What's Happening?
The global wind industry is projected to install a record 170 gigawatts (GW) of new capacity by the end of 2025, according to Wood Mackenzie. This growth is largely driven by substantial onshore developments in China, despite setbacks in other key markets like the US. The industry is expected to achieve historic scale over the next decade, with global cumulative wind capacity reaching 1 terawatt by 2031.
Why It's Important?
The expansion of wind capacity is crucial for global efforts to transition to renewable energy sources. This growth could significantly reduce reliance on fossil fuels, contributing to climate change mitigation. However, the industry faces challenges, including policy uncertainties and sea-use conflicts in China, which could impact project timelines and overall growth. Successful navigation of these issues is essential for achieving the projected capacity increases.
What's Next?
The wind industry must address policy uncertainties and sea-use conflicts to maintain its growth trajectory. Stakeholders will need to adapt to evolving policy landscapes and find solutions to these challenges to ensure continued expansion. The development of green hydrogen markets could also play a role in supporting wind energy growth, although current slowdowns limit this potential.
