A new report released by the Global Wind Energy Council (GWEC) has warned that policymakers must have a “decisive impact” in tackling supply chain issues to unlock 680GW of new wind capacity globally by 2027.
The report called 2022 a “disappointing year” for wind energy, with the industry only expected to install 136GW per year reaching a compound growth rate of 15pc.
Forecasts are brighter however, as the wind industry is said to expect “record installations” in onshore and offshore markets by 2023, reaching an estimated 680GW by 2027.
This growth is largely caused by new and developing policies supporting investment within the sector such as the Inflation Reduction Act in the US and increased ambition throughout Europe.
The increasing pace of deployment will cause a supply chain bottleneck, warned the report and policymakers must act now to avoid stalling the deployment of wind energy from 2026.
The report concluded: “While moves to further incentivise investment in supply chains and create more regional diversification and resilience are to be welcomed, attempts to create rigid local content requirements or implement protectionist trade measures create the risks of sharply higher costs or even serious delays to the necessary expansion of wind and renewables.”
Despite increasing investment in renewables growing on an international level, recent political and regulatory uncertainty is threatening to leave the UK behind.
On 16 March, the UK Government confirmed a £205 million budget for the fifth Contracts for Difference (CfD) funding round, which included £170 million for established technologies which included offshore wind.
RenewableUK criticised the new budget claiming that it was “jeopardising” renewable investment within the UK.