1、GLOBAL WIND ENERGY COUNCILGWEC|GLOBAL WIND REPORT 2024GWEC.NETAssociate SponsorsPodcast SponsorLeading SponsorSupporting SponsorCo-leading SponsorTable of contentsGlobal Wind Energy CouncilRue de Commerce 311000 Brussels,BLead Authors Joyce Lee,Feng ZhaoContributors and EditingBen Backwell,Mark Hutc

2、hinson,Navneet Khinda,Emerson Clarke,Liming Qiao,Rebecca Williams,Weng Han Tan,Wanliang Liang,Anjali Lathigara,Esther Fang,Marcela Ruas,Thang Vinh Bui,Ann Margret Francisco,Thoa Nguyen,Martand Shardul,Jeanette Gitobu,Reshmi Ladwa,Janice Cheong,Wangari Muchiri,Ramon Fiestas,Heba Rabie,Kshitij Madan,A

3、misha Patel,Nadia WeekesAdditional ContributionsAsociacin Mexicana de Energa Elica(AMDEE),SER Colombia Asociacin Energas Renovables,Associao Brasileira de Energia Elica e Novas Tecnologias(ABEElica),Binh Thuan Wind and Solar Energy Association-Vietnam,Camara Elica Argentina,Asociacin Peruana de Ener

4、gas Renovables(SPR),Asociacin Chilena de Energas Renovables y Almacenamiento(ACERA),European Chamber of Commerce Taiwan(Wind Energy Committee,Japan Wind Power Association(JWPA),Korea Wind Energy Industry Association(KWEIA),China Wind Energy Association(CWEA),Thailand Wind Energy Association(ThaiWEA)

5、,Mongolian Renewable Energy Association,Iran Renewable Energy Association(IRWEA),Electricity Sector Association of Kenya(ESAK),South African Wind Energy Association(SAWEA),Clean Energy Council-Australia,American Clean Power(ACP),Canadian Renewable Energy Association(CanREA),WindEurope.We received va

6、luable review and commentary for this report from:Roland Roesch,Francisco Boshell,Jaidev Dhavle,Adrian Gonzalez,Juan Pablo Jimenez Navarro(IRENA)Pavel Miller(SSE)Wadia Fruergaard,Rina Bohle Zeller(Vestas)George Aluru(ESAK)Front cover Image courtesy of MasdarPublished16 April 2024Designlemonboxwww.le

7、monbox.co.ukGLOBAL WIND ENERGY COUNCILGWEC|GLOBAL WIND REPORT 2024 1Foreword 2 Executive Summary 9Wind energy:Meeting the global goal to triple renewables by 2030 17Chapter 1:Investing in wind to meet the tripling renewables goal 24Chapter 2:Building the global wind supply chain to meet the tripling

8、 renewables goal 41Chapter 3:Generating the grid system to meet the tripling renewables goal 64Chapter 4:Fostering public support for wind energy to meet the tripling renewables goal 79Markets to Watch 103 Australia,Azerbaijan,Brazil,China,Egypt,India,Japan,Kenya,The Philippines,Saudi Arabia,South K

9、orea,the US,VietnamMarket Status 137Market Outlook 2024-2028 150Appendix 159GWEC.NET 2ForewordMeeting the challenge of our times requires ambition and courage:The ambition to be bold and think big in the pursuit of a clean energy future,and the courage to make the tough choices to fulfil that ambiti

10、on.When nearly 200 governments at COP28 in Dubai agreed the historic goal to triple renewable energy capacity,they demonstrated the ambition that will be needed to transition away from fossil fuels,limit the global temperature rise and avert the worst impacts of climate change.Now comes the hard par

11、t.The part where we must take the bold decisions necessary to make this goal a reality.Looking at this years Global Wind Report,we can see strong progress by the wind industry in commissioning huge volumes of renewable energy.2023 saw the highest number of new installations in history for onshore wi

12、nd(over 100 GW)and second highest for offshore wind(11 GW).We passed the symbolic milestone of 1 TW installed globally and,at the current rate,we expect to hit 2 TW before 2030.Nonetheless we must acknowledge,firstly,that this rate of growth still leaves us far short of the tripling target and,secon

13、dly,that our sector has been tested by the tough macroeconomic environment.Global inflationary pressures,rising cost of capital and fragility in the supply chain have affected our ability to ramp up in many regions.Given the urgency of the action needed,we do not have time to retreat and wait for th

14、ese problems to go away we need decisive action by our political and industrial leaders to address the big challenges before us.This means countries taking steps to derisk and accelerate deployment of renewables by prioritising early investment in the grid and transmission infrastructure and moving

15、swiftly to streamline permitting processes.It requires political leaders who are willing to spend political capital by sending clear signals to the market that the energy transition is inevitable,who pursue fiscal and practical measures designed to encourage supply chain growth,and who remove barrie

16、rs to free trade that whilst tempting in the short-term are only likely to delay and increase the cost of the energy transition.To incentivise new renewable energy projects,we need regulatory frameworks that measure the true value of the electrons we deliver,at a fair price,according to the full spe

17、ctrum of services they provide:In addition to powering homes and businesses,the wind farms that GWEC members are building today will decarbonise the economy,reduce dependence on volatile fossil fuels,enhance security of supply,improve energy price stability,generate jobs and career opportunities,sti

18、mulate economic development and reinvigorate neglected communities.Around the world,we are beginning to see the positive impacts of major policy interventions designed to incentivise new projects.Landmark legislative accomplishments such as the US Inflation Reduction Act,the EUs Wind Power Package a

19、nd Chinas Five-Year Plan serve as recent exemplars of political statements being met with concrete actions.When you consider everything we have already achieved,having the courage of our convictions feels much less like a leap of faith.Wind energy has never been more in demand and,with a little reso

20、lve and determination,I am certain this industry will emerge stronger,more resilient and more confident in its future than it has ever been before.Word from the ChairmanJonathan ColeCEO of Corio Generation and Chair of Global Wind Energy CouncilGWEC|GLOBAL WIND REPORT 2024 3The wind industry is in a

21、 pivotal moment.The historic COP28 adoption of a target to triple renewable energy by 2030 to accelerate the energy transition onto a Paris Agreement trajectory showed the extent to which the world is relying on wind energy to reach its climate goals.Among policymakers and international institutions

22、,there is a strong understanding that the world must accelerate installations of readily available technologies namely wind and solar PV if the world is going to move to a cleaner,modern and more flexible energy system in the timeframe required.This places both a unique opportunity and a unique chal

23、lenge in front of our industry.Essentially,as outlined in this years Global Wind Report,we need to accelerate wind energy installations from a level of 117 GW in 2023 to at least 320 GW of annual installations by 2030.This tripling of annual wind installations would bring us to around 3 TW of cumula

24、tive wind energy capacity by the end of the decade.It took us over 40 years to reach the 1 TW mark of worldwide installed wind power.We now have just 7 years to install the next 2 TW.While this is possible,it will require an unprecedented level of focus,determination,collaboration and ingenuity to r

25、each the goal.Industry growth is speeding up,and once again the industry broke a new annual record in 2023.But so far,growth has been overly concentrated in the key markets of China,the EU,the US,India and Brazil.An unprecedented number of countries have now established ambitious national targets pa

26、rticularly those with strong offshore resources including major industrial economies and large emerging markets such as Japan,South Korea,Australia,Vietnam,the Philippines and Kenya.Supporting these countries to push through regulatory complexity and scale up investment will play a big part in accel

27、erating wind installations beyond 300 GW per year.However,there are still many parts of the world where growth has been sluggish or non-existent,particularly in the Global South.Policymakers and investors will need to work hard to come up with better solutions for the millions of people in areas lik

28、e sub-Saharan Africa to ensure that they too can play a role in the energy transition,and gain access to clean electricity and sustainable economic growth opportunities.At present,market frameworks are still rewarding investment in fossil fuels,while companies in renewable energy and other key trans

29、ition areas see thin returns and sluggish equity valuations.Concerted effort will be needed to ensure enough finance flows to renewables,to remove planning barriers,and to ensure that the supply chain can grow to the level needed to keep the transition moving.But there is a strong case for optimism.

30、Climate diplomacy is arguably the single most collaborative,action orientated,rules-based,multilateral discussion in the world right now.After 28 COP meetings,we are seeing the world sitting down seriously to discuss increasing climate action,preparing for fossil fuel phase out,and pledging to achie

31、ve 3X renewables and net zero.The push for 3X is slowly but surely filtering into targets,policy and regulation as governments look to the means Building a confident wind industry in a 3X renewables worldForewordBen BackwellCEO,Global Wind Energy CouncilGWEC.NETon hand essentially wind and solar PV

32、to meet their climate commitments.The Global Renewables Alliance initiated by GWEC and the peer global renewable technology associations to create a combined voice has found massive public and political support for its message of“Double Down,Triple Up,Time 4 Action.”Meanwhile,the three main emitting

33、 blocs,China,the US and Europe,are all taking unprecedented action to speed up emissions reduction and build green industries,with massive programs of policy,regulatory and financial support.This is already having a big effect,with record installations in China,an approaching installation rush for o

34、nshore and offshore in the US and positive effect of new regulatory urgency in the key European market of Germany.GWEC is working hard with governments,stakeholders and companies to continue working through the bottlenecks in countries around the world many highlighted in the Global Wind Reports Mar

35、kets to Watch through initiatives such as the Global Offshore Wind Alliance,the Ocean Energy Pathway technical assistance programme,Women in Wind,our work on supply chains and other activities.The shift towards greater urgency and action is hugely positive.But at the same time,we face increased econ

36、omic and social volatility,the predominance of geopolitics and a return to widespread military action.These days,as the UN Secretary General has lamented,countries seem to turn to force before thinking of the wider consequences.Governments will need to find the right balance between national industr

37、ial policy on the one hand,and maintaining open global trade,competition and innovation on the other.We need to try very hard to make sure that healthy competition for leadership in the energy transition does not turn into rivalry,protectionism,trade wars,deepened inequity for the Global South and a

38、 race to secure materials at the expense of others.International collaboration,dialogue and managed competition:these will continue to be the bedrock of economic growth and the energy transition in the coming period.The alternative is a fragmented world and military conflict,and an inward-looking,mo

39、re hostile political climate where extremist ideas and false narratives can run wild.In my view,this“dark domino”scenario would have dire impacts for the transition and renewable energy sector.The wind industry cant fix all these problems,of course.But it can help fix the most important runaway clim

40、ate change while injecting positivity and hope into societys discussion and providing a pathway to a fairer and more prosperous planet.We can push for collaboration across geographies and cultures,inclusivity,building new and unprecedented mega engineering projects that are truly awesome these are s

