APAC’s wind energy potential hampered by supply chain bottlenecks

It is expected to add 61% of global wind capacity by 2030.

The current supply chain setup in the Asia Pacific (APAC) is not enough to tap the full potential of its wind energy capacity to meet its net zero goals, according to a new report from the Global Wind Energy Council (GWEC) written in partnership with ERM.

In the “Mission Critical: Building the Asia Pacific Wind Energy Supply Chain for a 1.5°C World,” they also warned that APAC’s wind energy development is lagging, which could hinder global climate goals.

“The APAC region is the world’s largest wind market, but the supply chain concentration risk is high. Excluding China, the region is unlikely to meet the level of wind power installation required to meet climate targets,” said GWEC CEO Benjamin Backwell.

The region is expected to make up 61% of the new capacity built worldwide between 2024 and 2030. Total onshore wind capacity in APAC could double to 1,084 gigawatts (GW) within the decade, with another 122 GW of potential capacity from offshore wind by 2030.

To close the gap, Backwell said political commitment and cooperation which scales up the local supply chain are critical  to unlock the growth potential in the APAC.

ERM Partner Breanne Gellatly said “there is a strong appetite from this region for companies to grow in the wind sector - either through scaling up or transitioning adjacent operations to wind.”

“To achieve this growth, suppliers will need to make significant investments that require credible markets, committed pipelines and access to a regional marketplace. In parallel, APAC countries will need to play a complementary role to ensure frameworks are in place that support scale and cost efficiencies,” Gellatly said.