengthy
Environmental Impact Assessment
(EIA) timelines, largely stemming
from local fishing community
resistance.4
GWEC welcomes the
government’s intention to move to
a central system of allocation and
stands ready to support these
efforts.
Taiwan’s Round 3.1 was highly
contested with seven offshore wind
projects being awarded to nine
developers. However, concerns
persist about auction design,
3. Global Wind Report (GWEC, 2022)
4. Japan’s Offshore Wind Faces High Risks on the High
Seas (BNEF
, 2019)

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72
including an unrealistically low
price cap and poor flexibility in
terms of the localisation
requirement.
Vestas recently invested 300
million USD in South Korea5
,
confirming the country’s
increasing attractiveness as the
next high-potential offshore wind
market. Despite a relatively mature
supply chain, South Korea has yet
to finalise a one-stop-shop (OSS)
bill that would truly kickstart
offshore wind development.
Public private partnerships will
accelerate deployment
Accelerating offshore wind
globally at the scale required to
deliver on the energy transition will
require unprecedented efforts
from both governments and the
private sector, working together in
partnership.
As the test bed of large-scale,
commercial offshore wind
deployment, Europe has enabled
the industry to acquire
considerable knowledge and
expertise. The cumulative offshore
wind experience will advance
across a variety of structures
including regions, states and
countries with different demand
profiles and growth aspirations as
more and more areas look to build
their offshore wind capacity. This
calls for initiatives that facilitate
skills and knowledge transfer, and
for national governments to move
away from ‘business as usual’
approaches. Strengthening
collaboration through public-
private partnerships is the key to
closing the gap between reality
and ambition by building on
existing industry strength to unlock
the world’s offshore wind potential
and enable global scale-up.
The UK’s Offshore Wind Sector
Deal6
is an attractive model that
brings the government and
industry together, each with clear
roles and responsibilities, to
overcome challenges to offshore
wind development. The sector deal
sets out collaboration across areas
such as supply chain growth,
system integration, skills and future
workforce. The Offshore Wind
Growth Partnership7
sits alongside
the sector deal as an industry-
funded long-term business
transformation programme that
promotes collaboration across the
supply chain to improve
productivity and facilitates shared
growth opportunities between
developers and the supply chain.
The Global Offshore Wind Alliance
(GOWA)8
, a global diplomatic
initiative launched at COP27 by
Denmark, IRENA and GWEC, aims
to create a multi-stakeholder
community to achieve 380 GW by
2030 and beyond (see page 79).
Conditions for accelerating
offshore wind development
Industry and governments can
work together to unblock
bottlenecks and accelerate
offshore wind deployment through
existing technologies and robust
policy frameworks.
Industry and governments can work together
to accelerate deployment through existing
technologies and robust policy frameworks
5. https://www.koreaherald.com/view.
php?ud=20230119000218
6. https://www.gov.uk/government/publications/
offshore-wind-sector-deal
7. https://owgp.org.uk/
8. https://www.irena.org/Energy-Transition/Partnerships/
GOWA

GWEC has identified some urgent
next steps that we recommend
governments take if they are to
take full advantage of the energy
independence and socioeconomic
benefits that offshore wind can
bring.
Permitting
Globally, offshore wind projects
typically take up to nine years to
move from early development
stage to full commissioning9
. The
bulk of this time is spent in the
permitting and consenting stage,
with timelines stretching even
further when there are barriers or
delays in the permitting process10
.
Generally, once permitted, large-
scale offshore wind projects can
be constructed very quickly –
typically in two years, depending
on project size.11
Done right, effective permitting
regimes can unlock significant
amounts of offshore wind capacity,
enabling it to contribute to
economic growth, as well as to the
provision of large-scale,
homegrown clean electricity.
Holistic approaches to permitting
can also help capture benefits and
opportunities related to
biodiversity and nature
conservation, ensuring the wind
industry continues to be a leader
in delivering positive
socioeconomic outcomes for all
communities. Effective permitting
relies on streamlined regulatory
frameworks and a coordinated
approach within a country,
including models like a an OSS
approach, the open-door scheme,
and fast-track procedures.
Establishing a single contact point
will ensure a smooth and
administratively lean process from
consenting through to
decommissioning. The concept of
an OSS has long been used in
mature European markets like the
UK and the Netherlands. Learning
from European best practices,
other countries are now starting to
adopt this approach. In 2022, Brazil
introduced an OSS system through
an information portal that manages
offshore areas used for power.12
South Korea’s National Assembly
has been discussing a proposed
OSS Bill13
to make progress on the
9. GWEC, Five Point Plan (2022)
10. GWEC’s Statement on Implementing Vietnam’s PDP 8 Target and Net Zero Commitment (2022)
11. Joint Statement by GWEC and the Global Solar Council at the G20 Investment Forum on Energy Transition (2022)
12. Ordinance N.3 of 19 October 2022, https://www.in.gov.br/en/web/dou/-/portaria-interministerial-mme/mma-n-3-de-
19-de-outubro-de-2022-437756126
13. Special Act on Offshore Wind Power Development (SAOWPD)

GWEC.NET
74
current system, which requires
offshore wind developers to spend
up to ten years or longer
consulting 29 pieces of law across
10 ministries, according to the
SFOC14
. In Vietnam, an OSS model
has been mooted, grounded in the
National Steering Committee on
Marine Economic Development
established in 2020, chaired by the
Prime Minister.15
Fast-track permitting procedures
are also helpful. In December
2022, the European Council
agreed on accelerated permitting
rules for renewables in the
REPowerEU.16
The updated policy
creates dedicated ‘go-to’ areas for
renewables including shortened
and simplified permitting
processes in areas with lower
environmental risks. For renewable
go-to areas, the Council agreed
that permit-granting processes
should not take longer than one
year for onshore – and two years
for offshore – renewable energy
projects, to be extended by up to
six months in extraordinary
circumstances.
Leasing
A significant barrier for the global
wind industry is a scarcity of sites:
seabed allocation is rarely linked
to offshore wind or climate targets,
leading to overheated seabed
markets in some countries or
regions, as a result of lengthy,
decentralised approaches to
seabed allocation and constraining
auction caps. The ‘lumpy’
procurement that results from this
approach can limit supply chain
growth. Most jurisdictions also fail
to consider the environmental
impacts from competing uses of
the sea in a holistic way. In the
absence of a strategic approach to
spatial planning, wind projects can
Seabed allocation is rarely linked to offshore
wind or climate targets, leading to overheated
seabed markets
14. SFOC is a Seoul-based non-profit organisation focused on climate action and energy transition
15. Do, T. N., Burke, P
. J., Hughes, L., Thi, T. D. (2022). Policy options for offshore wind power in Vietnam. Marine Policy,
141, 105080. https://doi.org/10.1016/j.marpol.2022.105080
16. https://www.consilium.europa.eu/en/press/press-releases/2022/12/19/repowereu-council-agrees-on-accelerated-
permitting-rules-for-renewables/

be delayed, creating bottlenecks to
growth and to the achievement of
climate targets.
GWEC would urge governments
looking to establish their first
leasing process to consider the
short- and long-term trade-offs
when it comes to leasing fees and
allocation. Uncapped competitive
allocation of leases, for example,
may result in higher short-term
revenues for leasing authorities,
but to the longer-term detriment of
electricity consumers. Uncapped
competitive allocation may also not
contribute to more holistic supply
chain growth outcomes.
In the UK, The Crown Estate,
which owns the territorial seabed
out to 12 nautical miles off
England, Wales and Northern
Ireland, is legally required to
achieve ‘best consideration’ for its
dealings. The competitive bidding
approach, however, raises the
concern that additional costs will
find their way into prices paid by
consumers. GWEC would instead
encourage emerging markets to
look towards Scotland’s ScotWind
leasing model, where bidding
fees were capped to 100,000 GBP
per square kilometre. The
ScotWind process includes a
mandatory Supply Chain
Development Statement to drive
longer-term supply chain
investment.
Deploying offshore wind at the
speed and scale required for the
energy transition will necessitate
new approaches to leasing that
prioritise volume. An intriguing
new model has emerged from
Denmark, where the Open Door
policy would allow developers to
identify potential sites, undertake
preliminary investigations and
secure grid connections. At the
time of writing, the scheme had
regrettably been suspended. The
industry hopes that the Danish
government reconsiders.
Hydrogen
Green hydrogen and power-to-X
can drive the transition in transport
and the hard-to-abate sectors.
Green hydrogen solutions could
decarbonise iron and steel,
long-haul aviation and shipping.
As renewable electrification and
storage technologies continue to
advance, green hydrogen has the
potential to be employed across
all sectors. With accelerated
deployment, its costs can be
competitive with blue hydrogen
by the early 2030s. Green
hydrogen also has great export
potential.
While the commercialisation of this
technology is still in its early
stages, to date 35 countries have a
hydrogen plan and 17 are
preparing one, according to BNEF
.
IRENA identifies China, the EU,
India, Japan, South Korea and the
US as early adopters.
In Australia, green hydrogen is at
the centre of global
decarbonisation strategies. In
preparation for Australia to
become a major hydrogen
exporter, the government
published in early 2022 a National
Hydrogen Strategy.With a vision to
be at the forefront of renewable
hydrogen production and export,
the Queensland State Government
launched the Hydrogen Industry
Workforce Development Roadmap
2022-2032 at the Australian Clean
Energy Summit in July 2022.
Offshore wind has a central role
to play in green hydrogen
production. In 2022, the world’s
first offshore green hydrogen
production platform was
inaugurated in France. The
electrolyser, supplied by Plug
Power and developed with Lhyfe,
is the first capable of operating on
a floating platform.17
It will use
electricity supplied by BW Ideol’s
floating offshore wind turbine
Floatgen, installed at the offshore
test site in 2018.
Auction design
(non-price criteria)
After a decade of cost reductions,
offshore wind is at an inflection
point with a highly competitive
LCOE that is now 3 USD/MWh
below that of coal and 18 USD/MWh
below that of gas.18
While achieving
affordable electricity remains the
key priority, it is also important for
the industry to scale up while
maximising the overall industrial
and system value for offshore wind.
The introduction of the IRA in the
US to drive domestic
manufacturing capability, regional
transmission and investment is
heralding a new era in the
international race for offshore
wind. The beneficial changes to
the tax credit available, when
Deploying offshore wind at
the speed and scale required
necessitates new approaches to
leasing that prioritise volume
17. Lhyfe (2022) inaugurates world’s first offshore
renewable hydrogen production pilot site
18. 2H 2022 Levelized Cost of Electricity Update (BNEF)

