Strong market activity in China helped the wind market set a record in the second quarter of the year, increasing the order intake for wind turbines to 43 gigawatts (GW).
According to Wood Mackenzie, this marked a 36% year-over-year increase to a projected $18.1 billion. 35GW of the 43GW came from China. The market has added 45GW so far this year, falling 10GW shy of its goal to install a median of 55GW annually over the next ten years.
According to Luke Lewandowski, research director at Wood Mackenzie, Goldwind, Mingyang, and Envision were all quite engaged in Q2 with projects in China, contributing to more than 26GW of development between them. China has risen to the top due to government assistance and rapid technology adoption.
With 61GW ordered globally over the course of the first two quarters, the wind market is likewise witnessing record-breaking activity. This is an increase of 13% from the first half of 2021.
While the US continues to be slow, with slightly less than 2GW in the first half, Europe also doubled its order inflow to 3.8GW during the quarter. China is booming, and Europe is also showing strength. Demand has been weakest in the US. This is a result of the challenging market conditions, including rising labour costs, inflation, and supply chain interruptions. As a result, it has been challenging for OEMs relying on the market, particularly those situated in the West, to secure fresh orders in the US. However, Wood Mackenzie expects business to increase in the second part of the year as a result of the IRA bill’s passage in the US. With the help of these new incentives, wind power plants are now more competitive with other technologies due to their increased economic viability. The wind turbine industry may be in store for a historic year if Chinese wind turbine purchases proceed at their current rate and US intake activity heats up.