41、ome of the things which we can contribute as we expand and mature as a sector.The challenges are many.But the important thing is put fear aside and take the concrete steps every day that are needed to overcome them.Working together,we are confident that the wind industry will contribute to the build

42、ing of the Confident Green World that we all wish to see.GWEC|GLOBAL WIND REPORT 2024 5ForewordGirish TantiVice Chairman,Suzlon GroupIn the last few years,the world has awakened to the disastrous impacts of climate change,leading to global consensus by governments,industries and stakeholders across

43、the value chain on committing to ambitious climate targets.As we shifted our focus from discussions to decisions,the global goal to triple renewables by 2030 emerged as a sustainable course of action at COP28,promising a triple bottom line of environmental,economic and social benefits.In unprecedent

44、ed unison,more than 130 countries agreed to triple renewable energy capacity to at least 11,000 GW by 2030 to phase out fossil fuels and meet the 1.5C global warming threshold.We need a similar collective resolve for the implementation strategies for this goal.This is a mammoth task demanding integr

45、ated multi-stakeholder action with a larger synchronisation of priorities,effort and innovative financing.Amidst the passion for climate action,lets keep reminding ourselves that goal-setting is a long-term exercise.However,implementation requires well-aligned short-and medium-term decisions specifi

46、c to countries,industries and resources.The hour calls for policymakers and industries to work together to resolve bottlenecks and boost renewables adoption.This requires agility in local policy actions centred around project permitting,technology suitability,manufacturing preparedness,supply chain

47、development and grid infrastructure readiness to support decentralised green power development and manage unstable market mechanisms(see Chapter 2).Building a resilient supply chainSince every country has a different set of challenges,including economic environments and manufacturing ecosystems,gove

48、rnments must champion domestic-friendly policies and systems based on their own regulatory and geopolitical scenarios to scale and maintain secure supply chains for renewables.To realise the true potential of global supply chains,we must leverage regional excellence to uphold a unified purpose of“lo

49、cally made,globally sourced.”Arriving at that delicate balance of convergence and diversification to promote local interests,protect against geopolitical risks and enable the ramp-up of renewables should be a global priority.Leveraging the Global SouthThus far,the green energy revolution has largely

50、 been driven by the Global North.However,the awakening of the Global South presents a momentous proposition of bringing in Translating vision into realityTo realise the true potential of global supply chains,we must leverage regional excellence to uphold a unified purpose of locally made,globally so

51、urced.GWEC.NETenormous demand for clean energy to fuel rapidly growing economies.Countries in the Global South also have the potential to become the leading cost-efficient technology and supply chain partners.At present,countries face the challenges of balancing global versus local supply chains,as

52、well as the speed versus the price at which to develop renewables.Green financing for tripling renewablesDuring the last five years,investments in renewables have outpaced those in other power sectors,reaching nearly$700 billion,according to the IEA.However,global investments in renewables,grid and

53、storage infrastructure need to increase to around$2 trillion per year to realise the tripling renewables target(see Chapter 1).Today,renewables are one of the cheapest energy sources in the world.With consistent and equitable financing,governments have the opportunity to revitalise their economies w

54、ith manufacturing,power generation and green jobs,and also meet their energy security needs in the process.Renewable energy is a great equaliser for countries less equipped to contribute to climate action,helping build competitive economies through distributed resources and decentralised generation.

55、A catalyst for economic growth,renewables can help democratise energy through global trade and innovative climate action instruments,thereby uniting a fragmented world and offering an equitable,healthier future for all.Renewables can help democratise energy through global trade and innovative climat

56、e action instruments.GWEC|GLOBAL WIND REPORT 2024 7ForewordMohamed Jameel Al RamahiCEO,Masdar COP28 concluded with the historic UAE Consensus,driving forward a global commitment on climate action.With this clear mandate,the world must now collectively unite around action,accelerating the energy tran

57、sition by delivering clean energy solutions that support the tripling of global renewable capacity.Wind energy is a critical component in reaching these ambitions,and it is against that backdrop that GWECs Global Wind Report 2024 provides an important review of the progress that has been made in the

58、 global wind sector.With 117 GW added last year,installed wind power capacity worldwide has surpassed 1 TW,equivalent to the entire fleet of clean and conventional power of the US.Progress is being made and there is much to be proud of.In line with the reports findings,2023 was a record year for Mas

59、dars growth in the global wind sector as well.It included an 11 billion landmark agreement with RWE to co-develop the 3 GW Dogger Bank South Windfarm in the UK,one of the largest planned offshore wind projects in the world,as well as a 15 billion strategic partnership agreement with Iberdrola to eva

60、luate the joint development of offshore wind in the UK and other key markets like the US and Germany.Closer to home,Masdar inaugurated the UAE Wind Program,bringing utility-scale wind to the UAE for the first time and leveraging innovative,state-of-the-art,low wind speed technologies that will pave

61、the way for future projects in other low wind speed geographies.It is clear that wind is continuing to generate great momentum in every corner of the globe.Yet,as this years report outlines,the current trajectory in wind energy is not sufficient if we are to triple renewable energy capacity to 11,00

62、0 GW by 2030.The Global Wind Report 2024 highlights a similar trend in new renewable energy capacity in general,where a small number of nations are responsible for most new installations,predicating an unequal energy transition.Investment must accelerate,supply chains need to be strengthened,trade b

63、arriers must be reduced,regulatory obstacles like licensing,permitting and auction design for both seabed rights and revenues must be addressed,grid infrastructure needs to be expanded and overall collaboration should increase so that industry can scale up at pace.Financing,particularly of projects

64、in the Global South,must be a priority,supporting vulnerable communities,generating economic opportunities,and in turn,delivering social impact.This is another area that Masdar is playing a leading role in through The world must now unite around actionIt is clear that wind is continuing to generate

65、great momentum in every corner of the globe.GWEC.NET 8Strapour platform Infinity Power,the largest pure-play renewable energy company on the African continent with wind projects across South Africa,Egypt and Senegal.To get to where we need to go,the same resilience and determination that has resulte

66、d in wind power capacity passing the 1 TW milestone in 2023 is required.With global alignment under the UAE Consensus,we at Masdar are confident that nations and energy leaders around the world will put into practice the policies,regulation and investments needed to unlock the full potential of clea

67、n energy and help drive the energy transition forward.Financing,particularly of projects in the Global South,must be a priority,supporting vulnerable communities,generating economic opportunities,and in turn,delivering social impact.GWEC|GLOBAL WIND REPORT 2024 9StrapEXECUTIVE SUMMARYGWEC.NET 10Exec

68、utive SummaryWhen the gavel fell at COP28 at the end of 2023,a historic milestone was reached:Nearly 200 governments agreed on the need to triple renewable energy capacity globally and double energy efficiency improvements by 2030,to get on-track for a pathway that limits global warming to 1.5C.Wind

69、 energy was also recognised in the final decision text as a key climate change mitigation technology,which has become increasingly cost-effective and available.The last year gives cause for hope that wind energy can significantly contribute to this landmark goal.There is rising political ambition on

70、 the global energy transition,as well as recognition at the highest diplomatic and institutional levels of the urgency to close the“say/do gap”when it comes to implementing renewable energy targets.In 2023,a record-high 117 GW of new wind power was installed worldwide,representing a 50%hike from the

71、 previous year,which reflects the resilience of the industry even as it faced prolonged supply chain and macroeconomic difficulties.The shift of clean energy into the heart of national industrial policy for major economies,combined with gathering momentum in offshore wind and promising ambition amon

72、g emerging markets and developing economies(EMDEs),has prompted a more optimistic growth outlook from GWEC for total new wind additions through 2030 increased by 107 GW,compared to last years outlook.Wind energy installations need to triple by 2030,but face competing pressures on growth in this cruc

73、ial period50100150200Target for 3xRE to maintain 1.5C pathway3003201 176.5250020012023/20302050350Political consensus on the energy transition with the 3xRE goalValue proposition of wind against fossil fuels continues to strengthenRapidly growing ambition for offshore wind,and rising RE demand from

74、industryStrong appetite,especially in private sector capital,to invest in windTechnology acceleration in storage and flexibility for system integration of RE Permitting issues slow down projects globally and increase their costsGrids were designed for a different era and need urgent investmentRising

75、 cost of capital and inadequate finance for projects in EMDEsSupply chains and workforce constraintswill grow more acuteSocial acceptance and land rights issueswill intensify as wind expands Lorem ipsumSource:GWEC Market Intelligence.The Story:Wind energy and the global goal to triple renewables by

76、2030Joyce LeeHead of Policy and Projects,Global Wind Energy CouncilGWEC|GLOBAL WIND REPORT 2024But the road to tripling global renewables in this decade is far steeper,to say the least,and lined with daunting challenges.Global wind growth needs to rapidly accelerate,with annual wind installations ro

77、ughly tripling to at least 320 GW over the course of the decade.This pace of installation raises questions across the areas of investment and financing,supply chain,infrastructure buildout,land and seabed availability,social acceptance and more.There are plenty of promising tailwinds,from strengthen

78、ing demand signals for renewable power to technology acceleration that paves the way for large-scale system integration.At the same time,the global wind industry faces downward growth pressure from policy and regulatory areas like permitting complexities and timelines to grid bottlenecks to land rig

79、hts issues around the world.Widening wealth gaps between the Global North and South have been exacerbated by rising inflation and cost of capital.Trade distortions and geopolitical fissures have resulted in a fractious public discourse on building resilient global clean energy industries,and dimmed

80、future forecasts for world trade growth.1Like other industries,wind energy is still on the road to recovery from the reverberating impacts of COVID-19 and the invasion of Ukraine.This year,there are 2 billion people expected to go to the polls in presidential or legislative/parliamentary elections i

81、n more than 60 countries,which could send further shockwaves some positive,and some less so across the renewables sector.Navigating these competing and multidimensional pressures on growth is an unwieldy task,but vital to keeping the narrowing 1.5C window alive.A difference of a few percentage point

82、s of wind energy growth could make a material difference to the global warming trajectory and that delta represents cleaner and more secure energy systems,as well as positive transformation for countless lives and communities.Facing these choppy waters ahead,it will take courage,conviction and radic

83、al collaboration for wind energy to achieve its anticipated role in the tripling renewables goal,or get as close to it as possible.How the wind industry acts and advocates on increasingly complex issues,from global trade of clean energy to interactions with communities hosting projects,will determin