GWEC.NET
76
implemented successfully, will
create a robust domestic supply
chain to enable project
development in the long term.
One way to encourage effective
system design, and to capture the
greater socioeconomic value that
offshore wind brings, is to
gradually move away from a
just-on-price auction model to a
design that incorporates non-
price criteria that incentivise
innovation and supply chain
build-up. A healthy auction
mechanism should account for the
total net impacts on society and
not focus on price alone.
The use of minimum local content
requirements (LCRs) as a form of
non-price criteria has substantially
increased in recent years as
governments claim the measure
can help develop domestic
manufacturing capacity for
renewable technologies, create
local jobs and encourage
technology innovation.
Australia, Ghana, Japan, Oman,
Taiwan and the UK have
implemented green LCRs since
2015.19
In Japan, LCRs accounted
for 40 out of the 120 points
19. Overcoming Barriers to International Investment in
Clean Energy (OECD)

available in the project feasibility
evaluation for their first offshore
tender round in 2020. One of the
requirements was a track record of
engagement with key stakeholders
and impact on local and national
employment and manufacturing.
In Taiwan, stringent LCRs required
developers to locally procure 26 ‘key
development items’ for at least 60%
of a project’s proposed capacity.
Without a clear implementation
pathway and sufficient support
mechanisms from governments,
LCRs can be counterproductive by
driving up prices while hampering
competition and innovation. Local
value is best created through
naturally local jobs, particularly in
transport, construction and OM
– as the servicing of wind farms
creates jobs over the full project
lifetime of 20+ years while job
creation in manufacturing requires a
market with long-term stability.
Including non-price criteria should
enable a shift from focusing on
lowest-price projects to rewarding
project delivery with highest
value.20
The use of these criteria
recognises the wider societal
value that wind energy brings.
Non-price criteria can be prioritised
if they fall under three categories21
:
sustainability and biodiversity;
system integration and innovation;
supply chain development and
benefits to communities.
Selected criteria should be:
l
Clear and objective to identify
the right project without being
discriminatory against any group
of stakeholders.
l
Transparent and measurable to
avoid introducing additional
administrative processes and
complex bidding activities.
l
Reasonable and practical to
build on current industry
capabilities without further
inflating the cost or delaying
project development.
In 2022, the German Parliament
adopted a new offshore wind law
(WindSeeG) establishing two
types of auctions, one of which
involves negative bidding with no
caps on the amounts developers
bid. The industry sees this change
as doing more harm than good, as
uncapped negative bidding means
additional costs for electricity
consumers and the supply chain.22
Non-price criteria are increasingly
accepted in Europe, with all
successful offshore wind auctions in
2022 including non-price criteria as
part of the evaluation. SiteVII of the
Hollandse Kust West (HKW) tender
placed a high priority on non-price
criteria as the tender focused on
how well the wind farm can be
integrated into the Dutch energy
system. SiteVI of HKW, on the other
hand, focused on biodiversity.23
Ultimately, non-price criteria in
auction design should encourage
healthy competition and innovation
while enabling rapid scale-up of
offshore wind development and the
recovery of costs.
Floating offshore wind
With 80% of the world’s offshore
wind resource potential in areas
with a water depth of more than 60
metres, from 2030 we expect to
see a rapid acceleration of floating
offshore wind.24
Many of the
emerging offshore markets, such
as Vietnam and the Philippines, are
predominantly floating markets.
Mature markets are increasingly
looking at floating offshore as they
run out of seabed areas suitable
for fixed-bottom offshore projects.
Non-price criteria in auction design
should encourage innovation while
enabling rapid development
20. https://www.weforum.org/projects/system-value
21. https://windeurope.org/policy/position-papers/
windeurope-position-on-non-price-criteria-in-auctions/
22. https://windeurope.org/newsroom/press-releases/
negative-bidding-in-german-offshore-wind-law-threatens-
supply-chain/
23. https://windeurope.org/newsroom/press-releases/
europes-latest-offshore-auction-mainly-using-non-price-
criteria-is-a-success/
24. Floating Offshore Wind - A Global Opportunity (GWEC)

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78
GWEC market intelligence
forecasts the floating offshore wind
market to reach 16.5 GW by 2030.
Seabed and subsidy auctions
planned for 2023 show that the
sector is preparing for the next
step up in scale.
A number of countries are also
joining the race to establish
themselves as a global floating
wind supply hub.
In Asia, Japan’s ‘Program for
Promoting Investment in Japan to
Strengthen Supply Chains’ is an
initiative that aims to establish a
manufacturing base for offshore
wind. Korea’s 300 million USD
MoU25
with leading wind turbine
manufacturer Vestas is a similar
step towards solidifying Korea’s
position as one of the offshore
supply chain hubs in the region.
Taiwan has updated its floating
offshore wind demonstration
project guidelines to increase
project capacity from 100 MW to
more than 200 MW. Developers
with existing floating wind sites are
preparing to enter the Round 3.2
auction scheduled later this year.
In Europe, more than 60 million GBP
of public and private investment will
be used to develop floating
technologies and to place more
turbines across the UK’s coastlines.
In early 2022, the ScotWind auction
alone awarded more than 13 GW of
floating offshore wind sites,
representing more than half of the
existing offshore wind capacity in
the UK.26
France was to announce
the winner of a 250 MW floating
wind project in South Brittany at the
time of writing.
Floating offshore wind is likely to
rapidly bring down costs, creating
the opportunity to open up more
markets.The industry can also use
existing maritime and petrochemical
expertise to transition into floating
offshore wind. Floating wind will
need to move to a larger scale, and
the first commercial project will be
key to setting a model that enables
future floating offshore wind project
deployment.
As it brings down
costs floating offshore
wind will create the
opportunity to open up
more markets
25. https://www.koreaherald.com/view.
php?ud=20230119000218
26. https://www.ft.com/content/d894424c-6d29-497d-b728-
2083a5d038e2

Focus on offshore wind: GOWA
The government of Denmark,
IRENA and GWEC founded the
Global Offshore Wind Alliance
(GOWA) in September 2022 to
drive the uptake of offshore wind
through political mobilisation and
the creation of a global community
of practice. GOWA aims to
contribute to achieving a total
global offshore wind capacity of at
least 380 GW by 2030 and 2,000
GW by 2050, with 35 GW being
deployed on average each year
through the 2020s and a minimum
of 70 GW annually from 2030.
GOWA envisions offshore wind
making a significant contribution
to the energy transition and the
achievement of the sustainable
development goals through
large-scale renewable power
generation benefiting regions,
nations and critical sectors such
as industry and transportation.
To benefit from the substantial
potential and opportunities
deriving from offshore wind it is
pivotal that governments, private
sector actors, international
organisations and other relevant
stakeholders work together to
remove the barriers to scaling up
investment and finance.
GOWA is a multi-stakeholder,
diplomatic and workstream based
initiative that has public private
partnership as its guiding
principle.
GOWA will work to:
l
Raise ambition on offshore wind
amongst governments and
other public and private
stakeholders.
l
Support the creation of policy
frameworks and efficient
offshore wind value chains to
bring new and existing markets
to maturity through, for
example, the sharing of best
practices and capacity
building.
l
Create an international
community of practice to drive
action on offshore wind
deployment as a key to
achieving 1.5C pathways.
To support countries as they seek
to develop offshore wind, GOWA
will address the major building
blocks for the sector, such as
framework conditions, financial
de-risking, system integration and
economic benefits.
These are all important drivers to
reduce costs, ensure competitive
market prices and create project
pipelines at country and regional
level. GOWA activities will be
based on a demand-driven
approach.
The Global Wind Energy Alliance (GOWA)
Australia
Belgium
Colombia
Denmark
Germany
Ireland
Japan
The Netherlands
Norway
Portugal
Spain
St Lucia
UK
USA
At the time of writing, GOWA has 14 country members

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80
Focus on offshore wind: OEP
The Ocean Energy Pathway (OEP)
is a large-scale, multi-year
programme for contributing to the
acceleration of the global energy
transition. OEP aims to ramp up the
delivery of offshore wind through
collaboration between industry
and civil society that unlocks the
potential of ocean-based
renewable energy in new and
underdeveloped markets.
The OEP’s fundamental tenet is that
sustainable scaling up of the sector
will only come from high-quality,
locally appropriate policy and
regulation that encourages nature-
positive outcomes, delivers for
local communities, and enables
wider economic development.
A trusted partner for all
stakeholders
Being independent of industry, the
OEP is a trusted partner that works
with governments, investors,
communities and NGOs to build a
competitive and sustainable
offshore wind sector. Its key aim is
to proactively address the major
challenges offshore wind faces
through three thematic pillars:
market design and supply chains,
limited government capacity, and
providing benefits for nature and
community.
Market design: how policy drives
investment
The development of domestic
supply chains – a trend
increasingly arising from political
necessity – can also become a
limiting factor for the rapid
expansion of offshore wind to new
countries. Governments and local
industry must work together on
new policy instruments and
strategic support in developing
their own supply chains in a way
that does not hinder offshore wind
development.
The wind industry needs
confidence in policy measures to
drive increased investment in
manufacturing, infrastructure and
talent. Unless the correct industrial
policy choices are made, success
for offshore wind will be severely
constrained.
Government capacity: why
appropriate regulation matters
Delivering offshore wind is a
complex policy design challenge
for developed bureaucracies – and
an even greater one for countries
that lack the regulatory and
institutional underpinnings to build
delivery frameworks. This adds
uncertainty and stretches out wait
times for developers.
New offshore wind markets need a
huge amount of locally appropriate
and fully aligned policy and
regulation if the sector is to scale
up to meet its targets.
Dealing with socio-political and
ecosystem impacts
Socio-political challenges
increasingly threaten project
viability. Offshore wind operates in
a complex, multi-stakeholder
landscape where the technology is
often poorly understood,
engendering conflict that causes
additional costs and delays.
Offshore wind competes with
existing ocean users – sectors that
may feel their prospects are
threatened by ocean-energy
technologies. The ecosystem
impacts of offshore wind projects
are also poorly understood,
especially in new markets, leading
to ‘green-on-green conflict’ where
conservation NGOs push back
against wind projects.
Ocean Energy Pathway (OEP)

Focus on offshore wind: OEP
Accelerating ocean-based
renewable energy requires new
approaches to deployment,
including a sustainable approach
to ocean stewardship, to avoid the
industry being caught in the
crossfire of wider conversations
around ocean management.
In new markets especially, the
offshore wind industry needs to
establish early partnerships with
conservation groups and local
communities to shape emerging
regulations and political
narratives.
How to accelerate deployment
In the medium to long term, the
wind industry and investors may
be able to continue to single-
handedly bring offshore wind to
scale in several markets. But given
the huge role offshore wind must
play in displacing fossil fuels and
getting us on track for a 1.5C
world, we cannot wait for the
market alone to act.
The OEP knows that while there
are common elements to
building a successful offshore
wind sector, it is essential to
work within the unique economic
and political contexts of each
country. For this reason, it
focuses on a number of actions
that are crucial to successful
project delivery.
Expertise and networking
Because the wind industry has so
far deployed and invested in the
vast majority of offshore wind
projects, the OEP occupies a
unique position to convene and
support all stakeholders in this
area. It aims to leverage its
experience and connections to
support and complement the work
of other organisations including the
World Bank and the International
Renewable Energy Agency
(IRENA), as well as partner
governments and the offshore
sector itself.
The OEP will create a network of
regional experts that can work with
governments and stakeholders to
build knowledge on offshore wind.
Serving as a catalyst for longer-
term systematic change, the OEP
intends to provide experts who
can sit alongside officials in
governments, rather than work
remotely from within large
consultancies. This will allow us to
support learning inside new
country markets and accelerate
growth in expertise.
The OEP will also make an
ongoing effort to create and/or
invest in local networks to facilitate
dialogue and shared working
between ocean and nature NGOs,
community groups, industry
groups and government
stakeholders.
The OEP’s strategic approach is to
focus on countries with significant
carbon footprints, at risk of fossil-
fuel lock-in, and with significant
wind resources while also
responding pragmatically to
country-specific ambitions,
evolving politics and economics.
Priority countries include Vietnam,
Indonesia, the Philippines,
Thailand, India, South Korea,
Taiwan, Colombia, Brazil, Japan
and South Africa.
While there are common elements to a successful
offshore wind sector, it is essential to work with the
unique context of each country

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India
● Annual target of 8 GW onshore wind
tender every year between 2023 and
2030 based on a single-stage
● MNRE published a strategy paper
outlining a tender trajectory of 37 GW of
offshore wind by 2030
● Indian government and industry seizing
supply chain opportunities
Egypt
● 42% renewable energy by 2035 with
support of Green Corridor Initiative
● Installations projected to rise from 1.7 GW
to 8 GW by 2030
● Multi-GW scale projects in early stages of
development
China
● 50 GW of planned installations during the
14th Five-Year Period (2021–2025)
● Projected annual installations of
70–80 GW until 2030
● Local industry ready to support annual
installations of approximately 15 GW
Australia
● New national government supportive of onshore
and offshore wind development
● Offshore Electricity Infrastructure Regulations
released
● Announced areas for offshore wind in
Gippsland (Victoria)
Brazil
● Cross-party support for wind
energy as a driver of economic
growth and job creation
● ABEEólica expects annual additions
wind over the next decade
● Offshore wind and green hydrogen
expected as additional drivers for
wind energy development
South Korea
● Wind energy target increase from 2 to 34%, as
part of a 30% renewables target by 2036
● Projected 34 GW of installed wind energy
by 2036
● New government implementing a 'One Stop
Shop Bill' to fast-track project development
Strong installed capacity increase, new ambitious targets and/or policy improvement
Adequate targets and policies, but not matched by expected progress
Lack of progress or regression
Tunisia
30 GW
60 GW
300 GW
17 GW
28 GW
9 GW
15 GW
Wind energy by 2030
Victoria - offshore
wind by 2040
No federal targets
Wind energy by 2030
45%
Wind energy by 2030
5%
Offshore wind over
2026–2035 (1.5 GW/yr)
10 GW
Offshore wind targets of 10 GW
by 2030 and 30–45GW by 2040
Renewable energy by 2030
100%
Renewable
power by
2030
100%
Renewable
power by
2030
Mongolia
Australia
Indonesia
Thailand
India
China
Kazakhstan
Uzbekistan
Saudi
Arabia
Egypt
Algeria
Mauritania
Brazil
Argentina
Chile
Peru
Colombia
Costa Rica
Mexico
United States
Canada
Nigeria
Morocco
EU
UK
Senegal
South Africa
Ethiopia
Kenya
Tanzania
Vietnam
Philippines
Taiwan
South
Korea
Japan
Uruguay
Ghana
Nambia
Mozambique
Policy heat map

