H1: Global Wind Turbine Orders Hit 91.2 GW, India Orders Rise 69% YoY

Globally, the wind turbine order intake reached a new high in H1, with the addition of 91.2 GW. This is a 23 percent increase year-over-year (YOY). According to a new analysis from Wood Mackenzie, this took the global investment by developers in H1 to US$ 42 billion, a 3% increase YOY. Whereas, the developers in India made great strides in H1, yielding a 69% increase YOY. In total, APAC accounted for 85% of global intake in H1.

The report credits the recent spike in wind turbine uptake to an increase in order intake in Q2, which exceeded 66 GW. This increase was largely part due to an increase in demand in China’s northern region. According to the report, in addition to 70 GW of orders for its domestic market, China also captured 5 GW of orders abroad.

In contrast to the strong performance of OEMs in the APAC region, Western OEMs struggled due to intensifying competition over more modest demand and contributed just 13% of global order intake in H1. In total, order intake outside of China decreased by 16% (-2.3 GW) in H1. Intake in the Americas and Europe dropped 42% YoY with less than 10 GW combined ordered in H1.

“Chinese OEMs continue to break records for order intake on activity both domestically and aboard,” said Luke Lewandowski, vice president, of global renewables research at Wood Mackenzie. “Conversely, western OEMs are struggling to keep pace, challenged by China’s competitive advantages in pricing and availability. Soft demand in

Western markets as well as policy uncertainty, inflation, and other cost pressures have also driven down activity in the US and Europe. China remains the undisputed leader in the industry.”

While global onshore order activity increased in H1, the offshore sector struggled, with order intake decreasing 38% YOY through H1 (-4.1 GW) as challenging project economics have hindered the market.

“The offshore market has almost 30 GW of conditional orders globally, 21 GW of which are for projects in Europe and the US, but challenging economics continue to delay conversion into firm orders,” said Lewandowski.” For H1, Envision was the leader for overall order intake, followed by Windey and Goldwind, all with more than 12 GW of activity. Be it England, Denmark or the US, wind developers have baulked at making commitments without clear, and more government support.