84、e whether we ultimately deliver a just and equitable transition.Global Wind Report 2024 examines four areas investment,supply chains,system infrastructure and public consensus which will set the conditions for wind energy growth to take off through 2030 in pursuit of the tripling renewables goal.Whi

85、le not an exhaustive list,GWEC considers these domains as critical for meaningful engagement to mitigate the risks of an unstable and disorderly transition.This years report also delves into the potential pinch points that accompany the present-day technological era:a rapid innovation cycle in wind

86、technology which undermines business profitability and risks product quality;interest groups actively using technology and social media to foment disinformation on climate change and renewables;robotics,artificial 1.IMF,World Economic Outlook Update,January 2024:Moderating Inflation and Steady Growt

87、h Open Path to Soft Landing,2024.GWEC.NET 12intelligence(AI)and automation introducing further disruptions to labour and workforce planning;and a digitalisation gap between countries which impacts their capacity to allocate land,permit projects and operate smart,modern grids.Each section includes a

88、list of recommendations on improving the conditions for wind growth.The common thread among these recommendations is deeper and more robust forms of collaboration between the wind industry,policymakers,investors and communities,from enhanced cross-sector dialogue at the global level to embracing mor

89、e flexible expectations at the community level.Finally,the report builds on the need to ensure a significant and beneficial role for the Global South on the road to the tripling renewables goal.As such,we have expanded the Markets to Watch section,showcasing the growth opportunities for wind energy

90、from Egypt to the Philippines.Here are the top 12 takeaways from this years Global Wind Report on the role of wind energy in achieving the global goal to triple renewables by 2030:1.Meaningful action is needed to mobilise larger volumes of investment into wind energy:This will need an“all hands on d

91、eck”approach to shift market design into models that incentivise large-scale renewable growth and,especially in the case of EMDEs,to enhance public/private partnerships to mobilise investment.Without deliberate realignment of investment with the principles of equity and fairness,reflected in a balan

92、ced North-South distribution of capital,benefits,knowledge transfer and technology,the goal of tripling renewables will not materialise.2.Growth at scale comes with stable and ambitious policy environments that offer reasonable returns on investment:Recognition of the wider societal and socioeconomi

93、c net benefits of wind energy can help to drive uptake of the technology,foster more sustainable remuneration schemes and secure higher project realisation rates.3.Collaborate to build a secure global supply chain with healthy,managed competition:Governments can address domestic policy and regulator

94、y barriers to support confidence in future supply chain investments.Policymakers should also adopt a balanced approach between pursuing supply chain diversification and strategic onshoring,while maintaining the global interlinkages of the supply chain,so as not to interrupt/delay project deployment

95、or the wider energy transition.4.Trade policy should foster competitive industries,not push higher costs onto end-users:Rather than pursuing defensive mechanisms which could enhance trade barriers,governments should focus on incentivising strategic segments of the domestic industry,creating a more a

96、ttractive market environment by ensuring adequate pricing and returns,making competitive Executive SummaryGWEC|GLOBAL WIND REPORT 2024 13finance available and removing bureaucratic barriers.5.New production models are needed to industrialise and decelerate the turbine platform race on size:Cooperati

97、on amongst industry should shift into multilateral technical partnerships and taskforces which focus on innovation,standardisation and ESG assurance.The transfer of knowledge and technology from the North to the South is crucial for a just transition,and will require wide-ranging dialogue and agreem

98、ents on“rules of the road”and fair partnerships.6.Ensure the advantages of AI and machine learning outweigh the drawbacks:AI can be harnessed for supply chain efficiencies and siting optimisation,among other uses,but will impact workforce planning in the transition and carries attendant risks.Indust

99、ry and authorities should collaborate on understanding the opportunities and risks presented to the clean energy sector,including good practice and risk management frameworks on cybersecurity and data-sharing.7.Close the gap on grids:Grids must become a national and cross-cutting policy priority for

100、 countries to meet their energy security,climate and economic growth goals.This will require clearer targets for grid investment and system flexibility,anticipatory funding and investment in buildout,as well as public support for grid expansion.Cross-border grid integration also needs to be in the t

101、oolbox for implementing the tripling renewables goal and distributing its benefits.8.Scale modern and flexible power systems:Policymakers should prepare to utilise storage,demand-side response and other flexibility solutions.Otherwise,disjointed efforts to build out renewables while underinvesting i

102、n grid and flexibility infrastructure could lead to power system inefficiencies and wider gaps in clean energy access,ultimately undermining the transition.9.Action to accelerate permitting of wind projects:The expansion of wind energy will require early,extensive and effective engagement and a shar

103、ed understanding of what that will mean for communities,nature and users of land/sea spaces.Policymakers,industry and communities can collaborate on a number of actions,from proactive dialogues to establishing centralised permitting authorities.10.Community engagement is more critical than ever:Mean

104、ingful community engagement and respect for indigenous rights are of vital importance for the successful expansion of wind energy,while preserving cultural heritage and traditional ways of life.Participatory and inclusive engagement with impacted communities over wind farm lifetimes at project level

105、 is important to safeguard growth at sector level.11.Guard against misinformation and disinformation that sow doubt in wind and renewable energy:Misinformation can reduce trust in the wind industry,at a time when the world needs an accelerated roll-out of renewables.Effective strategies are required

106、 that push back against cynicism and turn the tide in favour of a renewable energy-powered world.12.The global wind industry must fulfil its role in delivering a just and equitable transition:Scaling wind energy requires socioeconomic cohesion around the transition agenda.The industry can contribute

107、 by fostering a diverse,equitable and inclusive workforce,collaborating with governments on facilitating pathways for workers from carbon-intensive industries,and working with stakeholders on strong governance and decent work across the wind value chain,including in upstream mining and production.Ex

108、ecutive SummaryGWEC.NET 14The wind industry experienced its most successful year on record in 2023,with installations increasing by 50%year on year(YoY).Despite the world being fully open following the global health crisis sparked by COVID-19,2023 remained an unusual year due to the challenging macr

109、oeconomic environment,rising and ongoing hostilities,the Red Sea crisis and prolonged supply chain disruptions stemming back to the time of Russias invasion of Ukraine.Connecting 117 GW of wind power capacity to the electricity grid in a single year not only demonstrates the remarkable resilience an

110、d adaptability of the wind industry but also shows that the world is moving in the right direction in combating climate change.Market status Thanks to the 117 GW of new wind power installations,global cumulative wind power capacity passed the first 1 TW milestone in 2023,showing YoY growth of 13%.In

111、 the onshore wind market,106 GW was fed into the grid last year,representing YoY growth of 54%.This milestone marks the first time that over than 100 GW of new onshore wind capacity was installed worldwide within a single year.At the country level,China and the US remained the worlds two largest mar

112、kets for onshore wind additions,followed by Brazil,Germany and India.Together,the top five markets made up 82%of global new installations in 2023,collectively 9%higher than the previous year.After two years of relatively low growth,onshore wind installations in China bounced back in 2023 with more t

113、han 69 GW commissioned,a new record.In the US,despite a last-quarter rush,with developers installing more new wind capacity in Q4 2023 than in the previous three quarters combined,only 6.4 GW of onshore wind capacity was added for the entire year,the lowest level since 2014.At the regional level,Asi

114、a Pacific and Latin America had record years with more than 75 GW and 6 GW of onshore wind capacity added,respectively,mainly thanks to dramatic growth in China and Brazil.New additions in Europe and Africa&Middle East did not surpass last years record.However,both two regions still experienced thei

115、r second-best years in terms of new onshore wind installations.Total onshore wind additions in North America dropped to 8.1 GW last year,16%lower than 2022.The decline was driven primarily by the slowdown of onshore wind growth in the worlds second-largest wind power market the US.In the offshore ma

116、rket,10.8 GW of new offshore wind was commissioned in 2023,bringing total global offshore wind capacity to 75.2 GW.Offshore wind additions were 24%higher than in 2022,making 2023 the second-highest year for new offshore wind capacity.China led the world in annual offshore wind development for the si

117、xth year in a row with 6.3 GW commissioned in 2023,making up The Data:2023 was the wind industrys best yearFeng ZhaoHead of Strategy and Market Intelligence,GWECExecutive SummaryGWEC|GLOBAL WIND REPORT 202458%of global additions and bringing its total offshore wind installations to 38 GW,3.7 GW(11%)

118、higher than Europe.Elsewhere in the APAC region,three markets commissioned new offshore wind capacity last year:Taiwan(China)(692 MW),Japan(62 MW)and South Korea(4 MW).Thanks to strong growth in the Netherlands,Europe had a record year in 2023,with 3.8 GW of new offshore wind capacity commissioned a

119、cross six markets.This brought Europes total offshore wind capacity to 34 GW by the end of 2023,43%of which was in the UK and 24%in Germany.The US had two utility-scale commercial offshore wind projects Vineyard Wind 1 and South Fork Wind under construction last year,but no offshore capacity was ful

120、ly commissioned in 2023.Nevertheless,the US remains the only market with offshore wind in operation outside of Europe and APAC.In total offshore wind installations,China took over the crown from the UK in 2021 and further consolidated its global market share in the past two years.Germany,the Netherl

121、ands and Denmark are the other three markets that make up the top five,as in 2022.Although Europe relinquished its title as the worlds largest offshore wind market in 2022,it remains the global leader in floating wind.The region commissioned 37 MW of floating wind capacity last year,making up 79%of

122、floating wind additions in 2023 and bringing the regions total floating wind capacity to 208 MW,equal to 88%of global installations.Market Outlook The inclusion of a global goal of tripling renewable energy by 2030 in the final COP28 text is unprecedented and historic for wind and other renewable en

123、ergy technologies.As a result,the wind industry is becoming more optimistic about its short-term and long-term growth,and more confident about its role in achieving the tripling target.With a favourable political environment across the globe,GWEC Market Intelligence believes that 791 GW of new capac

124、ity is likely to be added in the next five years under current policies.This equals 158 GW of new installations each year until 2028.Five pillars will underpin this level of success in the next five years:l Europe is accelerating development of renewables to achieve energy security in the aftermath

125、of Russias invasion of Ukraine.The continent has started turning its ambitious targets into actions from 2023.l The US has implemented what has been called the largest investment in climate action the world has ever seen the Inflation Reduction Act(IRA),helping to,not only,deliver new clean power ov

126、er 2023-2032,but also to create a local supply chain,jobs and society-wide benefits.l Clean energy has become the top driver of Chinas economic growth.Driven by the 30-60 pledge,the Chinese government has set the target that non-fossil energy sources will account for over 80%of total energy consumpt

127、ion by 2060.l After a turbulent 2023,governments and developers have reaffirmed their commitments to develop offshore wind.Floating wind technology,as well as Power-to-X solutions,will further unlock offshore GWEC.NET 16winds potential in supporting the global energy transition.l Growth in emerging

128、markets from Southeast and Central Asia to MENA countries is expected to gain momentum from the middle of this decade.The compound annual growth rate(CAGR)for onshore wind in the next five years is 6.6%.We expect average annual installations of 130 GW.In total,653 GW is likely to be added in 2024-20

129、28.Growth in China,Europe and the US will remain the backbone of global onshore wind development in the next five years.Altogether,they are expected to make up more than 80%of the total capacity to be built in 2024-2028.The CAGR for offshore wind in the next five years is 28%.In total,138 GW of offs

130、hore wind capacity is expected to be added worldwide in 2024-2028.Annual offshore wind additions are likely to triple by 2028 from 2023 levels,bringing its share of new global installations from todays 9%to 20%by 2028.China and Europe will continue dominating the growth in 2024-2025.However,the US a

131、nd emerging markets in APAC will start gaining sizable market share from 2026.By the end of the forecast period,annual installations outside China and Europe are likely to make up more than 20%of total additions.GWEC Market Intelligence believes that the growth momentum will be retained beyond 2028.