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Markets to watch: Brazil
There are reasons to be optimistic
about the prospects for wind
energy in Brazil, following years of
solid industry performance and
positive policy developments. In
2022, onshore capacity surpassed
24GW1
after another strong year for
installations, while excitement over
the prospects for offshore wind
reached unprecedented heights.
Under the Paris Agreement, Brazil
has committed to reducing
greenhouse gas emissions by 37%
from 2005 levels by 2025 and 50%
by 2030. At the COP26 climate
summit in November 2021, Brazil
also announced a zero illegal
deforestation target by 2030
alongside a national hydrogen
strategy.2
Newly elected President Luiz Inácio
‘Lula’ da Silva said during his
electoral campaign that his
government would place climate
change and the energy transition at
the core of its policies, and some
concrete signs in this direction have
already been sent. Brazil’s new
federal administration is expected
to provide incentives for the energy
transition while balancing energy
sector priorities with a broad
environmental agenda.
This represents a crucial strategic
opportunity for the country,
according to Brazil’s wind energy
and new technologies association
ABEEólica, provided the right
regulatory and economic
infrastructure is put in place rapidly
to trigger wind industry investment
in Brazil in preference to other
countries. As expected, under
Brazil’s new political leadership,
state-owned energy giant
Petrobras has already announced
that it will fully re-enter the
renewables sector, with offshore
wind and green hydrogen being
particularly important priorities.
Signalling the company’s renewed
ambition, on 7 March, new
Petrobras CEO Jean-Paul Prates – a
long-term advocate for wind
energy and renewables –
announced plans to consider
developing seven offshore wind
projects with a total capacity of
14.5 GW in collaboration with
Norway’s Equinor.
Brazil’s GDP is estimated to grow by
2.8% in 2022, which alongside a
continued drive towards
electrification is focusing minds on
the need to redouble efforts to
promote renewable energy
developments. Brazil has an
enviable renewable energy matrix,
with wind power playing a very
important role in securing the
country’s energy supply while
offering low prices for consumers
and contributing to decarbonisation.
Official data confirmed that wind
energy sits in second place behind
hydro by share of electricity
generation in Brazil, while also
providing an impressive list of
socioeconomic benefits. An
ABEEólica report analysing the
impact of wind energy on the
Brazilian economy found that, for
every Brazilian Real (BRL) invested
Brazil’s government to bet on hydrogen and
offshore as wind revolution gathers momentum
1. https://ABEEólica.org.br/wp-content/
uploads/2023/01/2023_01_InfoVento29.pdf
2. https://www.iea.org/countries/brazil
3. https://www.oecd.org/economy/brazil-economic-
snapshot/

in wind farms, there is a 2.9 BRL
uplift on GDP
.4
The wind energy sector in Brazil is
consolidating its growth under the
free electricity market environment
and saw a further shift away from
regulated auctions towards
corporate PPAs in 2022, giving it
added resilience.
ABEEólica expects annual additions
wind over the next decade – but
hopes this will prove to be a
conservative estimate. It is
particularly optimistic about the
prospects for a new and very
promising offshore wind energy
market as the regulatory foundations
for its success are being laid.
Offshore wind:
great expectations
Even before the cabinet of President
Lula took office on 1 January 2023,
the Director of Energy Development
at the Ministry of Mines and Energy
(MME), Marina Rossi, had been
talking up the role of offshore wind
in the country’s economic
development, emphasising the
importance of streamlined rules to
facilitate deployment.5
With around 8,000 kilometres of
coastline blessed with strong
oceanic winds, Brazil has the
potential to install more than 1,200
GW of offshore wind, according to
a study by the World Bank.6
This
dwarfs the already impressive 500
GW that ABBéolica estimates could
be installed onshore.
The past year saw a flurry of
regulatory activity around offshore
wind power generation. Since
Federal Decree 10,946/2022 –
setting guidelines on the use of
maritime space and the
exploitation of natural resources
– came into force in June 2022, a
draft bill on offshore energy
regulation (PL 576/2021) started
making its way through parliament
and two ordinances provided
guidelines on the use of maritime
areas and the creation of a one-
stop-shop for project licensing.
The bill was drafted by former Rio
Grande do Norte Senator Jean Paul
Prates – now the newly appointed
CEO of state energy incumbent
Petrobras. An offshore wind
enthusiast, he has raised
expectations that the company will
review its strategic plan for 2023-27
to boost investment in renewable
energy, and offshore wind
specifically. A significant shift may
take time, but with its strong wind
supply chain and well-established
offshore engineering expertise,
Brazil could position itself as a
regional leader in an area with
several countries poised to invest
heavily in offshore wind energy.
For 2023,ABEEólica plans to
continue to work towards the
establishment of a sound and
consistent regulatory framework for
offshore wind, with the support of
GWEC and an industry keen to
invest in the country.Another major
boost for the sector could come from
green hydrogen, which has the
4. https://ABEEólica.org.br/wp-content/uploads/2022/02/Estudo-Braulio_final.pdf
5. https://www.folhape.com.br/economia/ventos-fortes-nas-usinas-eolicas-contra-o-aquecimento-global/250189/
6. https://www.worldbank.org/en/news/feature/2020/05/27/energia-eolica-offshore-brasil-esmap
With its strong wind supply chain and well-
established offshore engineering expertise, Brazil
could position itself as a regional leader

GWEC.NET
Strap
86
potential to propel demand to the
levels required by hard-to-
decarbonise energy-intensive
industries.Although OECD
projections see slower growth of
1.2% in 2023 and 1.4% in 2024 for
Brazil’s GDP
,7
green hydrogen could
become a catalyst for boosting
renewable energy demand – and the
country’s economic fortunes with it.
ABEEólica supports an industrial
policy focusing on the synergies
between green hydrogen and wind
energy, and expects to engage
positively with the new government
to fast-track its progress.
Meanwhile, it expects the first
offshore wind tender in 2023 and
was encouraged to see the
technology gain a mention in the
Brazilian Electricity Regulatory
Agency’s (ANEEL’s) strategic plan
for 2023-24.8
But it insists that the
country needs a breakthrough in
detailed offshore wind power
regulation to become an attractive
environment for investors and
enable the technology to take off in
its waters.
Investors have shown plenty of
appetite for this market, with tens
of project applications for a total of
more than 170 GW of offshore
wind power capacity already filed
with the Brazilian Institute of the
Environment and Renewable
Natural Resources (IBAMA).
Under its latest Ten-Year Energy
Expansion Plan (PDE), Brazilian
energy planning agency EPE
foresees renewable energy
representing 48% of the country’s
energy matrix by 2031. Brazil’s
offshore wind sector may only be
in its infancy by that date, but it has
the potential to make a major mark
over the following decade.9
Having become Latin America’s
undisputed wind energy market
leader over the past decade, with
more than 50% of the region’s
installed wind capacity, Brazil
confirmed its position in 2022. The
challenge for the future is to
consolidate policies and establish
a strong regulatory framework for
offshore wind and green hydrogen
in order to provide the
appropriate conditions for
industry to invest so that Brazil can
lead the way to a just energy
transition in the region.
7. https://www.oecd.org/economy/brazil-economic-snapshot/
8. https://www.gov.br/aneel/pt-br/assuntos/noticias/2022/aprovada-agenda-regulatoria-com-15-temas-estrategicos-para-
o-bienio-2023-2024
9. https://www.epe.gov.br/en/press-room/news/mme-launches-english-version-of-the-ten-year-energy-expansion-plan-
pde-2031

Markets to watch: India
GWEC.NET
In the midst of global uncertainty
caused by the global COVID
pandemic, the Russia-Ukraine war
and recessionary pressures, India’s
continued political stability has
provided strong support for the
country’s climate commitments.
India has prioritised renewable
energy, including wind power, in its
long-term vision for transformation
lifting expectations for a wind
sector that experienced a
slowdown in capacity additions in
the recent past.1
India’s Central Electricity Authority
(CEA) projects Ex-Bus electricity
demand to grow 75% by 2031-32
from 2021-22 levels, and 170% by
2041–42. Demand is projected to
increase by more than 90% in four
out of the eight windiest states by
the start of the next decade. The
World Energy Outlook 2022
estimates demand to triple
between 2021 and 2050.
India aspires to be a 5 trillion
USD dollar economy by 2025
and aims to grow manufacturing
GDP 15-fold between 2021 and
2047. It is also committed to
achieving net zero by 2070.
Renewable energy (excluding
large hydro) already represents
nearly 30% of India’s installed
power generation capacity, at
410 GW, with 10% of this
capacity being wind energy.
The combined impact of
economic growth, net-zero goals
and burgeoning electricity
demand will result in a rapid
increase in the share of renewable
energy in the power generation
mix. For wind power, India’s target
is to achieve a cumulative 140 GW
of capacity by 2030.
How policy reforms will
accelerate growth
In 2022, India awarded 2.252
GW
of standalone and 2.45 GW of
hybrid wind capacity through
auctions. It commissioned a total of
1.8 GW of onshore wind power
capacity.3
Recent policy reforms
are likely to further boost demand
for wind power and accelerate
capacity additions over the
coming years.
Through its Electricity (Late
Payment Surcharge and Related
Matters) Rules, 2022, the
government aims to curb the issue
of delayed payments hampering the
financial health of green power
generators. It has also laid down the
Electricity (Promoting Renewable
Energy through Green Energy open
Access) Rules, 2022 to support the
uptake of green power and the Draft
National Repowering Policy for
Wind Power Projects, 2022 to tap
opportunities for repowering.
The Ministry of New and
Renewable Energy (MNRE) has
outlined a wind-specific renewable
purchase obligation (RPO)
trajectory to 2030, with an annual
target of an 8 GW onshore wind
tender every year between 2023
and 2030 based on a single-stage
The plan is to harness the massive
wind energy potential of eight
windy states: Andhra Pradesh,
Gujarat, Karnataka, Madhya
Pradesh, Maharashtra, Rajasthan,
Tamil Nadu and Telangana.
To support the
development of
power evacuation
and transmission
infrastructure, the
CEA has published
its transmission
planning report for
the integration of
renewable energy,
including 58 GW of
wind energy – of
which 10 GW is
offshore Tamil Nadu
and Gujarat – to the Inter-State-
Transmission-System (ISTS) by
2030. However, the planned
infrastructure may not be sufficient
to accommodate MNRE’s target of
8 GW per year.
Creating a market for
offshore wind
In 2022, the MNRE published a
strategy paper outlining a tender
trajectory of 37 GW of offshore wind
by 2030.Together with the Danish
India eyes global wind energy supply chain
opportunities as it targets growth in capacity additions
1. https://eparlib.nic.in/bitstream/123456789/931974/1/17_
Energy_27.pdf
2. As per IEA’s Advanced Pledges Scenario
3. https://powermin.gov.in/en/content/power-sector-
glance-all-India

