Genel
Global climate targets under threat without a secure wind energy supply chain
New report outlines route for global supply chain resilience and growth, based on industry and government cooperation
Bottlenecks in the global wind industry supply chain could leave the world with only three-quarters of the wind energy installations needed for a 1.5°C pathway by 2030, i.e. a 650 GW gap to meet climate targets. The supply chains in the wind sector for minerals, components and key enabling infrastructure like ports and platforms are not fit-for-purpose for a net zero world, where today’s global installed wind fleet must scale up by roughly three times by the end of the decade.
Solutions exist, but require stronger collaboration between government and industry, as well as among supply chain actors themselves, according to a new report “Mission Critical: Building the global wind energy supply chain for a 1.5°C world” from the Global Wind Energy Council, in partnership with Boston Consulting Group. The report assesses the implications for energy transition policy across four future macroeconomic scenarios by 2030, and how broader global developments like rising inflation and open-door trade versus increased trade barriers will impact the wind supply chain landscape, market size and sustainability of industry returns.
The first-of-its-kind comprehensive analysis across key components and materials in the sector finds that the wind supply chain is highly globalised, with a strong focus in China for rare earth element refining and component manufacturing in particular. A resetting of political priorities towards industrial resilience and security in many areas of the world, including Europe and the US, in addition to increasing market volatility, poses risks for creating a competitive and sufficiently scaledup global supply chain. Policy and regulatory issues around permitting, grids, investment certainty and localisation are also holding back volume in the wind pipeline, which could otherwise send positive demand signals for supply chains to scale.
“This is a watershed moment for getting trade and industrial policy in shape for a 1.5°C world. Wind energy will form the backbone of the future energy system based on renewables, but in order to enable a tripling of the world’s wind installations by 2030 we require a globalised, secure and competitive supply chain.Governments must work with the industry and the industry must work together to ensure the sector meets the enormous demand for clean and secure energy within this decade. Investment in supply chains has seen setbacks in many regions of the world, largely caused by challenges in policy, regulation and market design while industry itself needs to step up to the climate emergency by embracing standardisation with more global and modular technology design. Everyone has a role to play in this mission to create stronger and more resilient supply chains for the energy transition.”
Ben Backwell, Global Wind Energy Council CEO
“The wind industry manufacturing footprint must be able to do two very different things at the same time, deliver on the projected industry output (ramping up to 190 GW in 2030) and prepare to support the 1.5° transition which would require 70% more capacity (320 GW in 2030).”
Lars Holm, Partner and Director at BCG’s Centre for Energy Impact
The report explores the impact of four different macroeconomic scenarios, and how the wind industry can best navigate uncertainty and change in the global market. An ‘Open Door’ approach would yield the highest net positive impact in wind growth to reach climate goals, but the report anticipates the ‘Increased Barriers’ scenario as the most likely to materialise in this decade.
1)An Open Door scenario with growing regional collaboration on both supply and demand.
2)An Increased Barriers scenario where mar- kets increase trade barriers and turn attention towards domestic investment.
3)Economic Downturn where investments dry up and attention focuses towards low- cost rather than low-emission technology.
4)Global Escalation where increasing cross-border conflict reduces trade and shifts energy focus from decarbonisation towards availability.
The report outlines six key action areas that would set the conditions for large-scale wind supply chain growth and security:
- Address basic barriers to wind industry growth in land, grids and permitting to increase volume and predictability
- The wind industry must standardise and industrialise
- Regionalisation will be needed to support growth and resilience, while maintaining a globalised supply chain
- The market must provide clear and bankable demand signals
- Trade policy should aim to build competitive industries, not push higher costs onto end users
- Fundamental reform of the power market reform underpins further wind growth
Through a coordinated global effort from industry and policymakers, challenges in the global wind supply chain can be resolved over the course of this decade. Actions taken now in these six areas will help to foster a highly resilient and cost-efficient wind industry to decarbonise the world.
About GWEC
GWEC is a member-based organisation that represents the entire wind energy sector. The members of GWEC represent over 1,500 companies, organisations and institutions in more than 80 countries, including manufacturers, developers, component suppliers, research institutes, national wind and renewables associations, electricity providers, finance and insurance companies.
Find us at: https://gwec.net/
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Doğuhan Enerji, which provides turnkey services in road, platform, and foundation construction, electrical and cabling works, substation installation, control building construction, and overhead line construction for wind energy projects, also strengthens the European renewable energy sector with Helios Energy, its Romania-based subsidiary established in early 2022.
Operating a consistently with precision and dedication across all project scales, ranging from 1 MW to over 100 MW, Doğuhan Enerji has grown by successfully delivering some of the market’s largest and most significant projects. With 28 years of industry presence and participation in over 200 projects, the company has completed the construction of more than 1,500 turbines, contributing to a total capacity exceeding 2,500 MW. Beyond its core expertise in wind energy projects, Doğuhan Enerji has been providing solutions for solar power plant projects globally for the past three years. Through its European subsidiary, Helios Energy, the company has undertaken the construction and installation of the 155 MW Ratești Project, the largest solar power plant in Eastern Europe, completing it within a record-breaking period of just eight months.
