Global wind turbine order intake during the first quarter (Q1) of 2023 surges by 27% year-over-year (YoY), reaching 23.5 GW, a record high so far, given the increase in wind turbine orders in China, Latin America, and the U.S., according to a recent analysis by Wood Mackenzie.

The total value of global wind turbine orders is estimated to have reached $15.2 billion, representing a YoY increase of $3 billion.

China achieved a new Q1 record with 15.2 GW of wind turbine order intake. Latin America also experienced record growth during the first quarter, reaching 1.7 GW.

The United States saw a significant jump in activity, with 1.8 GW of orders, more than doubling its performance compared to Q1 2022 and surpassing its total for the first half of 2022.

According to Luke Lewandowski, Research Director at Wood Mackenzie, China remains the dominant force behind global wind turbine activity and is expected to continue leading in the foreseeable future. However, it is encouraging to observe other regions gaining momentum.

Latin America, particularly Argentina, and Brazil, experienced a record-setting first quarter. Additionally, the United States is witnessing renewed confidence and growth in orders, partly attributed to the Inflation Reduction Act (IRA), Lewandowski added.

There was a 12% YoY decrease in offshore wind orders.

However, growth was observed in Europe, which accounted for 3 GW of offshore activity. Overall, offshore wind orders represented 13% of all orders in the first quarter.

 

Despite growth in certain regions outside of China, overall activity from Western original equipment manufacturers (OEM) remained stagnant, with a 9% YoY decline in Q1 orders. The strategies pursued by these two markets continue to differ significantly.

China prioritizes growth strategies to meet local government renewable requirements, while Western OEMs focus on maximizing profitability. This fundamental difference in approach shapes their respective market dynamics.

Luke Lewandowski stated that Western original equipment manufacturers (OEMs) have maintained a cautious and selective approach to their activity to enhance profitability. In markets such as the United States, pricing has remained relatively stable.

Western OEMs have implemented strategies such as controlled technology development and price indexing to accelerate the restoration of profitability. These measures have contributed to the stabilization of turbine pricing in the current quarter.

The report said Envision secured the largest share of new orders for the second consecutive quarter, with a total of 3.6 GW. Vestas followed closely behind with 3.3 GW of new orders, while China-based SANY secured 2.6 GW, making them the third-largest recipient of new orders during this period.

According to China’s National Energy Administration, the country has set a massive target of 160 GW of solar and wind energy capacity additions in 2023, up 13.5% from the actual installations in 2022.

The U.S. Department of Energy recently released its Offshore Wind Energy Strategy, which targets deploying 30 GW of offshore wind projects by 2030 while spurring $12 billion per year in direct private investment.

A report by Global Wind Energy Council suggests that wind projects could generate additional revenues of  $12.5 billion and create 130,000 full-time equivalent work years over the next five years for the economies of Argentina, Colombia, Egypt, Indonesia, and Morocco, which have a combined potential of 3.5 GW.