GWEC.NET
Strap
Energy Agency, it also published a
conceptual plan with a pipeline of 15
offshore wind projects. Additionally,
the Center of Excellence on
OffshoreWind and Renewable
Energy, jointly set up by the Danish
government and the MNRE,
published reports on maritime
spatial planning that build on earlier
FOWIND4
and FOWPI5
projects.
Creating a market for offshore
wind in India demands a strong
partnership between the
government, development finance
institutions, commercial banks, the
offshore wind industry, and local
communities. Developing India as
an attractive offshore wind market
further requires the introduction of
appropriate standards, such as
environmental impact assessment
(EIA) guidelines, and support for
energy offtake while ensuring the
competitiveness of offshore wind.
Seizing supply chain
opportunities
Recent increases in commodity
prices, coupled with the emerging
impacts of shrinking supply chains
in Europe, are pointing to a huge
opportunity for India in the global
wind energy supply chain.
India’s domestic annual
manufacturing capacity stands at
10-12 GW for wind turbine
generators. India is also the world’s
second-largest market for gearbox
manufacturing and the second-
largest supplier of blades and
generators in the APAC region.
To further strengthen its leadership
in the wind manufacturing sector,
India must put in place a roadmap
for a resilient supply chain of raw
materials – including rare earth
metals and non-standard steel – and
for specific jobs such as casting and
forging. Existing import duty relief
on equipment and components
such as balsa wood and pultruded
carbon fibre, which cannot be
produced or manufactured in India,
must continue.
Micro, small and medium
enterprises (MSMEs) play a pivotal
role in the Indian wind
manufacturing sector. Going
forward, the government should
consider targeted production-linked
incentives for companies currently
engaged in the onshore wind sector,
and for those wishing to get involved
in offshore wind manufacturing.
In 2022, GWEC India convened a
supply chain stakeholder
roundtable, which outlined
high-impact opportunities for
catalysing wind power generation
and manufacturing in the state of
Tamil Nadu. GWEC also
presented a similar scenario to
the government of Gujarat,
alongside recommendations on
repowering, offshore wind, robust
monitoring of utility-scale wind
farms and transmission projects
to various central government
agencies.
India is in a unique position to
leverage growing export and
international service opportunities
in the APAC and European regions.
A strategic supply chain impetus is
pivotal to scaling up India’s wind
manufacturing sector.
Prime Minister Narendra Modi
has called for India to become a
developed economy by 2047.6
In
the so-called Amrit Kaal – the
25-year period between the 75th
and 100th anniversaries of India’s
independence, which was gained
in 1947 – India must leverage all
channels, including Vision for
2047 and the Sovereign Green
Bonds (SGrB) framework, to
support its wind sector, thus
achieving the government’s
vision of green growth and a
renewable energy-led future for
the country.
Markets to watch: India
4. https://gwec.net/members-area-market-intelligence/fowind/
5. https://www.fowpi.in/
6.http://timesofindia.indiatimes.com/articleshow/93574111
88

Markets to watch: Egypt
Egypt became one of the
pioneering countries for wind
energy in Africa and the Middle
East (ME) when the government’s
New Renewable Energy
Authority (NREA) built a pilot wind
energy project in Hurghada in
1988. Fast forward to today. Egypt
is poised to regain its status as a
leading wind energy market
following tremendous ambition
announced on the sidelines of
COP27, which was hosted in
November 2022 on Egyptian soil
for the first time.
Following two decades of modest
wind and renewable energy
targets, the Egyptian government
as COP27 host made a number of
gigawatt-scale announcements. If
the projects are constructed, they
will propel the country’s wind
energy industry into the upper
echelon of emerging markets
worldwide.
Key to unlocking this ambition is the
Egyptian government
announcement of the Green
Corridor Initiative, a separate
electricity grid aimed at ensuring
renewable energy makes up 42% of
the country’s energy mix by 2035.
This features projects such as two
10 GW onshore wind farms planned
by Masdar and ACWA Power.
The Egyptian government has
signed countless MOUs with
several local and global companies
for initiating studies related to
green hydrogen projects. It also
signed an MOU with the European
Commission in November 2022
establishing a long-term strategic
partnership to: collaborate on
future EU imports of renewable
hydrogen and its derivatives;
support Egypt’s decarbonisation
and energy transition activities;
Egypt uses COP27 springboard
to propel itself into multi-GW scale
0 0.3
1.7 2
2.9
4.3
6.3
7.3
8.3
3.4
5.3
0.9 0.9
Cumulative installations (2022-2030)
1 1 1 1
0.6
2
0
2
3
e
2
0
2
2
2
0
2
4
e
2
0
2
5
e
2
0
2
6
e
2
0
2
7
e
2
0
2
8
e
2
0
2
9
e
2
0
3
0
e
Projected wind capacity additions in Egypt
Source: GWEC, 2023

GWEC.NET
90
Markets to watch: Egypt
develop the production, use and
export of renewable hydrogen and
its derivatives.1
Egypt’s current installed capacity
sits at 1,702 MW following grid
connection of Lekela Power’s
252MW West Bakr wind farm. It
will rise by 1.6 GW once the
AMEA Power-led 500 MW Amunet
project, Engie-led 500 MW Gulf of
Suez 2 and ACWA Power’s 1.1
GW wind farm – Africa’s largest
– are completed.
Wind installations are estimated
to achieve 4.3 GW in 2026, if the
projects currently in the pipeline
go online as expected. From
2027, the several projects covered
by MOUs could add an estimated
1 GW per year, culminating in
more than 8 GW of installed wind
capacity by 2030.
GWEC is currently leading the
establishment of Egypt’s first
wind energy association to
support the ambitious growth that
is planned.
Projects in MOUs between industry
and the Egyptian government
l ACWA Power – 10 GW onshore wind farm
l
Masdar, Infinity Power, Hassan Allam Utilities
Consortium – 10 GW onshore wind farm
l
Masdar, Infinity Power, Hassan Allam
Utilities Consortium – 2 GW green
hydrogen project in the Suez Canal
Economic Zone (SCEZ)
l
AMEA Power – 1 GW green hydrogen
project
l
Alfanar – 500,000 t/y of green ammonia
and 100,000 t/y of green hydrogen
l
Total Energies – 300,000 t/y green
ammonia project in the Sokhna region
l
Egypt Green, a joint venture between
Scatec, Fertiglobe (an OCI-ADNOC joint
venture), Orascom Construction and The
Sovereign Fund of Egypt – 100 MW
electrolyser capacity, powered by 260 MW
of solar and wind power
l
Green Fuel Alliance consortium, led by
EDF Renewables and Zero Waste – green
hydrogen and ammonia project in the
SCEZ powered by 2 GW of wind and solar
l
Globeleq – 3.6 GW of electrolysers
powered by up to 9 GW of solar and wind
energy
l
Fortescue Future Industries (FFI) – 9.2 GW
solar and wind energy to produce green
hydrogen and ammonia
1. https://energy.ec.europa.eu/memorandum-
understanding-strategic-partnership-renewable-
hydrogen-between-european-union-and-arab_en

MARKET STATUS
All charts in this section: GWEC, 2023

GWEC.NET
92
Market Status 2022
Globally, 77.6 GW of new wind
power capacity was connected to
power grids in 2022, bringing total
installed wind capacity to 906 GW1
,
a growth of 9% compared with 2021.
Although new onshore installations
declined 5%YoY in 2022, it was still
the third highest year in history for
additions. Following a record 2021
with more than 21 GW grid-
connected, new offshore wind
capacity commissioned last year
dropped to 8.8 GW, making 2022 the
second highest year.
Asia-Pacific lost 3% in market share
last year compared with 2021,but the
region remains the world’s largest
wind market,with China contributing
87% of its 2022 additions.
As the second largest market,
Europe saw record onshore wind
installations in 2022, which helped
boost the region’s market share
from 19% in 2021 to 25%.
North America retained third place
but lost 2% in market share due to
slower growth in the US. Driven by a
record year for installations in Brazil,
Latin America (LATAM) increased
its market share in 2022 by 1%.
After a record year in new
installations in 2021, Africa ME
connected 453 MW of wind power
in 2022, the lowest since 2013.
The world’s top five markets for
new installations in 2022 were
China, the US, Brazil, Germany and
Sweden. Altogether, they made up
71% of global installations last year,
collectively 3.7% lower than 2021.
This was primarily due to the
world’s two largest markets, China
and the US, losing a combined 5%
market share compared with the
previous year – the second
consecutive year that both
countries have lost market share.
In terms of cumulative installations,
the top five markets as of the end of
2022 remained unchanged. China,
the US, Germany, India and Spain
together accounted for 72% of the
world’s total installed wind power
capacity, as in 2021.
Overview New installations
GW
New wind power capacity in 2022
by region (%)
New wind power capacity in 2022 and share
of top 10 markets (%)
21.1
8.8
6.9
4.4
50.7
60.8
95.3
-17.1%
93.6
Onshore
Offshore
6.2
2018
46.3
77.6
2022
68.8
2019
54.6
2020
88.4
2021
72.5
7%
APAC
Europe
56%
1%
25%
12%
North America
LATAM
Africa ME
77.6 GW
16%
China
US
49%
11%
4%
3%
3%
Brazil
Germany
Sweden
Finland
77.6 GW
5%
3%
2%
France
India
UK
Spain
Other
2%
2%
GWEC reports installed and fully commissioned capacity
additions and total installations. According to GWEC
Global Supply Side data, globally 90.6 GW of new wind
power was mechanically installed in 2022, but only 77.6
GW was commissioned primarily because 13 GW of new
installations in China and Vietnam were not grid-
connected. Cumulatively, 940 GW of wind power was
mechanically installed worldwide by the end 2022, but
only 906 GW was commissioned due to grid connection
delays. All charts in the Market Status and Market Outlook
sections are based on GWEC data.

Market Status 2022
The status of onshore wind in 2022 New onshore wind power capacity in 2022 and
market share by country (%)
New onshore wind power capacity in 2022 by
market support mechanism (%)
New grid-connected onshore wind
capacity in 2022 amounted to 68.8
GW, bringing cumulative global
onshore capacity to 842 GW, with
YoY growth of 8.8%.
Thanks to record installations in
Sweden, Finland and Poland, and
recovering installations in
Germany, Europe performed well
in a volatile 2022, adding a record
16.7 GW of onshore wind capacity.
Global additions in 2022 were 5%
lower than in the previous year.
The slowdown in LATAM, Africa
ME is partly responsible for the
decline, but the primary reason is
the slowdown of onshore
installations in the US.
China’s onshore wind installations
plunged in 2021 when the world’s
largest onshore wind market
entered the era of ‘grid parity’,
meaning that electricity generated
by onshore wind would be
remunerated with the same
regulated price as coal power in
every province. GWEC Market
Intelligence forecast, in its Q1 2022
Outlook, that Chinese onshore
installations would bounce back,
reaching 46 GW of new
installations in 2022. The 50.6 GW
of new onshore wind capacity
approved under the ‘grid parity’
scheme in 2021 shows that the
country is on track to reach its
ambitious renewable energy
targets included in the 14th
Five-Year Plan (2021-2025). The
Chinese Wind Energy Association
(CWEA) reported that 44.7 GW of
onshore wind capacity was
installed in 2022, but the latest
statistics released by the National
Energy Administration (NEA) show
that only 32.6 GW of new onshore
wind capacity was grid-connected
last year.
In the US, our Q1 2022 Outlook
forecast relatively stable onshore
wind growth for 2022. The Internal
Revenue Service (IRS) in June 2021
provided a further one-year
extension for projects that started
construction in 2016 or 2017,
allowing project developers to
qualify for the full Production Tax
Credit (PTC) rate if their projects
can meet a commercial operation
date (COD) of end-2022. However,
many projects were delayed by
developers as they awaited full
clarity on the rules of the Inflation
Reduction Act (IRA).
Despite finishing the year with a
strong final quarter, the US wind
industry commissioned only 8.6
GW of onshore wind capacity in
2022, the slowest year since 2018,
according to American Clean
Power (ACP). Due to supply chain
constraints and grid
interconnection issues, more than
10 GW of onshore wind capacity
has had delays, slowing the rate of
installations. GWEC expects the US
market to accelerate sharply now
that the IRA is in place and is fully
understood by investors.
In addition to China and the US, the
other onshore wind markets in the
top five in 2022 were Brazil (4.1
GW), Sweden (2.4 GW) and
Finland (2.4 GW).
‘Grid parity’, auction/tenders and
the PTC remained the top three
market support mechanisms
behind onshore wind capacity
added in 2022. Collectively, they
account for a combined 91%
market share, the same as the
previous year.
Excluding China, 13.7 GW of
onshore wind capacity was
awarded worldwide last year
Top 5*
*China, US, Brazil, Sweden and Finland
Other
72%
28%
68.8 GW
China (grid parity)
Auction/tenders
32.6%
21.3%
8.6
0.6%
3.2%
2.5%
US (PTC)
FiT
Green certificate
Other
68.8 GW

GWEC.NET
94
Market Status 2022
through wind-specific, technology-
neutral, renewable and hybrid
auctions, which is 30% lower than
in 2021. Even though Europe
accounted for more than half of this
volume, it still saw awarded
onshore wind capacity drop by
29% compared with 2021.
Triggered by Russia’s invasion of
Ukraine, governments in the EU
have set ambitious renewable
energy targets to ensure security
of supply. However, onshore wind
tenders launched in 2022 were
undersubscribed in several key
European onshore wind markets
including Germany, France, Spain
and Italy. Longstanding permitting
issues and increased project risk
– associated with global inflation
and supply chain disruption –
combined with unhelpful market
interventions by EU governments
to undermine investors’
confidence.
China approved 11 GW of onshore
wind capacity under the ‘grid
parity’ mechanism in 2022, only
one-fifth of the volume reported
for 2021. As of January 2023,
however, provincial governments
had announced more than 50 GW
of onshore wind capacity under
the same support mechanism,
putting China on track to reach its
‘30-60’ targets.

