Strong activity in China pushed global wind turbine order intake to 43 GW in quarter two of 2022, a new record, up 36 percent from year-ago levels.
According to a new analysis from Wood Mackenzie, the total global order intake in the quarter equates to an estimated $18.1 billion.
With ambitious decarbonization targets, China aims to support an estimated average build of more than 55 GW per year over the next 10 years. In the second quarter alone, China accounted for a record 35 GW of activity and is at 45 GW year-to-date.
Europe showed growth in order intake with 3.8 GW, doubling its first-quarter activity. Order intake activity in the U.S. remained slow, with less than 2 GW through the first half of the year.
The global order intake for offshore wind exceeded 6 GW in the second quarter of this year. This is only the third time offshore orders have exceeded that number. Developers in the Chinese market galvanized the largest ever first-half firm orderbook for the offshore wind sector, comprising 74 percent of global offshore order capacity. Offshore order intake in China has now increased consecutively for three quarters, following a nearly year-long lull.
“Goldwind, Mingyang, and Envision were all very active in the second quarter with projects in China, accounting for more than 26 MW of activity between them. Seven Chinese turbine OEMs – with Envision, Mingyang, and Goldwind in the first three positions – recorded enough firm order capacity to rank in the global top 10 for order intake through the first half of 2022. Rapid technology adoption and government support have catapulted China to this leading position,” said Luke Lewandowski, Wood Mackenzie Research Director.
Buoyed by China, global activity is on a record pace through the first two quarters of 2022, with 61 GW ordered. This is 13 percent higher than the first half of 2021 and is the highest half-year ever recorded.
“China is surging, and we are seeing strength in Europe too. The U.S. is where demand has been sluggish. This is due to tough market conditions, such as labor cost increases, inflation, and supply chain disruptions. As a result, securing new orders in the US has been difficult, which has had a negative impact on OEMs dependent on the market, primarily Western-based OEMs.”
“However, with the passage of the IRA bill in the U.S., Wood Mackenzie anticipates a boost in activity over the second half of the year. With these new incentives, wind power projects have become more economically viable and thus more competitive compared to conventional technologies. If procurement of wind turbines in China continues at its current pace and intake activity picks up in the U.S., the wind turbine market could be set for a record year,” Lewandowski added.