Wood Mackenzie forecasts an impressive compound annual growth rate of 10.1 percent for grid-connected wind power over the next ten years.
This surge will drive the cumulative installed capacity to an estimated 2.38 terawatts (TW) by the end of 2032, Wood Mackenzie said in its recent report titled “Global Wind Power Market Outlook Update: Q3 2023.”
Despite facing short-term challenges that prompted a net downgrade of 10.1 gigawatts (GW) from 2023 to 2025, the report underscores a promising long-term growth trajectory.
Luke Lewandowski, Vice President of Global Renewables Research at Wood Mackenzie, highlighted the encouraging activity in Western markets across North America, South America, and Europe. This includes revisions of national energy and climate plan (NECP) targets, positive auction developments, and strengthened repowering projections.
Moreover, the report highlights significant growth in Africa, driven by advancement in megaprojects. These advancements are expected to offset some of the short-term challenges faced by the global offshore wind market, particularly in China.
The report points out that China’s “Single 30” regulation, coupled with global inflation and supply chain challenges, has impacted offshore economics, resulting in project cancellations and postponements, causing a near-term slowdown in growth.
However, the new repowering policy in China is expected to boost the long-term global outlook. The annual build of wind power is projected to average 170 GW per year from 2026 through 2032, ultimately leading to the cumulative installed capacity of 2.38 TW.
To achieve this, the report estimates total capital expenditure (Capex) investment projections for wind power in the 10-year outlook to reach a staggering $2.5 trillion, with offshore activities accounting for $850 billion of this investment.