Market Status 2022
8.8 GW of new offshore wind was
fed into the grid last year, bringing
total global offshore wind capacity
to 64.3 GW by the end of 2022.
The new additions are 58% lower
than the bumper year of 2021 but
still make 2022 the second highest
year in offshore wind history.
l
China continued to lead global
offshore wind development,
although new installations in
2022 were 70% lower than in
2021 – a record year driven by
the end of the feed-in tariff
(FiT). Starting from 1 January
2022, China’s offshore wind
market has also entered the era
of ‘grid parity’ with the end of
national FiTs. Although financial
support at the provincial level is
still available in Guangdong,
Jiangsu and Shandong, the
incentive is much lower than the
FiT previously offered by the
central government.
Commissioning more than 5
GW of new offshore wind in
2022 demonstrates the
resilience of China’s offshore
wind industry. By the end of
2022, cumulative offshore wind
installations in China exceeded
30 GW, a milestone that took
Europe more than three
decades to achieve.
l
With 2.5 GW offshore wind
capacity across six countries
connected to the grid in 2022,
Europe accounted for the
majority of the remaining new
capacity, as in the previous year.
l
The UK further consolidated its
leading position in the
European offshore wind market
in 2022. In addition to
completing the commissioning
of the remaining wind turbines
(924 MW) at the 1.4 GW
Hornsea Project 2, which is now
the world’s biggest operational
offshore wind farm, the UK has
grid-connected 27 wind
turbines (255 MW) at the 1.1
GW Seagreen Project.
l
Having fully commissioned its
first commercial offshore wind
project, the 480 MW Saint-
Nazaire wind farm, last
November, France became
Europe’s second largest offshore
wind market in new additions in
2022, followed by the
Netherlands (369 MW) and
Germany (342 MW).
l
Italy also commissioned its first
commercial offshore wind
project last year. The 30 MW
Beleolico offshore wind farm,
which features 10 MySE3.0-135
wind turbines from Mingyang,
not only represents the first
installation of Chinese wind
turbines in European waters, but
also the first offshore wind
project commissioned in the
Mediterranean Sea.
l
In Norway, the 94.6 MW Hywind
Tampen floating wind project,
featuring 11 units of SG-8.6
MW-167 wind turbines from
Siemens Gamesa and a concrete
SPAR-type floating foundation,
was scheduled to be completed
by the end of 2022, but due to
supply chain issues only seven
wind turbines (60.2 MW) have
come into operation.

l
Altogether, a total of 66.4 MW of
floating wind capacity was
commissioned in 2022, including
60.2 MW at Norway’s Hywind
Tampen project and one 6.2 MW
floating wind turbine supplied
by Chinese CSSC Haizhuang,
installed in China on a floater
prototype called ‘Fuyao’.
The status of offshore wind in 2022
The offshore wind market has grown from 4.4 GW in 2018 to 8.8 GW in 2022,
bringing its market share in global new installations from 9% to 11%. This is 11
percentage points lower than 2021, primarily due to new installations slowing
down in China after an incentive-driven installation rush. GWEC Market
Intelligence expects the global offshore wind market to continue to grow at an
accelerated pace (for details, see Market Outlook).
New offshore installations (MW)
US
Other Europe
Other Asia
Germany UK
China
237
35 123 60
12
2018 2021 2022
2020
2019
4,351
6,243
6,852
21,106
1,715
380
1,655
752
2,493
3,845
16,900
1,312
969
752
888 1,259
1,111
1,253
1,764
483
2,216
1,111
1,001
1,312
1,764
2,317
CAGR +19.2%
342
8,771
5,052
752
1,179
939

GWEC.NET
96
Market Status 2022
l
Outside of China and Europe,
two other markets reported
new offshore wind installations
in 2022: Taiwan (1,175 MW) and
Japan (84 MW). In February
2022, the Ministry of Economic
Affairs’ Bureau of Energy
predicted a total of 2,016 MW
offshore wind capacity would
be added in Taiwan in 2022.
However, only 145 offshore
wind turbines across four
projects were connected last
year. This is due in part to the
COVID-19 pandemic and
typhoon-related disruptions. In
Japan, the 140 MW Akita
Noshiro Port wind farm was
scheduled to achieve full
commissioning by the end of
2022. All the turbines were
installed by early December,
but only the 84 MW Noshiro
Port offshore wind farm was
commissioned in 2022.
l
No intertidal offshore wind
project in Vietnam reached
commercial operation last year,
although more than 300 MW of
intertidal project capacity
missed their COD deadline in
2021 and more turbines were
installed at a few intertidal
projects in 2022. This is because
the ceiling price used by
Vietnam Electricity (EVN) as the
cap to negotiate PPAs with
investors for their renewable
energy projects was missing
until January 2023.
l
The US is the only market with
offshore wind in operation in the
Americas, but no offshore
turbine or project was
commissioned in 2022, as in the
previous year.
l
In terms of cumulative
installations, China overtook the
UK as the top market in 2021,
and further consolidated its
market share in 2022. Germany,
the Netherlands and Denmark
are the other three markets that
make up the top five.
l
Excluding China, where 19.7
GW of offshore wind projects
were approved under the
‘grid-parity’ mechanism, a total
of 12.5 GW of offshore wind
capacity was awarded
worldwide last year through
auctioning, of which 9.5 GW
was in Europe and 3 GW in
Taiwan. In Europe, the UK
awarded the most offshore
wind capacity (7 GW) through
the Contracts for Difference
(CfD) Allocation Round 4,
followed by the Netherlands
(1.5 GW) and Germany (980
MW). The two ‘subsidy-free’
tenders (760 MW each) that
were launched and awarded in
the Netherlands were Europe’s
latest offshore wind auctions
using non-price criteria to
select winners.
l
The US awarded no offshore
wind project capacity last year,
but collectively more than 13 GW
of capacity was allocated
through the NewYork Bight,
Carolina Long Bay and California
lease sales. The California
auction was the first offshore
wind lease sale on the US Pacific
Coast and the first to support
commercial-scale floating wind
development.
After overtaking the UK as the world’s top offshore
wind market in 2021, China further consolidated its
market share in 2022

Market Status 2022
Changes in new onshore and offshore installations, 2021–2022 (GW)
New installations decline in all regions,
except Europe
The annual wind market (onshore
and offshore combined) declined
in all regions except Europe in
2022, with aYoY fall of 17.1%.
l
Onshore wind: despite a
challenging economic environment
and vexing supply chain issues,
Europe had a record year in 2022
withYoY growth of 18.2%, primarily
driven by record installations in
Sweden, Finland and Poland, as
well as recovering installations in
Germany. Compared with 2021,
however, new onshore wind
capacity added in North America,
Africa ME and LATAM last year
fell by 28% (3.8 GW),75% (1.4
GW) and 10% (0.6 GW)
respectively, while new additions in
APAC remained constant.The
decline in North America,Africa
ME and LATAM is mainly due to
lower onshore installations the US,
no turbines were grid connected in
Africa’s two largest wind markets,
South Africa and Egypt, and there
was a sharp drop in new
installations in Argentina and
Mexico.
l
Offshore wind: new offshore wind
installations decreased by 58%
(12.3 GW) compared with 2021,
mainly due to annual growth
returning to normal after China’s
policy-driven installation rush
came to an end.
Total 2021
-12.3
-2.5
2022
LATAM
onshore
1.9
93.6
2.6
77.6
India
onshore
-4.1
-1.4
Africa, ME
onshore
-0.6
Europe
onshore
Other
onshore
0.4
US
onshore
China
onshore
Offshore

GWEC.NET
98
Market Status 2022
Actuals 2022 vs GWEC forecast
China onshore
Chinese onshore wind installations were expected to bounce back in 2022 to reach 46 GW, as more than 50.6 GW of
onshore wind capacity was approved under the ‘grid parity’ scheme in 2021, demonstrating that the country is on track to
reach its ambitious renewable energy targets. According to China’s NEA, 32.6 GW of onshore capacity was grid-connected
last year, but CWEA statistics show that 44.7 GW of onshore wind capacity was mechanically installed in 2022.
USA onshore
The rationale behind our forecast for the US is that the IRS in June 2021 provided a further one-year extension for projects that
started construction in 2016 or 2017, allowing project developers to qualify for the full PTC rate if their projects can reach their
COD by end of 2022. Although only 4.1 GW of onshore wind had been commissioned by the third quarter of 2022, a big
installation push was still expected for Q4 2022. ACP statistics show that Q4 was the strongest quarter of the year, but due to
supply chain constraints and grid interconnections, quarterly installations were still down 35% compared with 2021.
India onshore
India commissioned 1.58 GW of wind power in the first three quarters of 2022, continuing the trend of recovering installation
rates. However, total additions in 2022 were still lower than our Q3 2022 projection, which is primarily driven by the
cancellation of projects rendered unviable by high inflation and delays on account of grid unavailability and timeline
extensions in their Scheduled Commissioning Date (SCD).
Germany onshore
To reduce reliance on fossil fuels imported from Russia, Germany’s new federal government increased its 2030 renewables
target while introducing a new ‘Onshore Wind Law’ (WindLandG) in July 2022 to accelerate installations as part of its ‘Easter
Package’. Actual onshore wind installations in 2022 were slightly lower than expected, but still made Germany Europe’s
largest wind market for additions in 2022.
Brazil onshore
Wind power development in Brazil has demonstrated the industry’s resilience over the past three years, especially during the
COVID-19 pandemic and the country’s political turbulence. 2022 was a record year, with more than 4 GW of onshore wind
installations. The strong growth is linked to projects being developed through both the regulated scheme of public auctions
and the free market of private PPAs.
Vietnam onshore
Since more than 1 GW of registered onshore wind projects missed their COD deadline in 2021, we expected some of them to
start commercial operation in 2022, provided offtake agreements could be made. However, no onshore wind projects
achieved commercial operation last year due to the ceiling price used by EVN as the cap to negotiate PPAs with investors for
renewable projects not being in place until January 2023.
UK offshore
In 2022, GWEC Market Intelligence expected the remaining offshore turbines (totalling 924 MW) at the 1.4 GW Hornsea
Project 2 to reach commercial operation, and half of the turbines at the 1,075 MW Seagreen Project (1
14 wind turbines) in
Scotland to come into operation. Although all the turbines were fully commissioned at the Hornsea Project 2, only 27 wind
turbines (255 MW) were grid-connected at the Scottish project.
Germany offshore
The 342 MW Kaskasi offshore wind farm reached commercial operation in the German North Sea in 2022, in line with our
projection. New offshore wind installations have been low since 2020, primarily due to unfavourable offshore wind policies
and a small short-term offshore wind project pipeline.
China offshore
After a record year in 2021, with nearly 17 GW of offshore wind grid-connected, new installations were predicted to drop
dramatically following the introduction of ‘grid parity’ in the Chinese offshore wind market from 2022. GWEC Market
Intelligence predicted 6 GW of offshore wind to be commissioned in 2022, which was primarily based on the fact that more
than 7 GW of offshore wind projects had started construction by Q1 2022.
Actuals 2022
Forecast Q3 2022
China US India Germany Brazil Germany
offshore
Vietnam
offshore
UK
offshore
China
offshore
3
2
,
5
7
9
4
6
,
0
0
0
8
,
6
1
2
9
,
5
0
0
2
,
4
0
0
2
,
4
0
3
2
,
7
0
0
3
4
2
3
4
2
3
0
0
0
1
,
1
7
9
1
,
4
6
2
5
,
0
5
2
6
,
0
0
0
4
,
0
6
5
3
,
9
0
0
1
,
8
4
7
Actuals for 2022 vs GWEC forecast