132、Compared with the 2030 global outlook released alongside last years Global Wind Report,GWEC Market Intelligence has increased its forecast for total wind power capacity additions for 2024-2030 by 107 GW(YoY growth of 10%),primarily driven by the upgraded outlook in China and Europe.GWEC forecasts th

133、at the milestone of a second TW is likely to be passed by the end of 2029,one year ahead of our previous years projection provided the anticipated growth materialises in the five key wind markets mentioned above.However,even this growth is not rapid enough to enable the world to achieve its Paris Ag

134、reement targets,and will leave a sizeable gap in the wind energy capacity required by 2030 to stay on track for the IEAs Net Zero by 2050 pathway.The areas of permitting,supply chain,finance and grids will remain key for forecast growth to materialise,and to ramp up growth beyond this for net zero.W

135、IND ENERGY:MEETING THE GLOBAL GOAL TO TRIPLE RENEWABLES BY 2030GWEC.NET 18Where we are and where we need to go 2023 was a record year for renewables,with new installations of 510 GW an increase of nearly 50%compared to the previous year.1 It was also a historic year for wind installations,as the wor

136、ld added 106 GW of onshore wind and 10.8 GW of offshore wind.This brought the industry to record-high growth,even while facing notable challenges and headwinds around permitting timelines,grid availability and a volatile macroeconomic environment.2 However,even the pace set in this record year for r

137、enewables will not be enough to get the world on-track for a pathway that limits global warming to 1.5C,nor to reach the global goal to triple renewable energy capacity to 11,000 GW by 2030,as agreed by nearly 200 countries at COP28(see“How did countries commit to“Double Down,Triple Up”at COP28?”bel

138、ow).By 2030,GWEC forecasts we are set to reach 2 TW of installed capacity under current policies.This will fall notably short of the volume of cumulative wind energy installations required globally to meet the goal of tripling renewable capacity.International energy agencies and net zero roadmaps ag

139、ree on the primary role of wind energy to meet this goal,though the figures vary slightly.IRENAs World Energy Transitions Outlook foresees 3,040 GW of cumulative onshore wind by 2030 and 494 GW of offshore wind by 2030,or about 3.5 TW of total wind installed by 2030.3 The IEAs Net Zero by 2050 Scena

140、rio(2023)calls for 320 GW of wind installations in 2030,and a total of 2.75 TW of global wind capacity by that time.4 While the growth projections for wind differ,the conclusion is the same:Global wind growth must rapidly accelerate to meet 2030 targets.This will require annual wind installations to

141、 more than triple from current levels of 117 GW to at least 320 GW over the course of the decade.So how do we get there?This report examines four areas investment,supply chains,system infrastructure and public consensus which will set the conditions for meeting the goal of tripling renewable energy

142、capacity by 2030.While not an exhaustive list,GWEC considers these domains as critical for meaningful engagement and reform.The global wind industry and policymakers must urgently collaborate(and in the case of public consensus,also establish better ways of working with communities)to resolve the bo

143、ttlenecks to make progress in each of these areas.Only then will we be able to scale wind deployment at the necessary pace,creating a sustainable long-term pipeline of best-in-class projects that can meet global climate goals.This will also be a“win-win”for countries and communities by lowering ener

144、gy prices,stimulating investment,economic growth and job creation,and supporting energy security.Introduction1.IEA,Renewables 2023.2.See GWECs Global Wind Report 2023 and Global Offshore Wind Report 2023 for further detail on these challenges.3.IRENA,World Energy Transitions Outlook 2023:1.5C Pathwa

145、y,2023.4.IEA,Net Zero Roadmap:A Global Pathway to Keep the 1.5 C Goal in Reach,2023.IntroductionGWEC|GLOBAL WIND REPORT 2024 19The final outcome of the Global Stocktake(GST)process at COP28,which served as the cover text for the conference,called on Parties to COP to contribute to tripling renewable

146、 energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030.This call,contained in Paragraph 28,recognised the role that tripling renewable energy plays in achieving the“deep,rapid and sustained reductions in greenhouse gas(GHG)emissions in line wi

147、th 1.5C pathways.”While the text itself is non-binding,it is still politically significant as Article 14 of the legally binding Paris Agreement outlines how the GST outcome should inform Parties in updating and enhancing their action on climate,including in international cooperation for climate acti

148、on.Article 4 of the Paris Agreement specifies that this should include updates to countries nationally determined contributions(NDCs)which are submitted every five years to communicate domestic climate actions,often including specific renewable energy targets and timelines.By the time COP28 came to

149、a close,132 countries also signed up to the voluntary sideline Global Renewables and Energy Efficiency Pledge.This pledge recognised that global renewable energy capacity must triple to at least 11,000 GW by 2030,and energy efficiency improvements must double every year until 2030,to limit global wa

150、rming in accordance with the Paris Agreement.The 132 signatories committed to working together in this effort,accounting for“different starting points and national circumstances,”and to take comprehensive domestic action to contribute to achieving the tripling target.This included collaboration in k

151、ey areas like resilient value chains,expanding financial support and reducing cost of capital for renewable energy in developing countries,and accelerating cross-border grid connections.Signatories also recognised some key enabling actions drawn largely from the report,“Tripling renewable power and

152、doubling energy efficiency by 2030:Crucial steps towards 1.5C,”published by COP28,IRENA and the Global Renewables Alliance last year.These enablers include:l Accelerate permitting of renewable projects and related infrastructure;l Develop and expand grid How did countries commit to“Double Down,Tripl

153、e Up”at COP28?Introduction132 countries signed up to the sideline Global Renewables and Energy Efficiency Pledge at COP28connections,and improve energy system integration;l Provide clarity on market design and incentive schemes and strengthen market conditions and investment frameworks to facilitate

154、 investments in renewables and energy efficiency;l Promote energy efficiency,electrification and energy demand management in all relevant sectors;l Raise public awareness and encourage behavioural change;l Encourage increased and meaningful,multiple-source private and public investments,particularly

155、 for developing countries;l Enhance and scale new technological solutions,including through support in research,development and innovation.Finally,signatories committed to reviewing progress towards this pledge annually until 2030.The countries which have committed to tripling renewable energy in th

156、is pledge,as of December 2023,are:l Albanial Andorral Angolal Antigua and Barbudal Argentinal Armenial Australial Austrial Azerbaijanl Bahamas(the)l Bangladeshl Barbadosl Belgiuml Belizel Beninl Bhutanl Bosnia Herzegovinal Brazill Brunei Darussalaml Bulgarial Burkina Fasol Burundil Cabo Verdel Canad

157、al Chadl Chilel Colombial Comoros(the)l Costa Rical Cote dIvoirel Croatial Cubal Cyprusl Czechial Denmarkl Djiboutil Dominican Republic(the)l El Salvadorl Estonial Eswatinil Ethiopial Fijil European Unionl Finlandl Francel Gambia(the)l Georgial Germanyl Ghanal Greecel Grenadal Guatemalal Guineal Hun

158、garyl Icelandl Irelandl Italyl Jamaical Japanl Jordanl Kenyal Kiribatil Kosovol Kyrgyzstanl Latvial Lebanonl Lesothol Liechtensteinl Lithuanial Luxembourgl Malawil Malaysial Maldivesl Malil aMaltal Mexicol Micronesial Moldoval Monacol Montenegrol Moroccol Mozambiquel Namibial Naurul Netherlandsl New

159、 Zealandl Nicaragual Nigerial Niuel North Macedonial Norwayl Omanl Palaul Panaml Papua New Guineal Paraguayl Perul The Philippinesl Polandl Portugall Romanial Rwandal San Marinol Saint Vincent and the Grenadinesl Senegall Serbial Seychellesl Sierra Leonel Singaporel Slovakial Slovenial Somalial Repu

160、blic of Korea(ROK)l Spainl Swedenl Switzerlandl Syrial Tajikistanl Thailandl Togol Tunisial UAEl Ukrainel United Kingdoml United States of Americal Uruguayl Uzbekistanl Vanuatul Yemenl Zambial ZimbabweIntroductionGWEC.NET 20GWEC|GLOBAL WIND REPORT 2024 21Multidimensional challenges on the road to ne

161、t zero classrooms to climate forums at the highest international level,the transition to clean energy which is underway worldwide has been called“inevitable”or“unstoppable.”Certainly,we have come further than ever before,and the pace of change seems to be accelerating.It took nearly three decades fo

162、r the countries of the world to reach a historic agreement that coal and fossil fuel subsidies needed to be phased out to combat harmful climate change,as noted in the COP26 cover text.Just two years later,countries agreed that wind power,solar and storage were the key mitigation technologies to kee

163、p 1.5C within reach(see Chapter 1,“On the road to Baku and Belm:Looking ahead to COP29 and COP30”).Major tipping points for change and exponential growth in the adoption of clean technologies have been identified across the highest-emitting sectors,from road transport to heavy industry.5 This has be

164、en spurred by the widening availability of cost-effective,scalable wind and renewable energy,as well as increasing alignment among policymakers in pursuing electrification,sector-coupling and green industrialisation programmes to decarbonise their economies.But the road ahead is a turbulent one.The

165、global wind industry is still on the road to recovery from the reverberating impacts of COVID-19 related disruptions.There are 2 billion people expected to go to the polls in presidential or legislative/parliamentary elections in more than 60 countries around the world in 2024.6Not to mention the wi