Helios Energy, which has achieved one of the fastest growth rates in the sector by reaching a 600 MW project portfolio within just three years, provides end-to-end turnkey solutions for solar energy projects, covering every stage from construction and foundation works to mechanical and electrical installations, as well as substation construction, SCADA integration, and commissioning processes. In addition to its operations in Romania, Helios Energy is also active in Germany, Hungary, and Italy. Globally, the company has already secured agreements for 210 MW of wind and solar power plant projects to be delivered by 2025.
Striving for 20% Growth
Building a project portfolio that surpasses 2,500 MW, Doğuhan Enerji continues to leave its mark wherever the wind blows, actively participating in project developments across almost every region of Türkiye. To further expand its operational capacity, the company has been investing in machinery and equipment and plans to continue these investments throughout 2025. With the initiatives launched in the last quarter of 2024, Doğuhan Enerji aims to grow its operations in Türkiye and international markets by 20% in 2025.
The global Wind Power Market size was valued at USD 95.16 billion in 2023 and is projected to grow from USD 106.42 billion in 2024 to USD 254.27 billion by 2031, exhibiting a CAGR of 13.25% during the forecast period. Growing adoption of offshore wind farms and surge in wind energy projects are augmenting market growth.
The growing adoption of offshore wind farms is a significant trend in the wind power market. Offshore wind farms are being increasingly developed due to their numerous advantages over onshore counterparts. They benefit from stronger and more consistent wind speeds prevalent over the ocean, leading to higher energy yields and improved efficiency.
Additionally, offshore wind farms reduce land use conflicts, as they are situated away from populated and agricultural areas. Government incentives and advancements in technology are key factors fueling this trend. Many countries are offering subsidies, tax incentives, and supportive policies to promote the development of offshore wind projects.
Technological advancements, such as the development of larger and more efficient turbines designed to withstand harsh marine environments, are making offshore wind farms more viable and cost-effective. This trend contributes to lowering carbon emissions and reducing reliance on fossil fuels, thereby playing a crucial role in meeting the increasing global demand for renewable energy sources.
Wind Power Market Trends
The integration of wind power with energy storage systems is an emerging trend that addresses its intermittency, which represents a significant limitation of wind energy. By pairing wind turbines with advanced storage solutions, such as lithium-ion batteries or pumped hydro storage, the energy generated during peak wind periods is stored and used during times of low wind activity or high demand. This trend is gaining significant traction due to advancements in energy storage technologies, which are enhancing efficiency and cost-effectiveness. The combination of wind power and storage systems enhances the reliability and stability of the electricity supply, making wind energy a more viable and consistent source of renewable energy.
Additionally, integrated storage systems help mitigates the impact of sudden fluctuations in wind power generation on the grid, thereby reducing the need for backup fossil fuel-based power plants. This trend is supported by government policies and incentives aimed at promoting the adoption of renewable energy and energy storage technologies.
Wind Power Market Regional Analysis
Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific wind power market accounted for a significant share of 36.25% and was valued at USD 34.50 billion in 2023, reflecting the region’s significant commitment to renewable energy development. The rapid expansion of wind power in Asia-Pacific is reinforced by the growing energy needs of its populous nations, particularly China and India, which are making substantial investments in both onshore and offshore wind projects. China has emerged as major country in wind power capacity due to its aggressive renewable energy targets, extensive government support through subsidies, and favorable policies.
Moreover, India’s national wind-solar hybrid policy and other initiatives are bolstering wind energy deployment. The region’s abundant wind resources, coupled with technological advancements and decreasing costs of wind power generation, are propelling domestic market growth. Additionally, the increasing environmental awareness and the urgent need to reduce greenhouse gas emissions are prompting countries across Asia- Pacific to adopt wind energy as a key component of their energy strategies.
North America is set to grow at a robust CAGR of 13.35% in the forthcoming years, largely attributable to several factors such as ongoing technological advancements, supportive regulatory frameworks, and increasing investments in renewable energy. The incentives are prompting utilities and independent power producers to invest in new wind projects. Additionally, advancements in wind turbine technology, including the production of larger and more efficient turbines, are reducing the cost of wind energy, thereby enhancing its competitiveness compared to traditional energy sources.
For instance, in 2023, according to US Department of Energy, Wind energy in the United States contributed to the reduction of 336 million metric tons of carbon dioxide emissions annually, which is equivalent to the emissions generated by 73 million cars.
Canada is further supporting this growth with its favorable wind resources and supportive provincial policies aimed at expanding renewable energy capacity. The commitment to sustainability and reducing carbon emissions is leading to the widespread adoption of wind energy in North America.
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