GWEC: Wind Growth is Back on Track

According to a new analysis by GWEC Market Intelligence in its latest Q4 2020 Wind Energy Auction Update, nearly 30 GW of new wind power capacity was awarded globally through auctions in the second half of 2020, which is a slight increase compared to the 28 GW awarded during H2 2019. That is a clear sign that the industry is back on track to drive the global energy transition.

After a slump in the first half of 2020, the sector bounced back in the second half of the year as markets began overcoming the impacts of COVID-19. Overall, nearly 35 GW of new wind power capacity was auctioned globally in 2020.

“Although there were initial concerns from the industry that the COVID-19 pandemic would severely impact the pipeline of wind power projects across the world, the sector’s impressive comeback in Q3 and Q4 2020 has shown that wind power has emerged from the crisis stronger than ever, with 2021 now expected to be a record year for new auctioned capacity” said Feng Zhao, Head of Strategy and Market Intelligence with GWEC.

This influx of auctioned capacity in H2 2020 was led by China. During the first half of the year, no new capacity was awarded, but the market recovered formidably in Q3 2020 with 12 GW of new wind capacity through auctions. This momentum continued into Q4 2020, with 11 GW of new wind power projects approved in the last two months of the year alone. In total, China accounted for 67 per cent of the global wind power capacity auctioned and awarded in 2020, with subsidy-free onshore wind projects accounting for 96 per cent of the approved capacity in China.

In addition to the remarkable growth in China, there were eight other countries awarding new wind power capacity in H2 2020, including India (2.2 GW), Germany (1.5 GW), Poland (900 MW),  The Netherlands (759 MW) Ireland (479 MW), Greece (472 MW), France (258 MW), and Ecuador (110 MW). Other countries such as Brazil, Chile and the US have now rescheduled cancelled auctions to take place in 2021.

“In order to have a chance of achieving the decarbonisation targets set out in the Paris Agreement, we need to be installing around 180 GW of new wind capacity every year between now and 2050. This means we are still only scratching the surface of the annual installation levels we need to achieve net zero, and must continue building up the project pipeline through effective financing mechanisms such as auctions”, points out Zhao.