Explosive growth in the offshore wind sector and aggressive renewables targets in India are expected to drive a ten-year compound annual growth rate (CAGR) of 12.2% in the Asia Pacific region, excluding China, according to a new report by Wood Mackenzie Power & Renewables.
“Target compliance in India is likely to bifurcate the next decade’s outlook, with near-term challenges posing issues for the 2020 target,” said Luke Lewandowski , Wood Mackenzie Power & Renewables Research Director.
“China’s market recovery will continue, as additional provinces in the north work to lift red warnings, supporting 250GW of capacity through to 2028. The annual share of offshore wind in China will average 18% of annual capacity from 2022 to 2028, as a result of onshore grid constraints and saturation.”
According to the Global Wind Power Market Outlook Update: Q1 2019 report, in Europe the transition to auctions will support a new level of annual capacity additions, with an expected average of 20GW annually.
The proliferation of commercial and industrial demand across Europe offers an increasingly important buyer segment for wind energy, WoodMac said.
“Offshore remains central to Europe’s outlook, comprising more than 25% of new capacity over the outlook (CAGR of 14%) and penetrating new markets in Southern and Eastern Europe,” said Lewandowski.
50.2GW of new onshore and offshore wind power was added globally in 2018, a 4% increase year-on-year and the third highest annual record, said to be largely driven by a resurgence in China, the report writes.
WoodMac expects 723GW of new global wind power capacity from 2019 until 2028.