Market Status 2022
New installations onshore (%)
Total installations onshore (%)
New installations offshore (%)
Total installations offshore (%)
China 40%
US 17%
Germany 7%
India 5%
Spain 4%
France 2%
Canada 2%
UK 2%
Sweden 2%
Brazil 3%
Rest of world 17%
841.9 GW
China 58%
UK 13%
Taiwan 13%
France 5%
Rest of world 6%
Netherlands 4%
8.8 GW
China 49%
UK 22%
Germany 13%
Netherlands 4%
Denmark 4%
Rest of world 9%
64.3 GW
Detailed data sheet available in GWEC’s member-only area. For definition of region see Appendix - Methodology and Terminology
China 47%
US 13%
Brazil 6%
Sweden 4%
Germany 3%
Finland 4%
India 3%
Spain 2%
France 2%
Poland 2%
Rest of world 14%
68.8 GW

GWEC.NET
100
Market Status 2022
2004
Share of offshore ~1% ~3%
2002 2017
2003 2005 2006 2007 2008 2009 2010 2011 2016
2013
2012 2015 2018 2019 2020 2021 2022
2014
2001
Onshore
Offshore
5-23% 11%
CAGR
+22%
CAGR
+10%
CAGR
+3%
7.9 20.0
7.1
6.4 14.6
11.4 26.5 37.9 38.2 39.8 43.9 34.5 50.2 60.4
8.1 54.6
49.0 72.5
88.4
52.7 46.3
14.7
0.1
36.0
1.6
0.2
7.3
0.3
8.1
26.9
0.4
0.9
39.1
63.8
3.4
0.1
11.5
0.1
8.2
0.3
20.3
0.6
38.5 0.9
40.6
1.5
51.7
2.2
54.9
45.0
1.2
6.5
0.1
53.5
4.5
4.4
50.7
60.8
6.2
93.6
21.1
68.8
77.6
8.8
95.3
6.9
Historic development of new installations (GW)

Market Status 2022
Share of offshore ~1% ~2%
Onshore
Offshore
3-7% 7%
CAGR
+26%
CAGR
+17%
CAGR
+11%
39 73 93 119 157 195 234 278 312 362 421 473 522 621 774
709
568
2005
2002
2001
24 31
2003 2017
2004
0
24
2006 2014
2007 2010
2008 2016
2009 2011
283
5
2012 2013 2015 2018 2019 2020 2021
-1
39
31
0
-1
74
-1
59
-1
48
1
94
3
198
1
121
4
238
2
159
7
319 8
370
12
433
14
488
19
540
23
591
29
650
56
830
842
2022
64
906
36
745
47 58
Historic development of total installations (GW)
GWEC adjusted 2021 total installations compared with the Global Wind Report 2022 based on the latest available statistics. For details see Appendix – Methodology and Terminology

GWEC.NET
102
Market Status 2022
MW, onshore New installations 2021 Total installations 2021 New installations 2022 Total installations 2022
Total onshore 72499 773818 68816 841898
Americas 19243 189582 14829 204134
USA 12747 135848 8612 144184
Canada 677 14255 1006 15261
Brazil 3830 21567 4065 25632
Mexico 473 7159 158 7317
Argentina 669 3291 18 3309
Chile 615 3444 824 4268
Other Americas 232 4018 146 4165
Africa, Middle East 1809 9359 349 9708
Egypt 237 1702 0 1702
Kenya 102 435 0 435
South Africa 668 3442 0 3442
Morocco 197 1512 276 1788
Saudi Arabia 416 422 0 422
Other Africa 189 1846 73 1919
Asia-Pacific 37352 365887 36970 402852
China 30670 301419 32579 333998
India 1459 40083 1847 41930
Australia 1746 9125 1412 10537
Pakistan 229 1516 301 1817
Japan 21
1 4523 149 4668
South Korea 64 1562 96 1658
Vietnam 2717 3102 0 3102
Philippines 0 443 0 443
Kazakhstan 88 337 418 755
Other APAC 168 3776 169 3945
Europe 14095 208991 16667 225204
Germany 1925 56814 2403 58951
France 1
192 19079 1590 20653
Sweden 2104 1
1952 2441 14393
United Kingdom 328 14074 502 14575
Spain 750 28134 1659 29793
Finland 671 3186 2430 5607
Netherlands 952 5370 933 6223
Turkey 1400 1
1
102 867 1
1969
Other Europe 4773 59280 3842 63040
MW, offshore New installations 2021 Total installations 2021 New installations 2022 Total installations 2022
Total offshore 21106 55549 8771 64320
Americas 0 42 0 42
USA 0 42 0 42
Asia-Pacific 17788 27695 6311 34006
China 16900 26390 5052 31442
Japan 0 52 84 136
South Korea 0 142 0 142
Vietnam 779 874 0 874
Taiwan 109 237 1
175 1412
Europe 3317 27812 2460 30272
United Kingdom 2317 12739 1
179 13918
Germany 0 7713 342 8055
France 0 2 480 482
Netherlands 392 2460 369 2829
Denmark 605 2308 0 2308
Belgium 0 2262 0 2262
Other Europe 4 328 90 418
Historic development of new and total grid-connected installations
GWEC adjusted 2021 new and total installations compared with the Global Wind Report 2022 based on the latest available statistics.

MARKET OUTLOOK
All charts in this section: GWEC, 2023

GWEC.NET
104
Market Outlook 2023–2027
expects that new wind power
installations will exceed 100 GW
in 2023 and that 680 GW of new
capacity will be added in the
next five years under current
policies. This equals more than
136 GW of new installations per
year until 2027.
The compound annual growth rate
(CAGR) for the next five years is
15%.

Achieving double-digit growth is a
very positive development. There
are five pillars that will underpin
this level of success in the next five
years:
l
Europe’s renewed urgency to
replace fossil fuels with
renewables to achieve energy
security in the aftermath of the
Russian invasion of Ukraine.
l
A strong uplift for renewable
energy in the US over the next
ten years, primarily driven
by the Inflation Reduction
Act (IRA).
l
expanding the role of
renewables in its energy mix,
aiming for renewable energy to
contribute more than 80% of
total new electricity
consumption by the end of the
14th Five-Year Period (2021–
2025).
l
Governments fully waking up to
the opportunities that offshore
wind can provide, making
offshore wind truly global and
increasing ambition in mature
and developing markets.
l
Strong growth in large emerging
markets both onshore and
offshore from the middle of this
decade.
Global wind power growth in
2023–2027 will continue to rely
primarily on three market
support mechanisms:
l
‘Grid parity’ (China)
l
Tax credit (PTC, ITC and
technology-neutral tax credits
in the US)
l Wind-specific, technology-
neutral, renewable and hybrid
auctions (Europe, LATAM, Africa
ME and South East Asia).
In addition to addressing
challenges such as permitting
and market design, governments
will have to implement new policy
solutions to ensure that the global
supply chain can meet increasing
demand from both established
and emerging markets.
Onshore
Offshore
36
2024e
2022 2023e 2026e 2027e
2025e
78
115
125
135
150
157
32
18
26
18
9
122
117
109
106
97
69
CAGR 15%
New installations outlook 2023–2027 (GW)
GWEC’s Market Outlook represents the industry perspective for expected installations of new capacity for the next five
years. The outlook is based on input from regional wind associations, government targets, tender results, announced
auction plans, available project pipeline, and input from industry experts and GWEC members. An update will be
released in Q3 2023. A detailed data sheet is available in the member-only area of the GWEC Intelligence website.
Global wind energy market
expected to grow by 15%
on average per year

GWEC | GLOBAL WIND REPORT 2023
Global onshore outlook
The CAGR for onshore wind in
the next five years is 12%.
Expected average annual
installations are 110 GW, with a
total of 550 GW likely to be built
in 2023–2027.
Growth in China, Europe and the
US will be the backbone of global
onshore wind development in the
next five years. Altogether they
are expected to make up more
than 80% of total additional
capacity in 2023–2027. GWEC
Market Intelligence believes that
China will be the engine of
near-term growth, accounting for
62% of new installations in 2023.
But installations will accelerate in
Europe, the US and emerging
markets in Southeast Asia and
Africa ME from 2025. Global
onshore wind markets will
become more diversified by 2027
with half of the annual growth
coming from markets outside of
China.
Global offshore outlook
After aYoY fall of 58% in 2022,
annual offshore wind installations
are expected to bounce back
reaching 18 GW in 2023. The
CAGR for offshore wind in the next
five years is 32%. With such a
promising growth rate, new
installations are likely to double by
2027 from 2023 levels.
China and Europe will be the two
key contributors to near-term
growth, making up more than 80%
of new additions in 2023 and 2024.
The US and emerging markets in
APAC will start gaining sizeable
market share from 2025 with 7-8
GW of new offshore wind
expected to be added every year
over the rest of the forecast
period.

In total, 130 GW of offshore wind is
expected to be added worldwide
in 2023–2027, with expected
average annual installations of
nearly 26 GW.
Growth in China, Europe and the US will be the
backbone of global onshore wind development in
the next five years
105

Offshore wind
The global offshore market is
expected to grow from 8.8 GW in
2022 to 35.5 GW in 2027, bringing its
share of total new global installations
from today’s 11% to 23% by 2027.
In Asia, China will remain the
largest contributor with 64 GW to
be added in the next five years,
followed by Taiwan (6.9 GW), South
Korea (2.3 GW),Vietnam (2.2 GW,
primarily intertidal projects) and
Japan (0.9 GW).
In Europe, more than 37 GW of
offshore wind capacity is expected
to be built in 2023–2027, of which
41% is likely to be installed in the
UK - primarily driven by the
commissioning of CfD Allocation
Round 3 and 4 projects, 16% in
Germany, 9% in the Netherlands,
8% in Poland, 8% in France and 6%
in Denmark.
With the first utility-scale offshore
wind project expected to be partially
connected in 2023, 15 GW of
offshore wind capacity is predicted
to be commissioned in the US in the
next five years, making it the largest
offshore wind market after China and
the UK in terms of new additions.This
projection is based on the
assumption that the supply chain will
be established in time to address the
growth from the East Coast of the US.
China
Strict COVID-19 restrictions and the
impact of a sudden ‘reopening’ of
the country made 2022 a difficult
year.Achieving grid connection of
33 GW (mechanical installation of 45
GW) of onshore wind capacity has
demonstrated the resilience of the
Chinese wind industry. In early 2023,
the NEA predicted that generation
from wind and solar power will
double by 2025 from 2020 levels.To
reach the target, 250–300 GW of
wind power capacity needs to be
added between 2021 and 2025.
Since more than 80 GW of wind
turbine orders have already been
awarded in 2022 and the Chinese
government committed to non-fossil
fuels achieving 25% of the country’s
primary energy mix by 2030,
further upgraded its onshore wind
installations forecast and now
predicts 300 GW of new capacity to
GWEC.NET
106
Africa, ME China
Offshore
North America
Europe
Latin America
Asia ex China
Pacific
77,587 115,425 124,451 134,710 149,661 156,983
2022 2023e 2024e 2025e 2026e 2027e
0%
2%
42% 48% 45% 40% 38%
52%
12%
4%
7%
14%
8%
14%
8%
14%
9%
22%
19% 23%
15%
16%
5%
5%
4%
7%
4%
6%
3%
7%
3%
7%
11%
15%
10%
13%
21%
8%
1%
1%
2%
1% 3%
1% 3%
1%
3%
1%
New onshore and offshore installations outlook by region (MW, %)
Onshore wind in APAC, Europe and the US is expected to
accelerate while offshore wind keeps going strong
GWEC’s Market Outlook represents the industry perspective for expected installations of new capacity for the next five years. The outlook is
based on input from regional wind associations, government targets, available project information as well as input from industry experts and
GWEC members. An update will be released in Q3 2023. A detailed data sheet is available in the member-only area of the GWEC
Intelligence website.

