Europe's Wind Sector Rebounds in 2023

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A record year for constructing new windfarms in Europe bodes well for the European Union (EU) getting close to its ambitious wind energy target for 2030.

Last year, the EU installed a record amount of 16.2 gigawatts (GW) of new wind energy capacity. Of this, 79% of new installations were onshore and 21% offshore, compared to 87% onshore in 2022. More than 1 GW came from the repowering of old turbines. Investments in offshore wind alone in 2023 accounted for more than 30 billion euro (US$32.5 billion), a major recovery for the sector, which saw investment in 2022 all but collapse to 400 million euro (US$434 million) due to the impact of the Russian invasion of Ukraine, impacts on the supply chain and the Europe-wide gas crisis.

Industry body WindEurope claimed the solid results for 2023 were down to improvements in permitting and a rebound in investments. "Things are looking up again for wind in Europe", said WindEurope Chief Executive Officer Giles Dickson. "Permitting has improved thanks to new EU rules. Investments are up. Record volumes are being auctioned and built. And Governments have committed with the Wind Power Package and Charter to strengthen Europe's wind energy industry. The industry in turn is recovering. Europe's wind supply chain is returning to profit and building the new factories needed to deliver the EU's targets. We're now confident that we can get close to the EU goal that wind is 35% of electricity by 2030, up from 19% today -- provided Europe accelerates the build-out of grids to connect all the new windfarms."

The EU's wind energy target for 2030 is 425 GW. Capacity currently stands at 220 GW, and in 2023 it met a record 19% of demand across the region, up 3% from 2022. In January, Industrial Info reported on a "huge day" for the European wind sector when 26 of the EU's 27 Member States, alongside 300 companies from the wind energy sector, committed to the European Wind Power Action Plan. For additional information, see January 17, 2024, article - 'Huge Day' for Europe's Wind Energy Industry. The Action Plan focuses on acceleration of deployment through increased predictability and faster permitting, improved auction design, access to finance, creating a fair and competitive international environment, skills and industry engagement and Member State commitments. Industrial Info is tracking almost 4,500 onshore and offshore wind projects in Europe with a potential investment value in excess of US$860 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

WindEurope believes the turnaround for the sector last year is reason to believe the EU will hit its 2030 wind energy targets. However, for that to happen the region will need to almost double its yearly rollout of installations. It forecasts 29 GW a year of new capacity on average over the 2024-30 time period.

2023 Highlights from WindEurope:

• Germany built the most new capacity last year, thanks to its rapid ongoing onshore wind expansion. After Germany, the Netherlands built the most, thanks to their record new offshore wind installations. Sweden was third with 1.9 GW of new capacity installed, all onshore.
• WindEurope expects the EU to install 200 GW of new wind power capacity over 2024-2030: 29 GW a year on average. To meet its 2030 climate and energy targets the EU now needs to build 33 GW a year on average.
• Denmark and Ireland had the highest share of wind in their electricity mix with 56% and 36%, respectively. Wind met at least 20% of electricity demand in another eight countries: Germany (31%), the U.K. (29%), the Netherlands (27%), Spain (27%), Sweden (26%), Portugal (26%), Lithuania (21%) and Greece (20%).
• Annual buildout of offshore wind should ramp up significantly toward the end of the decade. WindEurope anticipates installations over 2024-2030 to take the EU to 393 GW by 2030. The EU 2030 target is 425 GW. The organization also see Europe's installed wind power capacity exceeding 500-GW over the same timeframe.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).