Global Wind Turbine Demand Soars on China Energy Push

Global onshore wind turbine orders saw a 23% year-on-year rise in the first half of the year, with orders from China largely responsible for the surge in demand.

Turbine purchases amounting to 91.2 gigawatts (GWs) of generating power were made over the six-month period, Wood Mackenzie said in a report on Monday.

China’s wind turbine production capacity is by far the biggest globally compared to Europe and the United States. Western original equipment manufacturers (OEM) are struggling to keep pace, challenged by China’s competitive advantages in pricing and availability.

Global order intake for wind turbines exceeded 66 GW in the second quarter of the year, owing to Chinese demand, per the Wood Mackenzie report.

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Earlier this year, top wind power companies in the West such as Siemens Energy highlighted an industry struggling with project delays, equipment problems and inflation.

Western OEMs struggled due to intense competition over modest demand and contributed just 13% of global order intake in the first half of the year, the report said.

Orders outside of China fell by 16%, dropping 42% year-over-year in the US and Europe.

Global onshore order activity has picked up in H1 but the offshore sector has struggled with order intake, decreasing almost 38% compared to the same period a year ago.

“Chinese OEMs continue to break records for order intake on activity both domestically and aboard,” said Luke Lewandowski, vice president, global renewables research at Wood Mackenzie.

Meanwhile, the offshore market faced “challenging economics [which] continue to delay conversion into firm orders,” he added.

Reuters with additional editing by Sean O’Meara

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Sean O’Meara

Sean O’Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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