166、dening wealth gaps between the Global North and South exacerbated by rising inflation and cost of capital,the prospect of heightened trade barriers and fragmented supply chains,and fractious public discourse on the transition.Trade distortions and geopolitical fissures have resulted in lower-than-av

167、erage world trade growth forecasts ahead,as well as a“resilient but slow”global growth picture,according to the IMF.7The present-day technological era also brings its own challenges:a rapid innovation cycle in wind technology which undermines business profitability and risks product quality;interest

168、 groups actively using technology and social media to foment disinformation on climate change and renewables,robotics,AI and automation introducing further disruptions to labour and workforce planning;and a digitalisation gap between countries which impacts their capacity to allocate land,permit pro

169、jects and operate smart,modern grids.5.https:/www.systemiq.earth/breakthrough-effect/6.Anchor Change,Election Cycle Calendar,2024;https:/www.weforum.org/agenda/2023/12/2024-elections-around-world/7.IMF,World Economic Outlook Update,January 2024:Moderating Inflation and Steady Growth Open Path to Sof

170、t Landing,2024.Wind energy installations need to triple by 2030,but face competing pressures on growth in this crucial period50100150200Target for 3xRE to maintain 1.5C pathway3003201 176.5250020012023/20302050350Political consensus on the energy transition with the 3xRE goalValue proposition of win

171、d against fossil fuels continues to strengthenRapidly growing ambition for offshore wind,and rising RE demand from industryStrong appetite,especially in private sector capital,to invest in windTechnology acceleration in storage and flexibility for system integration of RE Permitting issues slow down

172、 projects globally and increase their costsGrids were designed for a different era and need urgent investmentRising cost of capital and inadequate finance for projects in EMDEsSupply chains and workforce constraintswill grow more acuteSocial acceptance and land rights issueswill intensify as wind ex

173、pands Lorem ipsumSource:GWEC Market Intelligence.IntroductionGWEC.NETStrapGWEC|GLOBAL WIND REPORT 2024A 2024 survey of GWECs wind and renewable industry association members around the world canvassed perceptions of short-term and long-term challenges to wind growth across areas like permitting timel

174、ines and grid bottlenecks.The outcome shows that the global wind industry is generally more optimistic about long-term growth prospects,and perceives the shorter-term challenges within the next five years as more acute.Long-term optimism on growth is driven by factors like growing renewable energy a

175、mbition,increasing competitiveness of wind vis-vis fossil fuels,strengthening public consensus on the transition,continued technology advancement and wider recognition of the need to undertake market design reforms as the transition progresses.The exceptions,where challenges are perceived to intensi

176、fy over time,are in the supply chain,where bottlenecks in production capacity and skilled workforce availability are expected to emerge in the medium to long term.Compared with survey results in the Global Wind Report 2022,there are persistent challenges in competitiveness with gas,permitting timeli

177、nes,land use and land rights issues,as well as grid availability.Optimism in short-term challenges has grown in the areas of circularity and storage technology,green hydrogen opportunities and system flexibility solutions.This years Global Wind Report 2024 explores some of the growth pressures facin

178、g wind energy,focusing on the vital areas of market economics and investment,supply chains,grids/storage infrastructure and public consensus for the transition.As we embark on the march towards the tripling renewables goal,the global wind industry must collaborate with stakeholders across the energy

179、 transition to overcome these challenges and seize the growth opportunities ahead.GWEC|GLOBAL WIND REPORT 2024 23IntroductionCoal phaseoutProposition versus gasPolicy ambitionAdopting system valueJust transition and inclusionSkilled workforceWorkforceTechnologySupply ChainInfrastructureSystem Design

180、SocietyEnergy accessGrid and transmissionIntegration and flexibilityStorage and green hydrogenCircularityLong Term(10 years and beyond)Short Term(next 5 years)Supply chain costsLand usePublic consensusSocial acceptance0Permitting timelinesTransversal challenges to wind energys growth in the short an

181、d long termSystem DesignCoal phaseout:The pace of countries exiting and retiring coal-based generation.Proposition versus gas:The enabling policy environment for wind energy versus natural gas/LNG,based on market and socioeconomic value.Policy ambition:The visibility and predictability of countries

182、wind energy growth targets,and the reflection in transparent and long-term procurement schemes and enabling market design.Price stability:The shift away from a lowest cost approach to wind procurement via revenue stabilisation and other mechanisms,and looking towards a system value framework.Society

183、Permitting timelines:The ease of obtaining the necessary permits,licenses and approvals for wind project deployment,including legal challenges.Social acceptance:The scale of support versus opposition encountered by wind projects in host communities.Public consensus:Public education and awareness abo

184、ut climate change and the needs of the energy transition,including the impact of misinformation on social and political support for wind energy.Land use:Availability of land and seabed for wind energy projects.Supply ChainSupply chain security:The cost-effective and accessible supply of materials,mi

185、nerals,metals and other inputs to the wind energy supply chain,as well as the efficient organisation of production capacity on a global basis,amid potential trade barriers and geopolitical factors.Circularity:The reuse,repurposing,recyclability and recovery of wind farm components including wind tur

186、bines,and the reduction of waste and environmental impacts generated in the wind project lifecycle in line with a circular economy approach.TechnologyStorage and green hydrogen:The pace of cost reduction and commercialisation of enabling storage and green hydrogen technologies,which will boost deman

187、d for wind energy.Integration and flexibility:The pace of cost reduction and integration of enabling balancing and flexibility technologies,such as demand-side response tools,which will enable large-scale integration of wind energy.InfrastructureGrid and transmission:The pace and scale of grid reinf

188、orcement,buildout and modernisation,ensuring sufficient grid availability to increase wind deployment.Energy access:The expansion of infrastructure to enable universal clean energy access and electrification of power and other sectors.WorkforceSkilled workforce:The availability of a ready and able w

189、orkforce with the necessary training and skills for the wind industry.Just transition and inclusion:The socioeconomic welfare of stakeholders concerned with the energy transition,and the development of a diverse and inclusive workforce which can harness all talents to grow the wind industry.Short te

190、rm(within next 5 years)and long term(more than 10 years ahead)challenges which could slow down deployment of wind energy.Nodes closer to the outer circle are considered more severe challenges,while nodes closer to the centre are considered low or moderate challengesSource:GWEC Market Intelligence an

191、d a survey of GWECs national and regional wind and renewable energy industry association members,Q1 2024.This graphic is not inclusive of all challenges and factors impacting the growth of wind energy in different markets,and is meant to be used as a general guide to transversal issues.CHAPTER 1:INV

192、ESTING IN WIND TO MEET THE TRIPLING RENEWABLES GOALGWEC|GLOBAL WIND REPORT 2024 25Chapter 1:Economics and investmentThe wind industry continues to face challenges regarding revenue stability and supply chain profitability around the world.This has led to slower growth and delayed investment decision

193、s in the last three years as well as some notable contract renegotiations or cancellations for a few large-scale offshore wind projects in 2023.8a These challenges are symptomatic of policy and financing environments which are not fit-for-purpose if we are working towards a 1.5C pathway where wind i

194、s to generate one-fifth of the worlds electricity by 2030 and one-third of electricity by 2050.8 This chapter of the report discusses how to build the investment environment for accelerating wind energy deployment in this decade.Speedbumps,but not roadblocks,aheadThe world urgently needs more renewa

195、bles,but there are many speedbumps ahead.A few of these are discussed below:Major policy and regulation challengesPermitting issues globally slow down project development and increase project costs this is well understood and is being addressed in many countries,albeit still too slowly.Land/seabed r

196、ights for both onshore and offshore wind can be a big blocker on environmental,social and spatial planning grounds,whereas emerging markets and developing economies(EMDEs)may have fewer resources to ramp up the allocation of land for renewable energy and avoid conflicts with other interests while do

197、ing so.Repowering offers a shorter pathway to additional capacity.But it is clear that to achieve climate goals,the wind industry needs more volume,and quality volume,on offer and that requires land and seabed.Grids were designed for a different era that drew power from large,centralised power plant

198、s.These systems are no longer suitable in a world with more decentralised power generation,which will require additional investments for buildout,digitalisation and modernisation.The IEA notes that annual grid investment globally has been stagnant for several years and needs to double within this de

199、cade to more than$600 billion per year to meet net zero goals.9Constrained supply chainsRecent increases in commodity,labour and logistics costs have put pressure on the supply chain(discussed further in Chapter 2).At the same time,the global wind supply chain must expand to meet the triple renewabl

200、es pledge this will require significant additional investment,while many supply chain companies,OEMs in particular,remain financially challenged in a post-COVID 19 environment.It is certain that the stop/start nature of auction processes in many countries,the limited focus of these auction systems t

201、o support project realisation(for example,through the use of uncapped negative bidding in offshore wind)as well as insufficient volumes of capacity available to achieve economies of scale in the supply chain,disrupts planning for investment in local industries,production capacity and human capital.T

202、hese factors also increase the variability of demand,leading to volatility in pricing and lumpy growth pictures.Without clearer vision and collaboration on the Investing in wind to meet the tripling renewables goal8a.BloombergNEF,Offshore Wind Investment Hit All-Time High in 2023,2024.8.According to

203、 the IEAs Net Zero Emissions by 2050 Scenario(2023).9.IEA,Electricity Grids and Secure Energy Transitions,2023.GWEC.NET 26Chapter 1:Economics and investmentscale of the supply chain needed,many actors will understandably hold back investment in future capacity.The economics of wind powerCoal is almo

204、st impossible to finance now,and gas-and LNG-fired plants are facing increasing pressure on approvals and investment decisions.For instance,the Biden administration in the US recently announced a“temporary pause”on pending and future applications to export LNG from US plants,supposedly in response t

205、o climate activists and climate-oriented voter blocs.10 However,many EMDEs are growing fast and need more power generation to meet the needs of their economies which leaves them struggling with the choices from the worlds legacy energy system and its future one.Recent cost inflation and interest rat

206、e rises,while reversing or slowing somewhat in the second half of last year,have added further strain to the buildout of renewables and grids,though the cost-competitiveness of renewables versus fossil fuels is only strengthening.11While interest rates globally are stabilising,access to low-cost fin

207、ancing remains critical for large-scale clean energy projects that carry high up-front investments and zero fuel costs(as opposed to traditional generation assets like coal or gas,which have lower up-front costs but high operating/fuel costs).Since most project analysis is done on a discounted cash

208、flow basis,higher interest rates hit clean energy projects harder than fossil projects.As the transition progresses,it is likely that markets will see increased volatility of commodities such as oil,gas,lithium,nickel,iron and other resources.The phase-out of fossil fuels and the simultaneous ramp-u

