Onshore Wind Capacity Additions: Rebound and Record-breaking Expectations for 2023
“Wind energy will play a key role in our effort to produce clean, renewable, and reliable energy.” – Brian Schweitzer
Despite the challenges faced in 2022, the onshore wind sector has proven its resilience and is forecast to rebound and achieve record-breaking capacity additions in 2023. This optimistic outlook is largely fueled by the easing of Covid-related restrictions, the resolution of supply chain issues, and the sustained policy support for renewable energy technologies.
Onshore Wind: A Rocky Journey in 2022
The path for onshore wind was less smooth in 2022, with annual wind capacity additions falling 21% from 2021 to 2022. This decline marked the second consecutive year of reductions since the record-level expansion in 2020. Notably, policy uncertainty in the US, ahead of the promulgation of the Inflation Reduction Act (IRA), coupled with supply chain constraints leading to project delays, contributed to the dip in the US market.
Despite this downturn, there were some encouraging developments, particularly within the European Union. Germany saw rapid expansion with the commissioning of previously auctioned capacity, and Spain experienced robust growth owing to its large corporate PPA (Power Purchase Agreement) market.
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Anticipated Onshore Wind Resurgence in 2023
As we look towards 2023, the global onshore wind capacity additions are expected to surge by 70%, breaking the 2020 record. The revival is primarily driven by the commissioning of projects in China that were delayed in 2022 due to Covid-related restrictions.
The United States and Europe are also expected to contribute significantly to this growth. Supply chain issues that previously slowed construction are being resolved, pushing project commissioning from 2022 into 2023.
The Wind of Change
Overall, the onshore wind sector is set to stage an impressive comeback in 2023. The adversity faced during the pandemic has not only tested the resilience of the sector but has also prompted innovative solutions to supply chain issues and incentivized policy support.
In 2023, the wind is expected to change in favor of onshore wind energy, symbolizing not just the physical generation of power, but a shift in our global energy landscape. The journey has been rough, but the forecast for onshore wind capacity additions in 2023 is bright, bringing with it renewed hope for a sustainable and resilient energy future.