be added to the grid in China in the
next five years.
Asia excl. China
Excluding China, India is the largest
wind market in Asia.We expect the
country’s onshore wind market to
continue to recover, with new
additions peaking in 2025–2026
given the expiry of the 100%
interstate transmission charge waiver
(ISTS) in June 2025.Towards 2030,
annual growth has the potential to
reach 5-6 GW under the new
8 GW/year tender trajectory.
However, the tapering down from
50% to zero of ISTS charge waive-
offs between 2026 and 2028 is likely
to limit installations to 4.5–5.0 GW. In
total, 21 GW of onshore wind
capacity is likely to be added in India
in 2023–2027, accounting for half of
the predicted additions for the
region. No onshore wind projects
achieved commercial operation in
Vietnam last year, but we expect new
capacity to be commissioned in
2023 and 2024 now that a ceiling
price used by EVN to negotiate PPAs
with investors for their renewable
projects has been set by the Ministry
of Industry and Trade. Elsewhere in
the region, growth is expected to
come from Japan, Pakistan and
emerging markets of southeast Asia,
as well as in Central Asia. Southeast
Asia (mainly the Philippines, Laos,
Thailand and Sri Lanka) and Central
Asia (primarily Kazakhstan and
Uzbekistan) are likely to make up
22% and 12%, respectively, of the
new capacity expected for this
region in 2023–2027.
Pacific
No projects were commissioned in
New Zealand in 2022, although two
projects totalling 260 MW were
under construction last year.With
construction work ongoing at
another two projects expected to be
online by December, 2023 will be a
record year for this market. However,
growth in New Zealand is likely to
stop if no project is added to the
pipeline in the next two years. In
Australia, the total capacity of
shovel-ready onshore wind projects
at the start of 2023 was close to 4
GW. Although the installation rate in
2023 is predicted to be the lowest
since 2019 – based on announced
project CODs – annual installations
will surge again from 2024 and more
than 3 GW of onshore wind is
expected to be connected before
2026. Growth momentum is likely to
continue beyond 2025 because:
l
More states have rolled out
renewable tenders and renewable
energy zones as more renewables
and storage are urgently needed
to replace coal plants due to retire.

108
l
The corporate PPA market
remains strong, driven by
sustainability goals.
l
There are commitments from
mining and heavy industries on
captive renewables and green
hydrogen.
l
Several transmission projects, such
as Project EnergyConnect,VNI
West and Marinus Link, are either
approved or under construction.
Europe
Our forecast for the next five years is
in line withWindEurope’s Central
Scenario1
, which is based on the
latest developments in EU regulation,
national policies, signed PPAs,
project development timelines and
the ability of wind to secure further
capacity in upcoming auctions and
tenders. After a record year of
installations, onshore wind additions
in Europe in 2023 are likely to fall by
13% compared with last year, which
is due to an expected slowdown in
the Nordic countries. Local
opposition and laws enabling local
communities to block any project
are having a particularly negative
effect in Norway.With strong growth
coming back in established
European markets such as Germany,
Spain, the UK, France, Italy and
Turkey, the European onshore
market will take off again from 2024.
Driven by the REPowerEU target and
2030 renewable targets for non-EU
countries, record onshore wind
installations are expected for Europe
every year over the rest of the
forecast period.
North America
The US onshore wind market has
been a tax credit-driven market.
With the IRA signed into law by the
Biden administration last August, the
situation is likely to continue for the
next ten years.The IRA extended
and increased investment and
production tax credits (ITC and
PTC) through 2024 for wind energy
projects that begin construction
before 1 January 2025. In 2025, the
tax credits for wind will be replaced
with technology-neutral credits for
low-carbon electricity generation,
which in turn are slated for phaseout
in 2032, or when greenhouse gas
emissions from the US power sector
fall to 25% of 2022 levels, whichever
is later2
.Additionally, under the IRA,
projects can receive stackable
bonus credits if certain local
component requirements are met.
GWEC expects the US onshore
wind market to accelerate now that
guidance from ISR on the IRA
implementation is in place.With the
tax benefits and incentives being
fully understood by investors and
suppliers, new investment plans
have already been announced
1. https://windeurope.org/intelligence-platform/product/wind-energy-in-europe-2022-statistics-and-the-outlook-for-2023-2027/
2. https://www.energy.gov/eere/wind/articles/us-wind-industry-federal-incentives-funding-and-partnership-opportunities-fact

across the country. In total, 60 GW of
onshore wind capacity is expected
to be added in the next five years in
North America, of which 92% will be
built in the US and the rest in
Canada. Growth momentum is
unlikely to stop in this region beyond
2027, as more capacity is predicted
to be added in the US in 2028–2032,
primarily driven by technology-
neutral tax credits.
Latin America
Growth in LATAM remained stable
in 2022 with new installations
reaching 5.2 GW, the second highest
in history.The growth was primarily
driven by Brazil, which had a record
year and made up nearly 80% of the
region’s additional capacity. Brazil
performed well in the past two years:
its strong growth was linked to
projects being developed through
both the regulated scheme of public
auctions and the free market of
private PPAs. Despite pipeline
growth having been interrupted by
an unhelpful policy environment in
Mexico and economic instability in
Argentina, new LATAM installations
of 5 GW are likely in 2023–2027,
primarily driven by ongoing growth
in Brazil and Chile, as well as the
completion of long-awaited projects
in Colombia. GWEC Market
Intelligence expects 26.5 GW of
onshore wind to be added in this
region in the next five years with
Brazil, Chile and Colombia
contributing 78% of the additions.
Africa/Middle East
After a record year in new
installations in 2021, Africa ME
connected 453 MW of wind power
last year, the lowest since 2013.
Compared with GWEC Market
Intelligence’s Q3 2022 Outlook, new
onshore wind additions for this
region in the next five years have
been downgraded by 16% (2.6
GW).This is the result of most of the
awarded onshore wind projects
from the REIPPP Bid Window 5
auction being delayed in South
Africa and no wind capacity being
awarded from the REIPPP Bid
Window 6 auction, launched in
2022, due to the unavailability of
grid capacity in the provinces of
Eastern Cape and Western Cape.
With GW-level projects expected to
be built in North Africa and Saudi
Arabia – and projects from the
REIPPP Bid Window 5 auction
coming online – annual growth is
likely to bounce back in this region
reaching 5 GW in 2026–2027. In
total, 17 GW of new capacity is
expected to be added in the next
five years (2023–2027), of which 5.3
GW will come from South Africa, 3.6
GW from Egypt, 2.4 GW from Saudi
Arabia and 2.2 GW from Morocco.

GWEC.NET
110
2025e
2024e
2022 2023e 2026e 2027e 2025e
2024e
2022 2023e 2026e 2027e
2025e
2024e
2022 2023e 2026e 2027e
2025e
2024e
2022 2023e 2026e 2027e 2025e
2024e
2022 2023e 2026e 2027e
16.7
14.5
17.8
18.9
21
23.3
0.3
37.0
66.8
70.1 70.5 72.5 72.3
8.8
18.0 18.2
25.7
32.4
35.5
1.2
3.1
3.4
4.7
4.9
Europe onshore
Asia-Pacific offshore Europe offshore North America offshore
Latin America onshore
North America onshore Africa onshore Middle East onshore
7.8
4.5
1.7
0.5
7.8
4.7
6
4.5
5.9
4.2
3.4
3.4
2.5
1.8
Other Asia-Pacific onshore
India onshore
China onshore
0.3
0.5
0.9
0.3 2.3
0.8
2.5
0.9
3.8
0.9
3.9
1
14.8 14.9 15.4
16.2
19.1
21.0
9.6
5.2
9
5.9
10
5.4
11
5.2
14
5.1
16
5
6.3
17.8
11.8
5.8
13.6
3
2.5
14.9
3.8
7
17.6
10
4.8
12.1
18.9
4.5
60
60
60
60
60
32.6
Regional onshore and offshore wind outlook for new installations (GW)

GWEC.NET
112
Appendix
Global Wind Report 2023 - Methodology and Terminology
Data definitions and adjustments
GWEC reports installed and fully
commissioned capacity additions and
total installations. New installations are
gross figures not deducting
decommissioned capacity. Total
installations are net figures, adjusted
for decommissioned capacity.
Historic installation data has been
adjusted based on the input GWEC
received. GWEC made the adjustments
to both new and cumulative installations
in 2021 for all the markets where
updated statistics are available.
Definition of regions
GWEC adjusted its definition of
regions for the 2018 Global Wind
Report and maintains these in the
2023 edition, specifically for Latin
America and Europe.
Latin America: South, Central America
and Mexico
Europe: Geographic Europe including
Norway, Russia, Switzerland, Turkey
and Ukraine
Sources for the report
GWEC collects installation data from
regional and country wind
associations, alternatively from industry
experts and wind turbine
manufacturers.
Used terminology
GWEC uses terminology to the best
of our knowledge.With the wind
industry evolving, certain terminology
is not yet fixed or can have several
connotations. GWEC is continuously
adapting and adjusting to these
developments.
APAC Asia-Pacific
BNEF Bloomberg New Energy Finance
BOEM
Bureau of Ocean Energy Management
(BOEM)
CI Commercial And Industrial
CAGR Compound Annual Growth Rate
CAISO
California Independent System
Operator
CAPEX Capital Expenditure
CBAM Carbon Border Adjustment Mechanism
CCER China Certified Emission Reduction
CCGT Combined Cycle Gas Turbine
CCUS
Carbon Capture, Utilisation, And
Storage
CfD Contract for Difference
CO2/
CO2e Carbon Dioxide/ Equivalent
COD Commercial Operation Date
COP Conference of the Parties
DFI Development Finance Institution
DNSH Do No Significant Harm
DSR Demand-Side Response
ECA Export Credit Agency
EGAT
Electricity Generating Authority of
Thailand
EEZ Exclusive Economic Zone
EIA Environmental Impact Assessment
EMDEs
Emerging Markets and Developing
Economies
EMS Energy Management System
EPC Engineering Procurement Construction
ESG
Environmental, Social, and Corporate
Governance
EU European Union
EV Electric Vehicle
EVOSS Energy Virtual One-Stop Shop
FDI Foreign Direct Investments
FID Final Investment Decision
FiT Feed-In Tariff
FTE Full-Time Equivalent
GDP Gross Domestic Product
GHG Greenhouse Gases
GST Goods and Services Tax
GW Gigawatt
HSSE
Health, Safety, Security, And
Environment
HVDC High-Voltage Direct Current
IEA International Energy Agency
IFC International Finance Corporation
IoT Internet of Things
IPCC
Intergovernmental Panel on Climate
Change
IPP Independent Power Producers
IRA The US Inflation Reduction Act
IRENA
International Renewable Energy
Agency
IRP Integrated Resource Plan
ISO Independent System Operator
ITC Investment Tax Credit
kt Kilo Tonnes
kWh Kilowatt Hour
LATAM Latin America
LCOE Levelised Cost of Energy
LNG Liquefied Natural Gas
MEA
Metropolitan Electricity Authority of
Thailand
MNRE
Ministry Of New and Renewable
Energy
MOIT
Ministry of Industry and Trade of
Vietnam
MOU Memorandum of Understanding
Mt Metric Tonnes
MW Megawatt
MWh Megawatt Hour
NDCs Nationally Determined Contributions
NEA China’s National Energy Administration
NFTs Non-Fungible Tokens
NSEC North Seas Energy Cooperation
OM Operation And Maintenance
OEMs Original Equipment Manufacturers
OSS One Stop Shop
OPEX Operational Expenditure
OWSC Offshore Wind Service Contracts
PDP Power Development Plan of Vietnam
PEA
Provincial Electricity Authority of
Thailand
PPA Power Purchase Agreement
PV Photovoltaic
PTC Production Tax Credit
RD Research And Development
RECs Renewable Energy Certificates
REE Rare Earth Element
ROI Return on Investment
RPS Renewables Portfolio Standards
RTO Regional Transmission Organisation
STEM
Science, Technology, Engineering and
Mathematics
TW Terawatt
TWh Terawatt Hour
Common industry acronyms
Appendix

