Global Wind Energy Sector Growth Set to Continue

Based on information compiled from reports by the Global Wind Energy Council (GWEC) and WindEurope, growth in the global wind energy sector is expected to continue in the coming years with support from governments, cities, investors and customers. According to GWEC, wind energy capacity additions will reach 143 gigawatts annually during 2023-2030 with 13% growth. This means global wind energy installed capacity will reach 2 terawatts by 2030. According to GWEC, global wind energy installed capacity reached 1 terawatt over a period of 40 years. Following the Covid-19 pandemic affecting the entire world, economic recovery plans and high energy prices resulting from the Russia-Ukraine War have prompted many countries to continue developing policies to more effectively utilize renewable energy sources, particularly solar and wind, in meeting energy needs. Turkey became a party to the Paris Agreement in 2021 and set a net-zero emissions target by 2053. Under this framework, the country's wind and solar energy targets aim at decarbonization as well as energy independence.

New investments expected to accelerate from 2025 onwards

İbrahim Erden, Chairman of the Turkish Wind Energy Association (TÜREB), noted that despite high-capacity energy storage pre-licenses and capacity increases granted in 2022 and 2023 in the wind energy sector, there has been a visible slowdown in annual installation and commissioning processes, contrary to the high and increasing performance of previous years. Citing the reasons for the slowdown as the recently initiated permit processes for new plants assigned capacity and difficulties encountered in permit processes and financing for previously granted capacity increases, Erden continued: "Although we expect some recovery in this process during 2024, we anticipate it will continue partially and that new investments will increase from 2025 onwards. We also hope that wind measurements and oceanographic studies will continue in the designated potential areas for offshore wind work that began this year, and that feasibility and project studies for offshore plant investments expected to commence in subsequent years will accelerate." Erden emphasized that more than 200 gigawatts of wind energy installations have been realized in the European Union (EU) to date, of which 16 gigawatts is offshore, and noted that these facilities provided 16% of the electricity produced by the EU in 2022. Noting that all legal regulations made within the European Green Deal framework over the past two years include measures and support aimed at increasing wind investments on land and at sea, supporting plant and industrial investments and strengthening the supply chain, Erden concluded: "Most of the necessary equipment in wind energy has been supplied by European manufacturers, which are also strong global players. However, the sector now faces difficulties operating profitably and competitively due to supply chain problems, aggressive competition from Chinese manufacturers, and significant increases in financing costs. The latest of these regulations, the European Wind Energy Support Package, put forward significant support from project capacity allocation through auction mechanisms, financing support and ensuring European-sourced wind turbine equipment supply. With the effect of these supports, we expect wind investments in Europe to accelerate on both land and at sea as of 2024." Source