In its 2024 Global Wind Report, GWEC explores four key factors - investment, supply chains, system infrastructure, and public consensus, that will pave the way for accelerated wind energy growth towards achieving the goal of tripling renewables by 2030. These areas are crucial for ensuring a stable and orderly transition, mitigating risks and fostering sustainable development in the renewable energy sector.
STEP INTO THE RENEWABLE ENERGY LANDSCAPE OF 2024, WHERE THE WINDS OF CHANGE CONTINUE TO GATHER FORCE
3X RENEWABLE ENERGY BY 2030
COP28 2023: nearly 200 governments agreed to triple global renewable energy capacity and double energy efficiency improvements by 2030, aiming to limit global warming to 1.5°C. This historic milestone also highlighted wind energy as a crucial technology in combating climate change, praised for its increasing affordability and availability. Global wind industry growth must significantly speed up, aiming for annual wind installations to triple to at least 320 GW over the coming decade.
Renewables are one of the cheapest energy sources in the world. With stable funding, governments can revitalise their economies through manufacturing, power generation, green jobs, and enhanced energy security.
1. INVESTING IN WIND
The wind industry has struggled with revenue stability and supply chain profitability globally, leading to slower growth and delayed investments over the past three years. In 2023, these challenges have resulted in the renegotiation or cancellation of several large-scale offshore wind projects.
Climate finance faces significant challenges due to political realities and economic pressures in developed countries, making large capital transfers difficult. Achieving the global goal to triple renewable energy capacity by 2030 requires moving beyond cost considerations in wind energy development. The industry needs stable, ambitious policies that offer reasonable returns on investment to achieve scale.
2. BUILDING THE GLOBAL WIND SUPPLY CHAIN
By 2050, the worldwide wind power capacity must increase approximately eightfold from its current level, aiming to achieve around 8 TW of installed capacity. This ambitious goal needs a significant and continuous increase in investment across supply chains to develop essential production facilities, infrastructure, partnerships, innovation, and workforce capabilities to meet the demand for new wind installations.
Collaboration between the wind sector and policymakers is crucial to establishing effective workforce transition strategies. These plans should encompass STEM education and skill enhancement for both youth and current workers. Additionally, it is essential to swiftly identify areas within AI deployment that will demand new skill sets and competencies.
3. CREATING THE SYSTEM INFRASTRUCTURE
It's crucial to ensure the electricity transmission grid can transport energy from wind farms and other renewables to demand centres and consumers. Modernised grids are essential to meet increased electrification demands and enhance resilience to extreme weather events caused by global warming.
Smart grids, which dynamically integrate actions of all connected users, are essential for modern transmission networks. Incorporating digital technology, they enable a two-way exchange of energy and information between generators and users.
There's a crucial need to integrate grids across borders, developing modern, decentralised grid systems with digitalisation and smart applications for effective demand-side management. This interconnection enhances resilience and supports a more sustainable energy future.
4. ENCOURAGING PUBLIC SUPPORT
Social consensus and public support are crucial for the energy transition. It's essential to achieve shared agreement on the scale, impact, and planning of renewable energy expansion to mitigate conflicts and address concerns like job displacement and infrastructure development.
The key is for developers to prioritise early, transparent communication, respect indigenous rights, and address local concerns.
👷🏻♂️Over the years, the global wind industry workforce has expanded to approximately
1.4 million people and continues to grow
The wind industry must enhance outreach efforts to promote a diverse, equitable, and inclusive workforce. It's crucial for the sector to be seen as an appealing and supportive environment for individuals at all career levels, from apprentices to executives.
FUTURE OUTLOOK 2024-2028
🟠 The global wind energy market is expected to grow on average by 9% each year.
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💨 Global onshore outlook Over the next five years, onshore wind is projected to grow at a compound annual growth rate (CAGR) of 6.6%. Anticipated annual installations are expected to average 130 GW, resulting in a total addition of approximately 653 GW between 2024 and 2028. |
💨 Global offshore outlook Over the next five years, offshore wind is poised to expand at a remarkable compound annual growth rate (CAGR) of 28%. Anticipated annual installations are expected to average 27.6 GW, resulting in a total addition of approximately 138 GW. |
🌿 The wind industry is becoming more optimistic about its short-term and long-term growth
and more confident about its role in delivering the 3x target
Download the original 168 page report here: www.gwec.net/globalwindreport2024/
SOURCE: GWEC. (2024). Global Wind Report 2024 (Pages 1, 3, 10, 42, 63, 65, 73 99, 101, 151, 152).