Global wind turbine orders up 23% in H1

Demand was driven by China.

Global wind turbine order intake increased by 23% year-over-year (YoY) to reach 91.2 gigawatts (GW) in the first half (H1) of the year fueled by higher demand in the second quarter which exceeded 66 GW, according to a new analysis from Wood Mackenzie. 

In a statement, Wood Mackenzie said most of the orders came from China’s northern region. In addition to 70 GW of orders for its domestic market, Beijing also captured 5 GW of orders abroad.

Indian developers also saw improved performance in H1, yielding a 69% increase YoY. In total, Asia Pacific accounted for 85% of global intake in H1, the report said.

Wood Mackenzie also reported that Western original equipment manufacturers (OEM) struggled with lower demand and competition, contributing just 13% of global orders in H1. Orders outside China fell 16% in H1, it added.

Luke Lewandowski, vice president, global renewables research at Wood Mackenzie, said western OEMs are struggling to keep pace due to 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,” he added.

Per sector, global onshore order activity increased in H1, whilst offshore sector struggled, with order intake decreasing 38% 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.