In April 2024, the Global Wind Energy Council (GWEC) released the 2024 Global Wind Report. The Global Wind Energy Council is the international trade association for the wind power industry. Its mission is to ensure that wind power establishes itself as the answer to today’s energy challenges, providing substantial environmental and economic benefits.
GWEC is a member-based organisation that represents the entire wind energy sector. The members of GWEC represent over 1500 companies, organisations and institutions in more than 80 countries, including manufacturers, developers, component suppliers, research institutes, national wind and renewables associations, electricity providers, finance and insurance companies.
Working with the UNFCCC, REN21, the IEA, international financial institutions, the IPCC and the International Renewable Energy Agency (IRENA), GWEC represents the global wind industry to show how far we’ve come, but also to advocate new policies to help wind power reach its full potential in as wide a variety of markets as possible.
Key statements from the 2024 Global Wind Report:
At COP 28, nearly 200 governments agreed on the need to triple renewable energy capacity globally and double energy efficiency improvements by 2030, to get on-track for a pathway that limits global warming to 1.5°C. Wind energy was also recognised in the final decision text as a key climate change mitigation technology, which has become increasingly cost-effective and available.
The last year gives cause for hope that wind energy can significantly contribute to this landmark goal. There is rising political ambition on the global energy transition, as well as recognition at the highest diplomatic and institutional levels of the urgency to close the “say/do gap” when it comes to implementing renewable energy targets. In 2023, a record-high 117 GW of new wind power was installed worldwide, a 50% increase from 2022.
The top 12 takeaways from this year’s Global Wind Report
1. Meaningful action is needed to mobilise larger volumes of investment into wind energy.
2. Growth at scale comes with stable and ambitious policy environments that offer reasonable returns on investment
3. Collaborate to build a secure global supply chain with healthy, managed competition.
4. Trade policy should foster competitive industries, not push higher costs onto end-users.
5. New production models are needed to industrialise and decelerate the turbine platform race on size.
6. Ensure the advantages of AI and machine learning outweigh the drawbacks.
7. Close the gap on grids: Grids must become a national and cross-cutting policy priority for countries to meet their energy security, climate and economic growth goals.
8. Scale modern and flexible power systems.
9. Take action to accelerate permitting of wind projects.
10. Community engagement is more critical than ever.
11. Guard against misinformation and disinformation that sow doubt in wind and renewable energy.
12. The global wind industry must fulfil its role in delivering a just and equitable transition.
Important references to India in the report:
While thermal power continues to dominate the power generation mix, India is expected to more than double its onshore wind and solar PV capacity by 2028 and achieve its milestone of 50% non-fossil fuel generation before 2030. Globally, India ranks fourth in total wind installations, with 45 GW of installed onshore wind as of January 2024. It is the second- largest wind market in the Asia Pacific region after China.
In 2023, due to a range of policy and institutional interventions by central and state governments, over 2.8 GW onshore wind capacity was commissioned – the highest annual installation level since 2017. GWEC expects continued recovery and has revised its onshore wind outlook for 2024-2028 to 22.8 GW. As per the National Electricity Plan of the central government for the period ending 2032, India’s installed wind capacity is estimated to amount to around 73 GW in 2026-2027 and 122 GW in 2031-2032.
There is more than 13 GW of wind projects in the pipeline in India as of September 2023. To advance the attainment of targeted volumes of annual wind and renewable auctions, the central government has provisioned administration of auctions by public sector undertakings (PSUs) such as NHPC, NTPC, Indian Railways, SJVN and PTC. State utilities have announced standalone wind, RTC, FDRE and hybrid auctions totalling 21 GW of capacity in 2023.
The step-up in wind demand will accelerate onshore wind growth, alongside other policy enablers Despite positive policy and regulatory momentum, the current onshore wind forecast through the end of the decade still leaves a sizeable gap between wind market growth and the government’s 140 GW target of installed capacity by 2030.
A few challenges continue to deter progress on onshore wind, including state-level issues for right of way, PPA sanctity and delayed payments, as well as land allocation. The industry is also experiencing increased turbine prices due to commodity price inflation and higher cost of financing.
Good progress has been made to finalise the first offshore wind seabed tender, including the publication of the revised ‘Strategy Paper for Establishment of Offshore Wind Energy Projects’ showcasing three models to award 37 GW of capacity through 2030. The offshore wind lease rules have been released as well, and in early February 2024, the central tender agency, SECI, announced offshore wind seabed leasing of 4 GW capacity in Tamil Nadu.
Viability gap funding (VGF) has also finally been approved for an initial 1 GW of offshore wind capacity. GWEC’s India Offshore Wind Working Group has been proactively contributing industry inputs on offshore wind developments to authorities.
To achieve offshore wind installation progress, India needs to address key market barriers such as readiness of ports and grid infrastructure, availability of vessels, supply chain or import strategy, assurance for offtake, streamlined permitting and clearances, community partnership and the availability of a local skilled workforce.
As the second-largest hub for onshore wind turbine assembly and key component production in the Asia Pacific, India is strategically well-placed for wind manufacturing expansion. It can benefit from a “China + 1” approach adopted by many major supply chain actors. Domestic manufacturing is sufficient to meet India’s own onshore wind demand through 2030, leaving additional export and trade value ahead if India can significantly scale up manufacturing capacity.
India can make additional efforts to reduce imports of a few large components such as castings, generators and pultrusion carbon fibre. For example, in January 2024 at the Vibrant Gujarat Summit, Reliance announced that it would set up India’s first carbon fibre facility at Hazira, Gujarat, for use in blade manufacturing in the wind sector.
Additionally, the successful award of offshore wind tenders is likely to attract investments in domestic offshore wind manufacturing. The attractiveness of financial and non-financial incentives offered by the central and state governments will be a determining factor in this regard.