GLOBAL WIND TURBINE ORDERS INCREASE TO A RECORD IN THE FIRST QUARTER, LED BY CHINA

Wood Mackenzie says orders hit an estimated $15.2 billion, up $3 billion from a year earlier

The Canudos Wind Energy Complex in Canudos, Brazil. AFP

Global wind turbine orders rose 27% in the first three months of 2023, setting a record for the first quarter.

China, the world's second-largest economy, accounted for nearly 65% ​​of the total 23.5 gigawatt orders, energy consulting firm Wood Mackenzie said in a report.

In Latin America, activity levels rose to 1.7 gigawatts, while in the US, orders more than doubled to 1.8 gigawatts, surpassing the total for the first half of 2022.

In total, global orders are estimated at $15.2 billion for the January-March period, up $3 billion from a year earlier, Wood Mackenzie said.

“China continues to be the dominant driver of global activity,” said Luke Lewandowski, research director at Wood Mackenzie.

“We don't see that slowing down any time soon. It is encouraging to see some regions outside of China starting to gain momentum.”

“Latin America had a record Q1, thanks to activity in Argentina and Brazil, and the US is seeing confidence and new order growth, thanks in part to the Inflation Reduction Act.”

The IRA, enacted last year, offers a range of tax incentives for wind, solar, hydro and other renewables, as well as promoting electric vehicle ownership.

The move is expected to spur an investment of about $3 trillion in renewable energy technology, according to Goldman Sachs, while also doubling the amount of energy generated by the US shale revolution by more than a year. decade ago.

Wood Mackenzie said while some regions outside of China recorded growth, overall activity from Western equipment makers remained sluggish, with first-quarter orders falling by nine % compared with the same period last year.

Solar panels and wind turbines operate in an integrated power plant in Yancheng city, Jiangsu province, China. AFP

China is "promoting" growth strategies to meet local governments' renewable requirements, while Western manufacturers are focusing on profits, the consultancy said.

“Western OEMs [original equipment manufacturers] remain very selective and disciplined in their operations, with the goal of improving their bottom line,” said Mr. Lewandowski.

“Prices have remained relatively stable in markets like the US, where strategies such as measured technology development and price indexing have been used by Western OEMs to accelerate profitability.”

The report said offshore wind orders fell 12% year-on-year, but Europe saw growth, contributing 3 gigawatts to offshore activity.

In total, offshore wind accounted for 13% of total orders in the first quarter.

Wood Mackenzie said Chinese green energy company Envision captured the largest share of new orders at 3.6 gigawatts.

Danish wind turbine maker Vestas came in second with orders worth 3.3 gigawatts.

Wood Mackenzie said in an April report that the global wind energy market will cross the one terawatt threshold for installed capacity by the end of 2023.

The International Energy Agency says investment in clean energy will reach $1.7 trillion this year, outstripping spending on fossil fuels, as countries seek to tackle energy shortages. potential.

Global energy investment by 2023 is projected to reach $2.8 trillion, with more than 60% allocated to clean technologies, including renewables, electric vehicles, nuclear power and machinery heat pumps, the Paris-based agency said in its World Energy Investment report last week.

The report says the remaining 40% will be spent on coal, natural gas and crude oil.