Page 4 - AfrElec Week 44 2020

AfrElec COMMENTARY AfrElec

Global wind market to

grow 18% in 2020 despite

pressure from pandemic

Resilience and falling costs have kept up wind growth in 2020, and
more expansion is set to come, writes Richard Lockhart

GLOBAL THE global wind industry has shown consider- While some project completion dates have
able resilience during the coronavirus (COVID- been pushed into 2021 due to the pandemic, the
WHAT: 19) pandemic, with 71.3GW of new capacity set report warned, 2021 is predicted to be a record
71.3GW of new wind to be brought online in 2020, 6% less than orig- year for the wind industry, with 78GW of new
capacity is forecast to be inally forecast and considerably more than the wind capacity forecast to be installed.
added in 2020, 18% more 60.4GW added in 2019. In terms of location, over 50% of the onshore
than in 2019 This sets the scene for record growth over wind capacity added between 2020 to 2024 will
the next five years, with 348GW of additional be installed in China and the US, led by installa-
WHY: onshore and offshore capacity expected by the tion rushes to meet subsidy deadlines.
Falling costs and the end of 2024, the Global Wind Energy Council Meanwhile, the offshore wind sector has been
need to decarbonise kept (GWEC) said this week. largely shielded from the impacts of the COVID-
up wind expansion during Meanwhile, an installation rush over the past 19 crisis.
the pandemic few months in China has raised the 2020 outlook GWEC Market Intelligence increased its
for offshore wind by 5% to 6.5GW. forecast for offshore wind by 5% to 6.5GW of
WHAT NEXT: The 71.3GW forecast is 18% more than the new installations in 2020, another record year
Strong regulatory and actual 2019 addition, which reached 60.4GW, for the industry, led by the installation rush in
policy frameworks are itself a 19% year-on-year rise from 2019. China.
needed to take advantage Offshore, the 6.5GW forecast for 2020 is 6.5% Until 2024 over 48GW of new offshore wind
to realise the carbon more than the 6.1GW added in 2019, according capacity is anticipated to be installed, with
neutrality pledge being to previousGWEC figures. another 157GW forecasted to be installed from
made by China, Japan Wind power is well-placed to act as a motor 2025 to 2030.
and others in 2020 of economic recovery in the post-COVID-19
world and will continue to be a driver of the Carbon neutrality
energy transition. “While the COVID-19 crisis has impacted every
Wind and other forms of renewables have industry across the world, wind power has con-
shown resilience this year, while oil and coal tinued to grow and thrive. This is no surprise
have seen fluctuating prices and huge drops in given the cost competitiveness of wind energy
demand,GWEC Market Intelligence noted. and the need to rapidly reproduce carbon emis-
sions. Fossil fuel industries face market fluctu-
Resilience ations and require bailouts to stay afloat, while
GWEC Market Intelligence said in its latest wind turbines across the world have continued
Market Outlook that the 6% fall for 2020 was to spin and provide affordable, clean energy to
significantly less than initial predictions of up to citizens everywhere,” said Ben Backwell, CEO
20% made in March, when the pandemic first ofGWEC.
made its economic impact, demonstrating the However, the report also warned that govern-
resilience of the wind power industry across the ments must ensure that energy markets and poli-
globe. cies allow a continued ramp-up in investment in
The Market Outlook predicted that by the wind and other renewables in order to tap into
end of 2024 total worldwide global capacity the full potential of wind power to drive a green
would reach nearly 1,000GW, 54% more than recovery.
in 2019. A crucial complement to promoting green
This means that the cumulative global wind energy is disincentivising investment in fossil
energy market will grow at a compound annual fuels.
rate of 8.5%, installing 348GW of new capacity. This issue has come into focus over the last

P4 www. NEWSBASE .com Week 44 05•November•2020