Global wind energy markets: Chinese dominance and expanded EU industrial policy
According to 2024 data from Wood Mackenzie, Chinese wind turbine manufacturers now lead the global market, with Goldwind, Envision and Mingyang securing the top three positions for the first time. Goldwind installed 20GW – an increase of over 20% compared with 2023 – while the Chinese market grew by nearly 12% to reach a record 80GW, accounting for more than 60% of global capacity.
Outside China, wind installations fell by 9%, impacting several Western original equipment manufacturers. Companies such as Vestas – the leading non-Chinese manufacturer – and Siemens Gamesa, which led offshore installations despite delays, restructured operations, outsourced production to Asia, and simplified product portfolios in response to challenging market conditions. These measures reflect the pressure on established Western firms as they adapt to lower installation volumes and shifting global dynamics.
In the USA, wind energy projects have faced significant headwinds. Federal executive orders pausing permits on federal land will most likely slow new developments, potentially affecting electricity end users. According to the US National Power Demand Study by S&P Global Commodity Insights, electricity demand is projected to increase by 35 to 50% between 2024 and 2040, driven by data centres, manufacturing, electric vehicles and space-heating electrification. To maintain grid reliability, the study estimates that by 2040, the USA will require an additional 730 to 765GW of renewables, 160 to 175GW of storage, 60 to 100GW of gas, and 10 to 25GW of nuclear and geothermal. Despite efficiency improvements expected to reduce demand by 8%, the rapid increase in electricity consumption is outpacing the development of new power generation, creating an urgent need for faster permitting and grid expansion. Let’s hope the policymakers in Washington and in key wind states pick up this need as well.
Across Europe, the wind energy transition has gained momentum. According to WindEurope’s 2024 statistics, the European Union (EU) added 13GW of new wind capacity while the wider European region reached a total of 16.4GW. Onshore installations accounted for 84% of this new capacity, with countries such as Germany, the UK, France, Finland, Turkey, Spain and Sweden all contributing to the expansion. Wind energy now supplies 20% of Europe’s electricity consumption, with Denmark generating up to 56% of its power from wind.
A key driver of Europe’s future energy strategy will be the European Commission’s Clean Industrial Deal. The deal will mobilise over € 100 billion to finance the clean transition, including new state aid measures for renewable energy projects, an expanded Innovation Fund, and the creation of an Industrial Decarbonisation Bank. The European Investment Bank will introduce financial instruments to support grid component manufacturing, clean technology, and power purchase agreements. The deal focuses on energy-intensive industries and clean technology, providing support for high-energy sectors to transition to electrification and reduce emissions.
Not only in the USA but also in Europe, permitting is a bottleneck. The EU has introduced improved permitting rules, but most countries have yet to fully implement them. Grid expansion is another challenge, with hundreds of gigawatts of new wind projects awaiting grid connection permits. Governments must prioritise efficient permitting processes, improve grid planning, make anticipatory investments, and unlock private finance to support future wind energy development.
Let’s hope that policymakers act decisively to ensure continued progress in global wind energy deployment.
Enjoy reading,
Floris Siteur
Publisher
