Whispers in the Wind: The global wind power sector, once seen as a beacon of sustainable energy growth, is now confronting a decade marked by slower expansion than initially anticipated. The outlook, recently revised by consultancy firm Wood Mackenzie, points to several key factors contributing to this tempered forecast.
One of the primary contributors to this recalibration is the financial turbulence experienced by the U.S. offshore wind industry. Powerhouses in the renewable energy landscape, including Orsted, BP, and Equinor, have grappled with substantial impairments in their U.S. offshore wind portfolios. The culprits? Soaring financing costs and persistent delays in the supply chain have significantly impacted their projects, leading to financial setbacks.
Wood Mackenzie’s downward adjustment amounts to a reduction of 29 gigawatts in the forecast for global wind power capacity by the end of 2032. This translates to a revised cumulative installed capacity of 2.35 terawatts. While on the surface, this may seem like a substantial cut, it represents less than a 2% deviation from the previously optimistic projections. What is noteworthy, however, is that over 80% of this reduction is attributed to challenges faced in key markets such as the United States and China.
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Orsted, recognized as the world’s largest offshore wind farm developer, notably canceled its Ocean Wind project in New Jersey. This cancellation, coupled with supply chain disruptions, is expected to defer nearly 8 gigawatts of U.S. offshore projects beyond 2032. Consequently, the United States is projected to achieve only around half of its ambitious goal of installing 30 gigawatts of offshore wind by 2030.
The challenges in the U.S. are not isolated incidents. Wood Mackenzie points to sluggish approval processes and project execution concerns in China as additional factors contributing to the revised outlook. The consultancy identified a near-term slowdown in the Chinese project market, citing tightened permit requirements and project cancellations. However, it emphasized that the onshore wind outlook for China from 2026 to 2032 remains unchanged despite these short-term challenges.
Wood Mackenzie Vice President of Global Renewables Research Luke Lewandowski acknowledged near-term obstacles but stressed solid global wind power market fundamentals. Despite project execution issues in China and the maturation of the U.S. offshore market, the industry is likely to recover, demonstrating its resilience.
Finally, while change is moving slower than expected, worldwide wind power’s long-term outlook is optimistic. The sector is overcoming obstacles, reacting to market changes, and preparing for future growth.
Our Reader’s Queries
How do you get whispers in the wind quest?
Firstly, have a conversation with Glory. Next, locate three Dandelion Seeds. However, if you already possess enough Dandelion Seeds in your inventory, this step can be skipped. Present the Dandelion Seeds to Glory and then proceed to the peak of the Anemo Archon statue. Scatter the Dandelion Seeds and finally, converse with Glory once again.
How do you get the love of Godwin?
Achieving For the Love of Godwin falls under the Wonders of the World category. To successfully accomplish this feat, players must complete Whispers in the Wind a total of 5 times.