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Wind: Things to Watch in 2023
These ten trends to watch are a snapshot of what the BloombergNEF wind team thinks will be some of the most noteworthy developments in 2023.
1. Global cumulative wind installations will exceed one terawatt. Having taken 33 years to
reach one terawatt, we expect the sector will deliver almost another before the decade’s end.
2. France, India and Colombia will be the surprise markets of the year. All three countries
will have a strong 2023, kicking off robust installations for rest of the decade.
3. Turbine prices will remain elevated despite falling input costs. We expect manufacturers
to focus on profitability, after several posted significant losses during 2022.
4. China will lead the world in turbine technology scale. Chinese manufacturers have
announced larger models already this year. Developers are set to start installing them soon.
5. European and US turbine order volumes will rebound, after cost pressure, permitting
delays and policy uncertainty in major European markets caused a slowdown last year.
6. Offshore wind financing activity will hit a new record, as 32.5 gigawatts (GW) of new
projects get the go-ahead. That includes 17.6GW outside China, up from 1.7GW last year.
7. More players from outside the energy industry will invest in offshore wind, after a
chemicals company and a furniture maker purchased equity in projects in the last two years.
8. A 12.5GW surge in European floating wind auctions and tenders will lock in future
growth. We estimate projects from these auctions will begin operations from 2029.
9. High power prices will tempt more developers away from government auctions. Project
owners will instead look to lucrative power purchase agreements and shorter-term hedges.
10. European countries will cut red tape to permit more projects. The European Union and
member states are taking measures to speed up complex and lengthy permitting procedures
The BloombergNEF report below reflects on what has happened in the Wind sector and provides some detailed analysis and predictions on what opportunities and challenges 2023 could bring.
View the BloombergNEF report on wind here.