Who Is The Largest Market In Wind Power?

Wind power is one of the fastest growing sources of renewable energy globally. In recent years, the wind energy market has expanded rapidly due to improving technology, government incentives, and growing awareness of the need to transition to clean energy sources. According to the U.S. Department of Energy, the global wind power market size reached $112.23 billion in 2022 and is projected to grow at a compound annual growth rate of 6.5% from 2022 to 2030.

Many countries around the world are investing heavily in wind power to reduce carbon emissions and meet renewable energy targets. Wind turbines provide clean, renewable electricity without producing greenhouse gas emissions. With the cost of wind power decreasing dramatically in recent decades, wind energy is becoming more cost competitive with fossil fuel sources.

This article will provide an overview of the global wind power market, examining key trends and statistics on the largest markets for wind energy worldwide. It will analyze growth projections and discuss factors driving future expansion of the wind power industry globally.

China

China is the largest wind power market in the world. According to Wikipedia, China added 71.6 GW of wind power generation capacity in 2020 to reach a total capacity of 281 GW. China accounted for over 50% of global wind power installations in 2020. The country has seen rapid growth in wind power due to supportive government policies aimed at reducing dependence on fossil fuels and promoting renewable energy.

China’s 13th Five Year Plan set a target of 210 GW of wind power capacity by 2020, which it exceeded. The 14th Five Year Plan sets a new target of over 480 GW by 2025. To spur development, the Chinese government offers subsidies for wind power generation and provides guaranteed pricing for wind power fed into the grid. The government has also invested heavily in wind power equipment manufacturing, making China the largest producer of wind turbines in the world.

Key provinces for wind power in China include Inner Mongolia, Xinjiang, Gansu, Hebei, and Jiangsu, which benefit from good wind resources. China is also expanding into offshore wind farms, with over 16 GW of capacity along its eastern coastlines. With robust policy support and immense market potential, China is expected to cement its position as the undisputed global leader in wind power for years to come.

United States

The United States has seen tremendous growth in wind power capacity over the past decade. As of 2022, the U.S. has over 141 GW of installed wind power capacity according to this source. This is a dramatic increase from 2010 when the U.S. had just 40 GW of installed capacity. The U.S. Department of Energy projects continued strong growth, with wind power accounting for 22% of new electricity capacity installed in 2022.

Several federal and state policies have driven the growth in U.S. wind power. The federal production tax credit has provided financial incentives for wind farm development. State-level renewable portfolio standards have required utilities to source a percentage of power from renewables. Government funding for wind research and development has also advanced wind turbine technology and lowered costs. Key wind power states like Texas, Iowa, Oklahoma and California have policies favorable to wind farm permitting and grid integration.

The U.S. has vast onshore wind resources, especially in the Midwest and Great Plains. Offshore wind is an area of potential future growth for coastal states. In total, the U.S. has the technical potential to install over 10,000 GW of wind capacity according to the Department of Energy. With supportive policies and declining costs, wind power is poised for continued expansion in the U.S. energy mix.

Germany

Germany is the third largest market for wind power capacity in the world. According to Wikipedia, Germany had 55.6 gigawatts (GW) of installed wind capacity at the end of 2017, with 5.2 GW coming from offshore wind farms.[1] Germany continues to rapidly expand its wind power capacity, especially onshore wind. In the first half of 2023 alone, Germany added 3.77 GW of new onshore wind capacity, a 60% year-on-year increase.[2]

A major driver of Germany’s wind power growth is the country’s Energiewende policy, which aims to transition Germany to an energy system based on renewable sources. The goal is for renewables like wind and solar to provide at least 80% of Germany’s electricity by 2030. While Germany is making progress, experts say the pace of wind power expansion needs to accelerate to reach the 2030 target.[2] Germany’s excellent wind resources, especially in the north, make it well-suited for harnessing wind power.

India

As of 31 December 2023, the total installed wind power capacity in India was 44.736 gigawatts (GW), making it the fourth largest installed wind power capacity in the world^[1]. India has set a target of reaching 140 GW of wind power capacity by 2030^[2]. The government has announced a target of 500 GW of renewable energy by 2030, which includes 60 GW from wind power^[3]. Some major initiatives by the Indian government to promote wind power include tax breaks, preferential tariffs, and creating renewable purchase obligations for utilities.