209、p of renewable generation and demand for a number of transition materials,from copper to neodymium,will lead to a turbulent supply-demand situation which will be reflected in comparative costs of wind versus fossil fuels.Increased electricity prices could help fund much of the needed investments,but

210、 many EMDEs either cannot,or do not want to,implement cost-covering prices for electricity,even if it means the grid is more stable,demand is met,and economic growth can be accelerated.Some high-CAPEX renewable technologies,such as offshore wind,are ultimately cost-competitive with fossil fuel gener

211、ation but will require more expenditure in the early stages of market development.This is particularly due to significant up-front concession payments,fees and costs related to the use of seabed.Elevated cost of financing and commodity price volatility further underscore the importance of investment

212、 certainty.And in terms of market design,the prospect of price cannibalisation as penetration rates of renewable energy in a power market grow could jeopardise profitability for existing and future renewable projects.12 Access to capital in EMDEsGlobally,foreign direct investment(FDI)has fallen in t

213、he last two years due to confluent global crises,from the invasion of Ukraine to high energy prices to spiking national debt.13 Add to this the relatively higher up-front CAPEX required for renewables and storage infrastructure,and the investment case for renewable projects in developing countries i

214、s hit hard by risk ratings and the high cost of capital.From Mexico to Vietnam to India,the risk perceptions for wind projects in EMDEs centre around regulatory risk,land use,creditworthiness and financial viability of offtakers,transmission availability,currency stability,dispute resolution and oth

215、er factors.Stacked up,these risks contribute to higher cost of capital for renewable energy investments.During the period of lower-cost financing from 2019-2021,financing rates for onshore wind projects in industrialised countries hovered around 3-7%and often exceeded 10%in EMDEs making a huge diffe

216、rence in returns for CAPEX-intensive projects like onshore and offshore 10.https:/ power generation costs in 2022,2023.12.Cornwall Insight,Wholesale price“cannibalisation effect”puts economics of renewables at risk,2018.13.Global FDI fell 12%in 2022,with particular declines to least developed countr

217、ies.See:UNCTAD,World Investment Report 2023.GWEC|GLOBAL WIND REPORT 2024 27Chapter 1:Economics and investmentwind.14 By 2023,financing costs increased,with global weighted average cost of capital(WACC)for new wind projects coming in at 6.4%.15 In developing countries,WACC for solar and wind projects

218、 can be double or even triple the rates compared to mature renewable energy markets.16Environmental,Social,Governance(ESG)standards and sustainability principles are increasingly mainstreamed in capital markets.But there is a widening gap in investment flows to developing countries for Sustainable D

219、evelopment Goal(SDG)activity,from energy to water and sanitation projects,which has grown from$2.5 trillion in 2015 to$4 trillion by 2023.17As a result,sub-regions of the world have largely been excluded from the benefits of the energy transition to date:Only 2%of global investment in renewables in

220、the last two decades were made in Africa,despite its vast technical wind and solar resources,and even then,investment activity largely targeted a handful of countries.18 Least developed countries(LDCs)and small island developing states(SIDS)are among the groups which have seen the least investment a

221、ctivity in renewables.Given the enormous volumes of capital required for EMDEs,most growth will come from private sources,although the mobilisation and strategic targeting of public funding are also crucial.Excluding China,annual investment in clean energy for EMDEs needs to scale from roughly$270 b

222、illion today to more than$1.6 trillion over the next decade,according to the IEA,to meet a net zero scenario.Approximately half of that investment would benefit renewable energy generation,grids and storage.19 The way capital markets assess risk in EMDEs can be too risk-averse,but there is no clear

223、view into how to realign the risk perceptions of capital markets(which tend to be very conservative,particularly among lenders).Still,it is vital to urgently lower the cost of capital for renewable energy projects in EMDEs and accelerate the transition for countries that may otherwise be left behind

224、 and the savings are vast.The IEA calculates that narrowing the gap of cost of capital between EMDEs and advanced economies by just one percentage point would reduce annual investment needs in a net zero scenario by$150 billion globally.Blended finance and partnerships will be increasingly important

225、 UNCTAD has found that adding multilateral development banks(MDBs)to energy investments in developing countries will lower the spread on debt finance by 10%,while further combining this with government participation via public-private partnerships reduces the spread by 40%.20 In offshore wind,the Wo

226、rld Bank has found that applying concessional public debt to the electrical export system of a 1 GW project,and covering the offshore wind farm with a blend of 40%concessional Annual energy transition investment in EMDEs required for net zero to 2035Source:IEA,Reducing the Cost of Capital,2024.14.IR

227、ENA,The cost of financing for renewable power,2023;https:/ 2023.17.UNCTAD,World Investment Report 2023.18.IRENA,Renewable Energy Market Analysis:Africa and its Regions,2022.19.IEA,Reducing the Cost of Capital,2024.20.UNCTAD,World Investment Report 2023.Clean power1.81.20.6Trillion USD(2022,MER)Grids

228、 and storageEnergy efficiency and end useLow-emission fuels2023e6x-352031-35Middle East and EurasiaLatin AmericaIndia and other AsiaSE AsiaAfricaGWEC.NET 28Chapter 1:Economics and investmentfinance,10%grant finance and 50%private debt,would dramatically decrease the Levelised Cost of Elec

229、tricity(LCOE)of a project from around$108/MWh to$70/MWh.21 This is not a straightforward formula,as LCOE reflects multiple different factors of the project investment environment.But these findings indicate that offshore wind backed with blended finance in a developing country can compete with the c

230、ost of thermal generation on a long-term basis.There is acute pressure to ensure the energy transition fairly distributes dividends and opportunities for growth.But the pace of the transition in comparison to climate mitigation targets,along with the uncertainty ahead(for example,uncertainty about w

231、hen total oil demand will peak and decline),complicates planning for EMDEs in areas like infrastructure buildout and workforce development.A transition that fails to address a widening wealth gap or prepare for the coming displacement of labour risks disorderly and protracted renewable energy Impact

232、 of blended concessional finance on example offshore wind farm in EMDEDeveloper responsiblefor all financingWind turbinesFoundationsInter-array cablesOffshore substationOffshore export cableOnshore export cableOnshore substationOffshore wind farmFinancing ScenariosUS$2,450mprivateUS$480mprivateUS$2,

233、450mprivateUS$480mconcessional1089470US$1,378mprivateUS$8278mconcessional(blend)US$245mgrantUS$480mconcessionalElectrical export systemOffshore wind farmElectrical export system9%48%24%4%6%3%5%1%LCOE(US$/MWh)Typical CapEx breakdwonfor a 1GW offshore wind farmDevExConcessional financing ofelectrical

234、export systemBlended concessionalfinance and 10%grantSource:World Bank Group,World Bank and ESMAP,Reducing the Cost of Capital,2024.21.World Bank Group,The Role of Concessional Climate Finance in Accelerating the Deployment of Offshore Wind in Emerging Markets,2023GWEC|GLOBAL WIND REPORT 2024 29Chap

235、ter 1:Economics and investmentIn December 2023,following a year of diplomatic manoeuvring and global campaigning,nearly 200 countries adopted the final decision text of COP28.The worlds largest climate conference achieved a number of historic outcomes:a conclusion of the first GST process by the UNF

236、CCC which assessed collective progress towards the Paris Agreement;a decision to operationalise the Loss and Damage Fund,designating the World Bank as interim trustee and host of the fund for the first four-year period;and a first mention in the final decision text of“wind power and solar power and

237、storage”as mitigation technologies that have become increasingly available and cost-effective.For the year leading up to COP28,the Global Renewables Alliance(GRA,an umbrella association for the global industry associations for wind power,solar power,hydropower,geothermal,green hydrogen and long-dura

238、tion energy storage,co-founded by GWEC)ran an international campaign to“Double Down,Triple Up,”aiming to secure a global goal to triple renewable energy capacity and double energy efficiency improvement rates by 2030.This campaign included an open letter to policymakers signed by more than 300 indus

239、try,civil society and intergovernmental actors,representing a total of$12+trillion in market value,as well as the publication of a report on the enablers to reach the tripling renewables goal co-authored by the GRA,the COP28 Presidency and the International Renewable Energy Agency(IRENA).As a result

240、 of a huge diplomatic and multi-stakeholder effort,the final decision of COP28 recognised the need for“deep,rapid and sustained”reductions in GHG emissions,and called on countries around the world to contribute to the global effort to triple renewable energy capacity by 2030.This was a milestone ach

241、ievement for the renewable energy industry,enhancing the recognition of wind power as a key solution to mitigating climate change.For wind,the tripling renewables goal translates into roughly tripling the annual wind installations from 2023 levels to 2030.It should be noted that the final decision t

242、ext of COP28 is non-binding,and the“UAE Consensus”had notable shortfalls in finance and means of support for developing countries.The Alliance of Small Island States(AOSIS)rejected the package after the gavel came down,noting that it failed to deliver sufficient commitments to phase out fossil fuels

243、 as well as financing for developing countries for climate change adaptation and mitigation.Nonetheless,COP28 gave the renewables industry and the wider global community a powerful signal to rapidly accelerate renewable energy within this decade to keep a 1.5C pathway within reach.Looking ahead to C

244、OP29 in Baku and COP30 in Belm,the three COP Presidencies have already formed a Troika to work on a roadmap to“Mission 1.5C.”It is expected that enhancing cooperation across three Presidencies will maintain momentum and urgency on the climate agenda,and in particular focus on climate finance and mob

245、ilising more ambitious NDCs,or countries national commitments to climate action.The next round of NDCs is due in February 2025,with increased pressure on countries to submit their climate plans ahead of COP29 in November this year.In Baku,countries will convene to agree on a New Collective Quantifie

246、d Goal(NCQG)on climate finance flows to developing countries,superseding the existing pledge of$100 billion delivered from developed countries on an annual basis.The new quantum,and whether there may be sub-targets for types of funding or targets for funding,is yet to be determined.The IEA has noted

247、 that emerging markets and developing economies(EMDEs)excluding China only account for less than 15%of total clean energy investment;current investment in clean energy in these economies will need to grow sixfold to$1.6 trillion annually by the early 2030s to get on-track for 1.5C.This leaves a vast

248、 gap to be filled by the NCQG,as well as other commitments which can de-risk and lower capital costs for EMDEs.Beyond the“Finance COP”in Baku,COP30 in Belm is shaping up as an“Nature and Implementation COP”taking place during the year of updated NDCs and the UNFCCCs first synthesis report on Paris A

