February 2024
AME anticipates surpassing 2TW of global installed wind capacity by 2030, but growth lags behind the levels needed for a 1.5C pathway.
Wind energy will play a major role in achieving net-zero goals. IRENA envisions 3.04TW onshore and 0.494TW offshore wind by 2030, totalling 3.5TW. The IEA's net zero by 2050 scenario calls for 2.75TW of wind installations by 2030. To meet 1.5C targets, annual global wind installations must increase from 110GW to 3-3.5 times that by the decade's end. The wind industry has become volatile, weighed down from failed auctions, raw material price hikes, and varying policy signals. These challenges have resulted in project delays and cancellations, impacting both buyers and sellers. Post-pandemic, supply chain inflation has raised capital costs, affecting previously secured projects. Rising interest rates has tightened global lending, exacerbating financing challenges. Varying policy signals have hindered wind supply chain adjustments, causing overcapacity. Western companies, facing underinvestment, are struggling to scale up for the net-zero pipeline. In China, despite sufficient investment, industry consolidation stalls due to political and industrial interests, has impacted wind players differently.