Spain

Spain has emerged as one of the top countries for wind power capacity over the last decade. As of 2020, Spain had over 27 GW of installed wind power capacity, making it the fifth largest market globally [1]. The growth of wind power in Spain has been significant – in 2000, installed capacity stood at just 2.5 GW. But rapid expansion occurred in the late 2000s, with over 10 GW added from 2007 to 2010 alone [2].

The regions with the most wind power capacity in Spain are Castilla y León, Castilla-La Mancha, and Andalusia. Major companies involved in wind power in Spain include Iberdrola, Acciona Energía, EDP Renováveis, and Siemens Gamesa. Spain also had 117 MW of offshore wind power capacity as of 2020, but more major offshore projects are planned for the coming decade.

In 2021, Spain installed 842 MW of new wind power capacity. The Spanish Wind Energy Association has set a target of increasing total capacity to 60 GW by 2030 and 137 GW by 2050 as part of Spain’s renewable energy transition [3].

United Kingdom

The United Kingdom is one of the leading markets for wind power capacity in the world. According to the International Energy Agency’s Wind TCP, the UK had a total installed wind power capacity of 25,700 MW as of 2021, with 11,200 MW added that year alone (IEA Wind). Statista reports that installed wind power capacity reached 28,537 MW in 2022 (Statista). The growth has been driven by significant expansion in offshore wind farms around the UK coastline. According to Wikipedia, total offshore wind capacity was 11.3 GW at the start of 2022, making the UK the world leader in offshore wind (Wikipedia).

Government policies have played a key role in the growth of UK wind power. Financial incentives like Renewables Obligation Certificates, as well as competitive auctions for contracts have made large-scale wind projects attractive for energy companies. The UK has also invested heavily in offshore wind technology and infrastructure to unlock the country’s substantial offshore wind resource. Key offshore wind projects like the Hornsea wind farm in the North Sea have added significantly to the country’s wind power fleet. With the vast potential remaining, the UK is expected to continue being a major player in the global wind power market.

Rest of the World

While China, the United States, Germany, India, Spain, and the UK lead the world in wind power capacity, several other countries are also developing their wind industries. Here are a few:

Brazil has over 22 GW of installed wind capacity and ranks 8th globally. Wind power accounts for 10% of Brazil’s electricity production, and its high wind speeds and ample coastline offer untapped potential for further growth. The government has set ambitious goals for renewable energy and wind power expansion.

Canada has 13.5 GW of installed wind capacity, ranking 9th globally. Wind energy provides around 6% of Canada’s electricity demand. Quebec, Ontario, and Alberta are the leading wind power provinces. The Canadian government aims to source 90% of electricity from renewable sources like wind by 2030.

France has over 17 GW of wind power capacity, supplying 8% of its electricity demand. With Europe’s second largest exclusive economic zone, France aims to expand offshore wind and reach 40 GW total wind capacity by 2028.

The Netherlands, Sweden, Italy, and Poland each have over 6 GW of installed wind capacity. Ireland and Austria also have high wind power penetration, with wind supplying over 30% of electricity demand in both countries. Many European nations are quickly ramping up wind power to meet EU climate goals.

Future Outlook

The global wind energy market is projected to continue experiencing strong growth in the coming decades. According to the U.S. Department of Energy, global wind power capacity is forecast to reach over 2,110 gigawatts (GW) by 2050, more than triple 2020 installation levels. [1]

In the United States, the DOE expects wind capacity to reach 404 GW by 2050, driven by growth in land-based and offshore wind farms. The DOE analysis shows U.S. wind capacity growing from around 122 GW in 2020 to over 180 GW by 2030. [2]

China is projected to remain the largest market for new wind power installations globally, with over 720 GW forecast by 2030 according to BloombergNEF data. However, Europe and the U.S. are also expected to see continued wind capacity growth in the coming decade. [3]

Conclusion

This article has provided an overview of China’s leading position as the largest market in wind power. To summarize, China currently has the highest installed capacity of wind power globally, followed by the United States and Germany. Factors that have enabled China’s rapid growth in wind power include strong government policy support, ample wind resources, and heavy investment by state-owned utilities.

While other major markets like the US, Germany, India, and Spain have also expanded wind power considerably, none have yet matched the scale achieved by China. Going forward, most projections point to China maintaining its commanding lead thanks to continued heavy investment and capacity additions. However, other nations are also ramping up wind power deployment and technological improvements could aid growth worldwide. But for now, and the near future, China remains firmly established as the world’s largest market when it comes to harnessing the power of wind.