Appendix
About GWEC
Market Intelligence
GWEC Market Intelligence Areas
GWEC Market Intelligence provides a
series of insights and data-based analysis
on the development of the global wind
industry.This includes a market outlook,
country profiles, policy updates, deep-
dives on the offshore market among many
other exclusive insights.
GWEC Market Intelligence derives its
insights from its own comprehensive
databases, local knowledge and leading
industry experts.
The market intelligence team consists of
several strong experts with long-standing
industry experience across the world.
GWEC Market Intelligence collaborates
with regional and national wind
associations as well as its corporate
members.
How to access GWEC Market
Intelligence Corporate GWEC Members
l Wind energy associations
l Market Intelligence subscription
Contact
Contact Feng Zhao feng.zhao@gwec.net
GWEC Market Intelligence created
a Member-only area to provide more
in-depth market intelligence to
GWEC’s members and their
employees.
Click here to get your login
Market Insights
Market statistics,
market outlook,
auction/tender updates
Policy and Regulations
Country profiles, policy
updates, offshore updates
Asset Owners
Database of asset owners
in key markets
Technology/ Supply Chain
Wind turbine data, technology
trends, component assessment
Energy Transition
Shift to value-focused, new
wind-based solutions
OM
ISP - OEM - Self Perform
database for key markets
Appendix

GWEC.NET
114 GWEC.NET
114
Appendix
Product Frequency
1. Wind Energy Stats/Market Data
Wind Stats 2022 (historic annual, accumulative, decommision data) Annual
Global Wind Report 2023 Annual
Wind Energy Statistics (wind energy penetration rate, jobs) Annual
2. Country Profiles/Policy Updates
Country Profiles Onshores/Country Profiles Offshore Annual
Ad-hoc Policy Updates Ad-hoc
3. Market Outlook
Global Wind Market Outlook 2023-2027 (Q1 and Q3) Database + Report Semi-Annual
India Market Outlook Report 2023-2027 Annual
Global Wind Workforce Outlook 2023-2027 Annual
4. Supply Side Data
Global Wind Turbine Supply Side Data Report 2022 (by OEM, by technology, by turbine ratings, models and drive train, etc) Annual
5. Auctions/Tenders
Global Wind Auction Database Annual/Auction Trends and Learnings Quarterly
6. Offshore Wind Market
Global Offshore Wind Report 2023 / Market Entry Opportunities Database Annual/Quarterly
Global Offshore Project Pipeline (database, in operation and under construction) Annual/Quarterly
Global Offshore Turbine Installation Vessel Database and Report Annual/Quarterly
7. Components Assessment
Blade (Q4 2023), Generator (Q4 2021), Gearbox (Q4 2022), followed by other components Special Report
8. Wind Asset Owners/Operators
Asset Owners and Operators Database (Onshore Offshore Ranking) Annual
Asset Owners and Operators Status Report (including strategical trends) Annual
9. OM
OM Service Provider Database (ISP - OEM - Self-perform) Annual
OM Service Provider Status Report (including regional trends) Annual
10. Energy transition, Digitalisation, New Technologies
Position papers / studies - permitting, Corporate PPAs / New solutions, GWEC policy recommendations Special Report
GWEC Market Intelligence Products in 2023

Global Leaders
GWEC.NET
Siemens Gamesa
Siemens Gamesa unlocks the power of wind.
For more than 40 years, we have been a
pioneer and leader of the wind industry, and
today our team of more than 26,000 colleagues
work at the center of the global energy
revolution to tackle the most significant
challenge of our generation – the climate crisis.
With a leading position in onshore, offshore, and
service, we engineer, build and deliver
powerful and reliable wind energy solutions in
strong partnership with our customers. A global
business with local impact, we have installed
more than 120 GW and provide access to clean,
affordable and sustainable energy that keeps
the lights on across the world, while supporting
the communities where we operate.
Shell
Shell is building a global integrated power
business spanning electricity generation,
trading and supply. Shell entered the offshore
wind business in 2000 as part of a consortium
that installed the first offshore wind turbine in
UK waters. Today, we have deployed, or are
developing, over eight gigawatts (GW) of wind
across North America, Europe, the UK, and Asia.
We see offshore wind as a critical way of
generating renewable electricity for our
customers and moving Shell towards its target
of being a net-zero emissions energy business
by 2050 or sooner, in step with society.
Ørsted
The Ørsted vision is a world that runs entirely
on green energy. Ørsted develops, constructs,
and operates offshore and onshore wind farms,
solar farms, energy storage facilities, renewable
hydrogen and green fuels facilities, and
bioenergy plants. Moreover, Ørsted provides
energy products to its customers. Ørsted is the
only energy company in the world with a
science-based net-zero emissions target as
validated by the Science Based Targets initiative
(SBTi). Ørsted ranks as the world’s most
sustainable energy company in Corporate
Knights’ 2022 index of the Global 100 most
sustainable corporations in the world and is
recognised on the CDP Climate Change A List
as a global leader on climate action.
Mainstream Renewable Power
Mainstream Renewable Power is a leading
pure-play renewable energy company, with
wind and solar assets across global markets,
including in Latin America, Africa, and
Asia-Pacific. Mainstream is one of the most
successful developers of gigawatt-scale
renewables platforms, across onshore wind,
offshore wind, and solar power generation. It
has successfully delivered 6.5 GW of wind and
solar generation assets to financial close-ready.
In May 2021, Aker Horizons acquired a 75%
equity stake in the company, accelerating its
plans to deliver its high-quality pipeline of over
16 gigawatts of clean energy. Mainstream has
raised more than EUR3.0bn in project finance to
date and employs more than 420 people across
five continents.
The Global Wind Energy Council’s Global Leaders are an exclusive leadership group of decision-makers and top-tier members who form the basis of the
Association’s Executive Committee, which drives the work programme and plays a major role in shaping GWEC’s priorities for its efforts in the short and
long-term strategy.
GWEC Global Leaders

GWEC.NET
116
Global Leaders
GWEC | GLOBAL WIND REPORT 2023
GE Renewable Energy
GE Renewable Energy harnesses the earth’s
most abundant resources – the strength of the
wind, the heat of the sun and the force of water;
delivering green electrons to power the world’s
biggest economies and the most remote
communities. With an innovative spirit and an
entrepreneurial mindset, we engineer energy
products, grid solutions and digital services that
create industry-leading value for our customers
around the world.
Iberdrola
With over 170 years of history behind us,
Iberdrola is now a global energy leader, the
number one producer of wind power, and one
of the world’s biggest electricity utilities in
terms of market capitalisation.We have brought
the energy transition forward two decades to
combat climate change and provide a clean,
reliable and smart business model, to continue
building together each day a healthier, more
accessible energy model, based on electricity
Vestas
Vestas is the energy industry’s global partner
on sustainable energy solutions.We design,
manufacture, install, and service wind turbines
across the globe, and with +151 GW of wind
turbines in 86 countries, we have installed more
wind power than anyone else.
Through our industry-leading smart data
capabilities and +129 GW of wind turbines
under service, we use data to interpret, forecast,
and exploit wind resources and deliver
best-in-class wind power solutions. Together
with our customers,Vestas’ more than 29,000
employees are bringing the world sustainable
energy solutions to power a bright future.
Equinor
We are looking for new ways to utilise our
expertise in the energy industry,exploring
opportunities in new energy and driving innovation
in oil and gas around the world.We know that the
future has to be low carbon.Our ambition is to be
the world’s most carbon-efficient oil and gas
producer,as well as driving innovation in offshore
wind and renewables.We plan to reach an installed
net capacity of 12-16 GW from renewables by
2030,two-thirds of this will be from offshore wind.
With five decades of ocean engineering and
project management expertise,focus on safe and
efficient operations,in depth knowledge of the
energy markets,skilled personnel and a network of
competent partners and suppliers,Equinor is
uniquely positioned to take a leading role in the
offshore wind industry.From building the world’s
first floating wind farm to building the world’s
biggest offshore wind farm we are well underway
to deliver profitable growth in renewables be a
leading company in the energy transition.
SSE
SSE Renewables is a leading developer and
operator of renewable energy, headquartered
in the UK and Ireland, with a growing presence
internationally. Its strategy is to lead the
transition to a net zero future through the
world-class development, construction and
operation of renewable power assets and it is
building more offshore wind energy than any
other company in the world. Part of the
FTSE-listed SSE plc, SSE Renewables is taking
action to double its installed renewable energy
capacity to 8GW by 2026 as part of its Net Zero
Acceleration Programme, and increase
renewables output fivefold to over 50TWh
annually by 2031.
Corio
Corio Generation is a specialist offshore wind
business dedicated to harnessing renewable
energy worldwide. Our 20+ GW development
portfolio is one of the largest in the world,
spanning established and emerging markets,
as well as floating and fixed-bottom
technologies.
With our leading industrial expertise and deep
access to long-term capital, we work closely
with our partners in the creation and
management of projects from origination,
development and construction, and into
operations.
Corio Generation is a Green Investment Group
(GIG) portfolio company, operating on a
standalone basis. GIG is a specialist green
investor within Macquarie Asset Management,
part of Macquarie Group.
CIP
Founded in 2012, Copenhagen Infrastructure
Partners P/S (CIP) today is the world’s largest
dedicated fund manager within greenfield
renewable energy investments and a global
leader in offshore wind. The funds managed by
CIP focuses on investments in offshore and
onshore wind, solar PV, biomass and energy-
from-waste, transmission and distribution,
reserve capacity, storage, advanced bioenergy,
and Power-to-X.
CIP manages ten funds and has to date raised
approximately EUR 19 billion for investments in
energy and associated infrastructure from more
than 140 international institutional investors. CIP
has approximately 400 employees and 11
offices around the world.
ReNew
ReNew is the leading decarbonisation solutions
company listed on Nasdaq (Nasdaq: RNW,
RNWWW). ReNew’s clean energy portfolio of
~13.4 GWs on a gross basis as of December 31,
2022, is one of the largest globally. In addition to
being a major independent power producer in
India, we provide end-to-end solutions in a just
and inclusive manner in the areas of clean energy,
green hydrogen, value-added energy offerings
through digitalization, storage, and carbon
markets that increasingly are integral to
addressing climate change.

Lincoln Electric Bryan O’Neil (Bryan_ONeil@lincolnelectric.com)
Hamburg Messe info@windenergyhamburg.com
(WindEnergy Hamburg)
Harting Electric Guanghai Jin (Guanghai.Jin@harting.com)
Techstorm Martijn van Breugel (martijn@techstorm.com)
Bureau Veritas Paul Trevillyan (paul.trevillyan@bureauveritas.com)
Appendix
Associate Sponsors
Leading Sponsor
Supporting Sponsor
4/02/11 15:40:22

Global Wind Energy Council
Rue de Commerce 31
1000 Brussels, Belgium
T. +32 490 56 81 39
info@gwec.net
@GWECGlobalWind
@Global Wind Energy Council (GWEC)
@Global Wind Energy Council
www.gwec.net GLOBAL WIND ENERGY COUNCIL

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