The Asia-Pacific region emerged as the biggest market in installed wind power capacity last year at 42.4%, according to a report by GlobalData. Installed capacity for South and Central America, and Middle East and Africa was less than 3%.
Titled “Wind Power Market, Update 2016 – Global Market Size, Average Price, Turbine Market Share and Key Country Analysis to 2025”, the report mentions that capacity additions were similar to cumulative capacity with the Asia-Pacific region adding more than 50% of all capacity, while Europe and North America held 20.9% and 16.2% respectively.
Capacity additions were spearheaded by China, Germany and India boosting global annual additions to 66.8GW last year, which was 15GW higher than a year before. The US and Germany already have large installed capacities, but China surpassed both countries in terms of installed capacity in 2009 and 2010. The Indian Government’s efforts to achieve higher renewable energy targets, including 60GW of wind power capacity, has also boosted capacity in the Asia-Pacific region.
China has approximately one-third of the world’s wind power capacity, is home to abundant high wind sites and is also the biggest manufacturer of turbines and components. International and institutional pressure to reduce greenhouse gas (GHG) emissions by 60–65% from 2005 levels by 2030 also aided in the growth of the wind power sector in China. To achieve reduction in GHG emissions, China has been focusing on renewable energy and has set a target of adding 66GW by 2020 with 5GW to be added each year.
One of the major challenges that China, however, is facing is the underdeveloped electrical grid, which is unable to absorb the increase in wind turbines in remote areas. Government’s efforts have helped in addressing this issue by upgrading and expanding the grid. A directive issued by the National Development and Reform Commission (NDRC) advices provision of access to be given to renewable energy sources. Regulations on installation of solar heating in buildings have also been given by the Ministry of Construction.
With both China and India focusing on increasing wind power capacity, the Asia-Pacific region will be the biggest market in terms of total capacity and capacity additions during 2016–2025, according to the report.