Investment in innovation and additional capacity is needed for the wind industry to deliver the growth that the renewable energy targets for 2030 envision.

But many in the industry are struggling to get back into the black after a few years of blood-red bottom lines - and this concerns analyst Feng Zhao, head of strategy and analysis at the Global Wind Energy Council, GWEC.

”Our preliminary figures indicate that 2023 was the best year ever for new wind energy capacity deployment. More than 110 gigawatts were connected to the grid globally, compared to 78 gigawatts the year before - a growth of 50%. But in that light, it’s worrying to see that the industry continues to suffer financially,” Feng Zhao says in an interview with MarketWire during a wind turbine conference in Bilbao, Spain.

Losses are also plaguing Chinese wind turbine manufacturers and subcontractors after a huge price war has ravaged the supply side. The market in 2023 saw an incredible 75 gigawatts of new grid-connected capacity - more than 60% of global wind turbine installations.

While the sector globally is characterized by weak financial performance, the prospects for growth in the global wind turbine market have arguably never been better.Globally, installed wind capacity crossed 1 terrawatt last year, which took the industry over 40 years to set up. But in just seven years to 2030, the figure needs to double to reach the targets.

”It sounds fantastic, but the challenge is that no one is making money. The entire value chain from material suppliers, to component suppliers and wind turbine manufacturers are in an unhealthy financial situation. This has to change,” says Feng Zhao.

He sees a risk that the lack of profitability in the sector will hit the investments needed to improve the sector’s sustainability goals - and the 2030 deployment targets.

GWEC has previously warned that the market around 2026 and 2027 could be hit by undercapacity, particularly in offshore wind.

”Reaching 2 terawatts by 2030 will require over 190 gigawatts of annual installed capacity globally. But the global production capacity in the industry is around 160 gigawatts. We have a 20-30 gigawatt deficit, and if no one is making money, who will make the new investments. This is a challenge and something that needs to change at the industry level,” states Feng Zhao.

Translated using DeepL with additional editing by Kristoffer Grønbæk