China is becoming the leader in wind energy and is driving order intake to a record level. With 43 GW of global orders in Q2 2022, including 35 GW for China, the market is breaking a new record.
China asserts itself in the wind energy market
China intends to accelerate its energy transition. It recently unveiled its decarbonization plan. The Chinese targets have resulted in a 36% increase in the global market. Wood Mackenzie estimates the amount of this increase at $18.1 billion.
In fact, China is supporting the construction of over 55 GW per year over the next 10 years. For the second quarter of 2022, the country recorded a record 35 GW of activity. These objectives place China as a leader in the wind energy market.
Luke Lewandowski, research director at Wood Mackenzie, says:
“Rapid technology adoption and government support have catapulted China to this leadership position.”
In addition, the country has also galvanized the offshore wind market with orders exceeding 6 GW in the second quarter. Offshore order intake in China has increased consecutively for three quarters.
Finally, three Chinese equipment manufacturers occupy the top positions worldwide. In fact, Envision, Mingyang and Goldwind rank in the top 10 in terms of global order intake.
A performance noticed by Luke Lewandowski:
“Goldwind, Mingyang and Envision were all very active in the second quarter with projects in China, accounting for more than 26 GW of activity between them.”
The global wind energy market breaks a record
With 61 GW ordered, the global wind market is experiencing a record pace in the first two quarters of 2022. In fact, this figure is 13% higher than that of the first half of 2021. It is the highest half-yearly figure ever recorded.
While China seems to be the undisputed leader, Europe is also seeing an increase. With 3.8 GW of new orders, the continent doubled its activity compared to the first quarter.
However, this is not the case in the United States. Orders did not exceed 2 GW in the first half. Wood Mackenzie points out:
“Demand is weakest in the United States. This is due to challenging market conditions, such as rising labor costs, inflation and supply chain disruptions.”
However, according to the group, the Inflation Reduction Act may boost order intake. If this is confirmed, the wind market may have a record year.