249、greement implementation.Given the setting in the Amazon,it will likely have a strong focus on nature protection,nature restoration and climate change adaptation issues,including encouragement of countries to submit and implement National Adaptation Plans.On the road to Baku and Belm:Looking ahead to

250、 COP29 and COP30GWEC.NET 30Chapter 1:Economics and investmentdevelopment,ultimately pushing the global goal of tripling renewable energy capacity farther away.There is no turning backThe speedbumps ahead to the tripling renewables goal ahead are formidable,but there is no turning back now.The volati

251、lity in fossil fuel markets seen in the last few years is a reminder to governments of the energy security and macroeconomic risks associated with continuing reliance on fossil fuels including the risks posed to attendant supply chains and industrial activity in a country.The demands for green power

252、 offtake in the public and private sectors including targets to decarbonise industrial activity and benchmarks for emissions intensity that grow stricter with time further weaken the investment case for long-term thermal generation.While coal currently provides more than one-third of the worlds elec

253、tricity,many(though not all)banks are pulling out of coal finance.The divestment policies adopted by banks and strengthened by the 2015 Paris Agreement have impacted more than half of lending activity into coal,and led to decommissioned and retired coal plants over the last decade.22Gas-and LNG-fire

254、d power plants,while framed in many discussions as a transition fuel,are facing scrutiny from lenders.Investors are increasingly concerned that 12-15 years after this generation comes online(roughly around 2040,assuming a 3-year construction period after financing is closed),these plants may not be

255、able to pay back their debt.Global investment figures across the renewables,fossil,grids/storage and nuclear power sectors over the last five years show that renewable energy has seen 20%growth since 2019.In contrast,investment in fossil fuels has been flat or even slightly declining.And yet,in the

256、public sector,global fossil fuel subsidies are projected to continue to rise from their nadir of$7 trillion in 2022,or about 7%of total global GDP.23 More than four-fifths of current fossil fuel subsidies are non-explicit,such as undercharging for environmental costs like local air pollution and for

257、egone consumption tax revenue.These subsidies are expected to increase 22.Boris Valle and Daniel Green,Can Finance Save the World?Measurement and Effects of Coal Divestment Policies by Banks,2022.23.Black,Liu,Parry and Vernon,IMF Fossil Fuel Subsidies Data:2023 Update,Working Paper,2023.Renewables o

258、utpace other investment in power sector technologies over the last 5 years2019Billion USD(2022)RenewablesFossilGrids and storageNuclear2020202022202320022202320022202300500600700Source:IEA,World Energy Investment 2023GWEC|GLOBAL WIND REPORT 2024

259、 31Chapter 1:Economics and investmentto meet the consumption needs of EMDEs,particularly in the Asia Pacific region where China provides the greatest volume of fossil fuel subsidies and the region as a whole accounts for half the global total.Substantive energy subsidy reform in the public sector ca

260、n help shift capital into areas where a formidable finance gap exists to meet the tripling renewables goal,such as modernising and expanding grid infrastructure,supporting governments to create legal,policy and regulatory regimes for the transition and building capacity in education and workforce tr

261、aining for the future energy system.Subsidy reform will need to be part of the toolbox for creating the conditions for massive investment into renewable energy,particularly in developing countries.Still,for an increasing number of private investors,the most viable options today are wind,solar energy

262、,storage(including batteries,pumped storage and other varieties),hydropower,as well as extensions to the lifetimes of nuclear and fossil plants.Green hydrogen and other new technologies may also be viable for the post-2030 period,though will not play a significant role in meeting the tripling renewa

263、bles goal.The wind industry in the mid-transition periodThe transition is underway,and there is no going back to an economy fuelled mainly by fossil energy.However,careful consideration must be given to how this transition proceeds,whether as an orderly process,a disorderly one or something in-betwe

264、en.An IMF working paper identifies our current period as one characterised by uncertainty,as markets wrestle with waning interest in traditional fossil investments(such as gas fields,power plants,regasification facilities,etc.)due to concern about future liabilities.Simultaneously this uncertainty i

265、s interacting with rising optimism regarding future demand for clean energy(including wind and solar projects,storage,electric vehicle charging stations,etc.).24 The instability of this period,which could be prolonged depending on our ability to navigate and manage the risks,will be characterised by

266、 decision-making under dynamic macro conditions.There may be excesses or shortfalls in supply of both renewable and fossil generation,cross-border price volatility exacerbated by climate damages,stranded fossil assets and unconnected clean energy assets,as well as uncertain demand signals.For instan

267、ce,the global wind industry is on a significant scale-up journey to ensureit can meet demand amid a volatile macro environment.Decarbonisation benchmarks for materials like steel and cement,along with the Market shares for clean and fossil energy in the mid-transition periodSource:Espagne,Oman,Mercu

268、re,Svartzman,Volz,Politt,Semieniu,Campiglio,IMF Working Paper,Cross-border risks of a global economy in mid-transition,2023.Standard assetsUnstable demandOversupply/undersupplyVolatile oil/gas marketsHigh-carboncapitalLow-carbon capitalMarket ShareUncertain/unstablemid-transition period20

269、040205024.Espagne,Oman,Mercure,Svartzman,Volz,Politt,Semieniu,Campiglio,IMF Working Paper,Cross-border risks of a global economy in mid-transition,2023.GWEC.NET 32Chapter 1:Economics and investmentcritical minerals like copper which will need to be mined in potentially fragile jurisdictions,exert fu

270、rther pressures on the wind supply chain.It is a reality that some fossil fuels will be used to deliver clean energy for some time,whether in the context of existing worldwide shipping and logistics networks or the production of epoxy resins that coat wind turbine blades.The risks of the mid-transit

271、ion period are particularly pronounced for EMDEs,which tend to experience faster economic growth than developed countries,and need larger volumes of new power generation capacity to meet this demand.This requires larger relative percentages of GDP than in developed countries.For example,a 5%increase

272、 in power demand in Vietnam requires a larger percentage of GDP than the same power demand increase in a developed country.In many developed countries with slower(as in the US25)or even negative(as in the UK26)electricity demand growth,renewable energy and storage installations typically displace po

273、wer generated from existing fossil plants,or help to meet relatively low demand growth from sources like data centres and electric vehicles.Developed countries are also better positioned to invest in grid planning and buildout,although this is not happening fast enough.Fossil fuel plant closures hav

274、e been delayed significantly in some cases,as evidenced by the recent spate of coal plant approvals in China.These delays are largely attributed to EMDEs struggling to scale up clean energy quickly enough to meet electricity demand for their economic growth trajectories.In industrialised countries,s

275、hutdowns of fossil generation have created employment dislocation and community impacts.It is crucial that shutdowns are well managed to maintain a public consensus on the speed and scale of the transition and to mitigate oppositional forces.The physical/economic disruption and dislocation caused by

276、 the expansion of wind energy could become fodder for politicisation.However,on the flipside,political change could foster greater support for the energy transition.In 2024,nearly half of the worlds population will head to the polls to vote in presidential or legislative/parliamentary elections in m

277、ore than 60 countries around the world,including the European Union.Of these countries with elections this year,11 are among the top 20 emitters globally,making this a banner year for the prospects of international climate action.These countries include:Germany,India,Indonesia,Iran,Italy,Mexico,Pola

278、nd,Russia,South Africa,South Korea and the US.The results of many of these elections will sway energy transition policy and reset renewable energy ambition while we are unlikely to see overt U-turns,oppositional swings in office could slow down or speed up progress towards the tripling renewables go

279、al.For instance,we could see a redistribution of renewables versus nuclear energy 25.https:/www.eia.gov/outlooks/aeo/narrative/electricity/sub-topic-01.php26.https:/assets.publishing.service.gov.uk/media/6581b11eed3c3400133bfbb1/Electricity_generation_and_supply_in_Scotland_Wales_Northern_Ireland_an

280、d_England_2018_to_2022.pdfLight teal=Countries with presidential/legislative elections in 2024Dark teal=Countries among the top 20 emitters worldwide with presidential/legislative elections in 2024Source:Statista“Distribution of carbon dioxide emissions worldwide in 2022,by select country”,Anchor Ch

281、ange 2023.More than 60 countries heading to the polls in 2024 many among the top emitters globallyGWEC|GLOBAL WIND REPORT 2024 33Chapter 1:Economics and investmentin South Korea,or an isolationist approach to clean technology trade in the US,depending on election outcomes.Delivering the energy trans

282、ition in EMDEsAn estimated$2 trillion per year will be needed for the new renewable energy,grid and storage infrastructure through the end of this decade to meet the goal of tripling renewables.27 There are many proposals for the industrialised countries responsible for most historical carbon emissi

283、ons to contribute the lions share of climate finance,whether in grants or recapitalisation of MDBs.Many EMDEs are seeking a substantial quantum of grant funding to be included in the“blended finance”packages offered by MDBs,Just Energy Transition Partnerships(JETPs)and bodies like the Global Financi

284、al Alliance for Net Zero(GFANZ).But grants are still a minority share of donor finance.The Resource Mobilization Plan unveiled in late 2023 for Vietnams JETP,for example,comprises around$8 billion in investment in the countrys energy transition about half of this volume comes from commercial develop

285、ment finance loans,while less than 4%comprises grants which have mostly been earmarked to specific projects.28 It is expected that the plan will help to mobilise a further$7.5 billion from the private sector,coordinated by GFANZ.29Climate finance is challenged by political realities.Domestic politic

286、al pressures and a sombre economic outlook in many developed countries make such massive transfers of capital challenging.COP28 was able to mobilise a commitment of$700 million to the new loss and damage fund a drop in the bucket of what is needed.Environmental organisation 350.org has called for as

287、 much as$200 billion in grants per year transferred from industrialised countries to benefit renewable energy in developing countries.30MDB reform is high on the list of priorities for the global climate agenda,given that public funding in renewables in EMDEs could be strategically leveraged to crow

288、d in private finance.The calls for reform include the 2022 Bridgetown Initiative promoted by Barbadian Prime Minister Mia Mottley,which calls for,inter alia:emergency liquidity from the IMF;temporary suspension of interest surcharges to client countries;expansion of available MDB lending pools by$1

289、trillion;prioritising SDGs and climate resilience in concessional lending programmes;and a new insurance of$650 billion in special drawing rights(SDRs)or other instruments that can accelerate private investment in climate mitigation and post-disaster reconstruction.31MDBs are responding to pressure

290、to reform,but not quickly enough.The World Bank is eliminating its statutory lending limit,and simplifying its business guarantee products for renewable energy in a bid to triple its annual guarantee issuance to$20 billion 27.https:/climateanalytics.org/press-releases/2-trillion-a-year-needed-to-tri

