September 27 (Renewables Now) - The world’s cumulative installed wind power generation capacity is forecast to reach 2.38 TW at end-2032, mostly driven by increased deployment in Western markets and Africa, according to analyst firm Wood Mackenzie.
The market for grid-connected wind power is set to expand at a 10-year compound annual growth rate of 10.1% regardless of the short-term challenges, the analyst said in its third-quarter market outlook update. The upward trend will be fuelled by favourable revisions of national energy and climate plan (NECP) targets, auction mechanisms and repowering initiatives across North America, South America and Europe.
“We are also tracking advancement of megaprojects in Africa that are driving growth. This will all help offset some of the short-term challenges in the global offshore market, particularly in China,” commented Luke Lewandowski, vice president, global renewables research at Wood Mackenzie.
For the offshore sector, in particular, the analyst expects some projects to be canceled or deployed due to major hurdles caused by high inflation and supply chain woes plus new regulations in China. The world’s second-largest economy, however, is seen to contribute to the long-term global outlook with 170 GW of annual wind additions between 2026 and 2032 thanks to new rules for repowering projects.
Wood Mackenzie estimates that the capital investment for new wind turbine additions within the 10-year period through 2032 will stand at USD 2.5 trillion (EUR 2.36bn). Around USD 850 billion of this total will be for offshore wind.
“This year and next will be more challenging than predicted earlier in the year, but the long-term trends are still very positive for cumulative capacity growth across all regions,” said Lewandowski.
(USD 1.0 = EUR 0.943)