July 9 (Renewables Now) - The global wind power market will expand by 60% in terms of capacity additions during the next five years, with annual installations seen at 71 GW on average, according to Wood Mackenzie Power & Renewables.
In its “Global Wind Power Market Outlook Update: Q2 2019”, released on Monday, the analyst lifts its forecast for wind turbine additions in 2019-2028 by 11 GW, equal to a 1.5% increase from the previous quarter. The annual average additions between 2024 and 2028, meanwhile, are expected to be 76 GW.
“Overall, the outlook is positive and global wind power continues to prosper due to both economic and social benefits,” said Luke Lewandowski, Wood Mackenzie Power & Renewables Director. He noted that a 5-GW upgrade in the offshore sector will translate into 129 GW of fresh capacity and a compounded annual growth rate (CAGR) of 26%.
In regional terms, the outlook for the US market has been lifted by 16% sequentially in view of the rush to develop project before the expiry of the full production tax credit (PTC) in 2020. In China, a 2.9-GW quarter-on-quarter expansion is anticipated as receiving feed-in tariff (FiT) support in the onshore sector requires projects to be brought online by end-2020. Offshore developers, meanwhile, need to commission their projects by end-2021.
Regardless of the uptick in Northern Europe, the European market is set for a meager 0.6% quarterly upgrade due to permitting hurdles and undersubscription of onshore tenders in Germany and France. The forecast for Africa and India was downgraded by 2% and 4%, respectively.