GWEC: Positive outlook for global wind energy sector
South Africa, Egypt, Kenya and Morocco are expected to lead onshore wind installations, totaling over six gigawatts (GW) of new capacity, by 2023. In addition, Egypt was responsible for the highest capacity additions on the continent in 2018, adding a total of 380 megawatts of wind.
This according to the 14th edition of the Global Wind report, released earlier this month by the Global Wind Energy Council (GWEC). In its report, the GWEC attempts to present a comprehensive global view of both the onshore and offshore wind energy sector, providing a strong future outlook for wind energy, with over 300GW of capacity expected to be installed by 2024.
The main drivers of new installations globally were cited as market-based mechanisms – including tenders, auction and Green Certificates – with 51.1GW of new installations reported in 2018, marking a positive year for the wind energy industry.
“The dominance of onshore wind power is not surprising given continued and growing investments, with market-based mechanisms accounting for 35 percent of total installations. 2018 was also a pivotal year for the offshore industry – if governments remain committed, offshore wind will become a truly global market in the next five years,” said Karin Ohlenforst, Director of Market Intelligence at GWEC.
The report highlights three significant trends in global sector growth, namely changing business models of industry participants, increased volume in corporate procurement outside of already-matured markets and the opening of wind energy opportunities through value-focused solutions such as hybrid-generation plants.
The report adds that further growth can be stimulated by increased governmental support in reaching renewables targets, as well as auction and tender programs, with commercial opportunities for wind energy increasing due to proven low costs and the growth of bilateral agreements such as corporate Power Purchase Agreements.