The “Global Wind Report 2022” by the Global Wind Council (GWEC) highlights an important year in the sector, but demands a political push to achieve a zero-emission horizon

The year 2021 was confirmed as the second best year in history for the wind energy sector, as pointed out in the “Global Wind Report 2022” launched by the Global Wind Council (GWEC). Thus, during 2021, and despite the unstable situation caused by the ravages of COVID-19 on the supply chain and global economy, around 94 GW of capacity were installed worldwide; a figure 1.8% lower than the record achieved in 2020. And the blessed pandemic has had a clear impact on the slowdown of investments and installations in the wind sector in markets such as the United States, India or Taiwan, for example. Despite everything, the annual figures demonstrate, in the words of the GWEC itself, “the incredible resilience and upward trajectory of the global wind industry.”

With these 93.6 GW (the exact figure installed in 2021), global wind generation capacity amounts to 837 GW, accumulating sustained annual growth of 12%. Be that as it may, the association itself points out that this growth, although positive, is still insufficient to achieve the goals of zero net carbon emissions by 2050. Thus, to achieve these commitments, which would leave the rise in global temperatures at 1.5 degrees Celsius, would require quadrupling the installations of wind energy.

Year-over-year growth of the wind energy market

In statements by Ben Backwell, CEO of GWEC, the wind industry needs “more proactive policies” to achieve the aforementioned energy decarbonization goals. To this end, Backwell hopes that “the last 12 months will serve as an important call to action to make a decisive move forward and shift towards 21st-century renewable energy systems.” Backwell added that “the events of the past year, which have highlighted the exposure of economies and consumers to fossil fuel volatility and rising energy prices around the world, are symptomatic of the hesitant and disorderly energy transition; while Russia’s invasion of Ukraine has exposed the energy security implications of fossil fuel dependence.”

New wind power capacities in 2021 by region and by country

Wind sector trends in summary

Regarding trends, the report reflects that the two largest global wind energy installers – China and United States – developed less onshore wind capacity than last year, with 30.7 GW and 12.7 GW respectively; Although other regions such as Europe (19%), Latin America (26%), and Africa-Middle East (120%) made up for this decline by reaching new records.

On the other hand, the offshore wind power subsector (that installed in open waters, either anchored to the seabed or on floating platforms) experienced its best year in history, reaching a not inconsiderable figure of 21.1 GW in orders. The culprit? The Chinese giant, which accounted for 80% of this growth, dethroning the United Kingdom as the country with the greatest installed offshore wind energy capacity. Thus, 48% of offshore wind installations worldwide correspond to China, 22% to the United Kingdom, 13% to Germany, 5% to the Netherlands, 4% to Denmark, and the remaining 7% to the rest of the countries as a whole.

Furthermore, the report shows that the compound annual growth rate (CAGR) in wind power installations over the next five years would be 6.6%. While this figure in isolation may seem insignificant, this compound growth would mean the development of projects worth 557 GW of installed capacity between 2022 and 2026. However, all this growth will be conditioned by the major challenges that the industry will face on the horizon, including geopolitics, social impacts, the global supply chain and the resilience of the electrical system.