291、ple-global-renewables-by-2030-double-current-investment 28.https:/www.vietnam- 34Chapter 1:Economics and investmentProvided by:The Global Offshore Wind Alliance(GOWA)Projections show that offshore wind can deliver one-third of the required global power sector emissions reductions for a net zero worl

292、d by 2050.To achieve that,the world will need 2,000 GW of offshore wind by 2050,according to IRENAs World Energy Transitions Outlook.The World Bank estimates that there is over 71,000 GW of offshore wind technical potential globally.EMDEs such as Vietnam,the Philippines,India,Turkey,Azerbaijan,Roman

293、ia,South Africa,Colombia and Brazil,to name a few,offer significant potential for offshore wind development.However,the challenges involved in delivering the potential look different depending on where you are in the world.In the Global North,governments are focused on devising effective policy meas

294、ures to stimulate private investment.This challenge is largely focused on managing the cost of finance rather than its availability.For instance,the recent increase in interest rates has resulted in a notable surge in the cost of borrowing.EMDEs with a weaker macroeconomic risk profile are dispropor

295、tionately impacted by the global rise in financing costs.They further face additional challenges in the up-front capital intensity of offshore wind.While in regions with mature offshore wind markets like Europe,intense competition and widespread deployment have driven down prices,experience has show

296、n that early adopters of offshore wind have faced initial challenges such as higher transaction and delivery costs.The larger scale of offshore wind projects presents hurdles,prompting private sector stakeholders to emphasise certain volume thresholds and for the market to demonstrate a sustained pi

297、peline to justify the requisite infrastructure investment,including ports and associated facilities.To attract private investors,it is essential to ensure profitability,given the substantial costs involved.Hence,maintaining a focus on the financial viability and bankability of projects becomes imper

298、ative.In this context,concessional finance has a key role to play,together with targeted efforts to ensure bankability and stable frameworks to attract investments and create a pipeline of projects,which is key in driving down costs.However,at the macro level,the developing country requirement of fu

299、nding remains far from being met.Grants and concessional loans accounted for less than 1%of global renewables financing last year.Policy discussions convened by GOWA have indicated that governments can play a role in encouraging the financial sector to develop strategies and targets that align their

300、 financial portfolios with national climate commitments over time.As an example,national development banks can establish ambitious climate-related lending targets,particularly in the offshore wind sector.Flexible actions including indexation of revenue streams,a Feed-in Premium or Contracts for Diff

301、erence(CfD)mechanism have also been raised.A key focus has been on the provision of MDB-backed de-risking mechanisms to encourage private investment and finance,like blended finance solutions and guarantees.GOWA has further discussed development banks providing more support to local financing at pre

302、ferential rates whenever possible.Discussions have also highlighted that non-financial barriers hinder the bankability of projects,resulting in a misalignment between viable projects and available capital.The these include lack of policy clarity,onerous or unclear permitting requirements as factors

303、which impede the“bankability”of a project.Therefore,policymakers and stakeholders are encouraged to work collaboratively to establish a conducive environment that fosters offshore wind growth and recognises its true value in our transition to a sustainable energy future.The Global Offshore Wind Alli

304、ance(GOWA)acts as a diplomatic global driving force for an ambitious uptake of offshore wind and contribute to achieving a total offshore wind capacity of a minimum of 380 GW by 2030 and an installed capacity increase of at least 70 GW per year from 2030.Recognising the importance of fostering colla

305、boration among financial institutions,corporations and governments to expedite the required expansion of offshore wind,GOWA has been convening multistakeholder discussions focused on financing for offshore wind in EMDEs.Case Study:Financing offshore wind in EMDEsGWEC|GLOBAL WIND REPORT 2024 35Chapte

306、r 1:Economics and investmentby 2030.32 The European Bank for Reconstruction and Development(EBRD)removed its statutory lending limit in 2023,while the African Development Bank has proposed using SDR rechannelling to fund hybrid capital.The Asian Development Bank launched its Innovative Finance Facil

307、ity for Climate in Asia and the Pacific in 2023 and is aiming to raise$100 billion in new funding over the next decade.33 Reforms are certainly underway,but implementation and capital mobilisation must drastically accelerate to keep pace with the investment needs for renewables by 2030.Recommendatio

308、ns for financing the next era of wind growthWithout deliberate realignment of investment with the principles of equity and fairness,reflected in a balanced North-South distribution of capital,benefits,knowledge transfer and technology,the goal of tripling renewables will not materialise.Or worse,unc

309、oordinated investment may foster conflict and uncertainty during the process of a grand capital reallocation for the energy transition in specific countries and regions of the world.Reaching the tripling renewables goal in an orderly manner will require meaningful action in building finance and inve

310、stment to scale wind energy.This will need an“all hands on deck”approach to shift market design into models that incentivise large-scale renewable growth and,especially in the case of EMDEs,to enhance public/private partnerships to mobilise investment.GWEC makes the following recommendations for imp

311、roving the investment environment for wind energy:l Strengthen policy and regulatory frameworks to make project timelines and approvals more certain,as a means of reducing investment risk.This includes permitting frameworks which can simplify and accelerate the consenting process,prompting project r

312、ealisation through auctions by stopping“race to the bottom”mechanisms,shortening grid connection queues and creating consistent,large-volume and long-term pipelines of wind and renewable energy capacity for allocation.l Integrate the perspectives of demand-side voices,such as corporate clean energy

313、buyer clubs like the Asia Clean Energy Coalition(ACEC)and the Climate Group/RE100.These groups can work with domestic industries to ramp up ambition for renewable power and collectively strengthen the demand signals for wind and solar additions,in addition to creating viable market opportunities for

314、 offtake.l Enhance inclusive dialogue and trust-building mechanisms on climate finance at international level,using platforms under the G20,UNFCCC and MDBs to ensure support and financing facilities are in place for scaling wind industry infrastructure and supply chains,and for developing countries

315、to accelerate renewables growth.l Accelerate MDB reform to enable different forms of donor finance to be more effectively and efficiently funnelled to clean energy investments in EMDEs.Strategically targeting enabling infrastructure,such as by having public finance back the buildout of electricity e

316、xport or transmission systems,can help to crowd in private capital for renewable generation.Working with the wind industry,MDBs can also enhance technical assistance on legal,policy and regulatory frameworks for renewable energy to reduce the perceived risks that lead to higher cost of capital.l Int

317、ernational finance institutions should implement guarantee and credit enhancement mechanisms for clean energy offtake agreements and supply chain investments,particularly in EMDEs.This approach can help to mitigate some of the present risks such as offtaker creditworthiness,currency fluctuation risk

318、 and revenue stability.Capturing the value of wind energy It took the wind industry over four 32.https:/www.worldbank.org/en/news/press-release/2024/02/27/world-bank-group-prepares-major-overhaul-to-guarantee-business.33.https:/www.cgdev.org/blog/introducing-mdb-reform-tracker.GWEC.NET 36Chapter 1:E

319、conomics and investmentdecades to pass the 1 TW milestone of global installations in 2023.This progress was largely driven by an attractive cost profile that makes wind generation more favourable than fossil fuels in many parts of the world.34 However,with the goal of tripling renewables,the global

320、wind fleet is now faced with the challenge of expanding by at least 2.75 times within the next seven years.Accelerating the speed of deployment will be challenged by current policy and regulation,from overly long permitting timelines and slow grid/infrastructure build-out to a least-cost approach th

321、at risks fostering a“race to the bottom”in wind procurement.Auctions in many places compel developers to compete for small volumes of capacity by submitting extremely low or even negative bids.In uncapped seabed leasing tenders for offshore wind sites,developers face conditions that can generate unr

322、easonably high bids,distorting CAPEX calculations.It is important that governments look beyond price in energy auction schemes to promote the realisation of high-quality projects and maximise the benefits of wind energy buildout.There are various policy tools being deployed for these aims,from strin

323、gent pre-qualification stages to long-term industrial strategies;though unfortunately,even the most mature offshore wind markets are applying negative.Many countries are also exploring non-price criteria(NPC)also called qualitative or award criteria in auctions to capture socioeconomic and environme

324、ntal value from wind capacity.It is vital that NPC are considered with the broader investment picture for wind energy in mind,as well as the pace of growth required to meet climate goals.Non-price criteria:A cautious approachTypically,auctions begin with the notification of a pre-qualification stage

325、,which sets out technical specifications and minimum-level competencies required for participation.Common criteria for this pre-qualification stage include:experience and track record;legal requirements;financial competence;good conduct;and geographic specifications.35 The next stage encompasses bid

326、ding,evaluation and selection.Contracts may be based on the most competitive bids by price or the best price-quality ratio.In the offshore wind sector,seabed leasing auctions are sometimes separate from the offtake auction.Depending on market conditions and maturity,some seabed leasing tenders may p

327、rioritise the highest bids,while others incorporate NPC.While NPC can bring about additional value creation from wind energy,it also introduces a layer of complexity to the evaluation process.Given that onshore wind projects typically operate on a smaller scale with shorter construction timelines co

328、mpared to offshore wind,it is more effective to apply NPC in the offshore wind sector.Offshore wind projects benefit from larger scales and longer planning timelines,allowing for better preparation to deliver NPC effectively,though not where auctions are using negative bidding.Guardrails and guideli

329、nes for NPC in the wind sectorNPC expands the scope of auctions by procuring projects that 34.BloombergNEF,2H 2023 LCOE Update,2023.35.Soysal,Emilie Rosenlund,Auctions for Renewable Energy Support:Effective use and efficient implementation options(AURES),Policy Memo 2:Pre-qualifications and penaltie

330、s,2016.GWEC|GLOBAL WIND REPORT 2024 37Chapter 1:Economics and investmentare efficient in pricing and deliver additional value.For instance,the EU Net Zero Industry Act directs authorities contracting net zero technologies to procure based on the best price-quality ratio,considering objective,transpa

331、rent and non-discriminatory criteria that covers environmental sustainability,innovation,system integration and resilience.36There is no universal template,and regulators must consider NPC through the wider lens of market conditions and the urgency to scale wind installations.In many cases,NPC will

332、carry additional costs which should be reflected in auction pricing.37 In general,NPC can be categorised into three primary areas:38Governments should adopt a cautious approach,carefully weighing the effectiveness of achieving political,economic or social objectives through auction criteria against

333、the potential impacts on project economics.Authorities should carefully assess if the introduction of NPC would slow-down the build-out of renewables and inflate the cost of the energy transition.Auction stages and potential application of NPCSource:GWEC,Position Paper:A global wind energy industry perspective on integrating non-price criteria in auction frameworks,2024.Earlier appliaction of NPCs