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Søren Lassen
Head of Offshore Wind Research
Søren Lassen
Head of Offshore Wind Research
Søren tracks, analyses and forecasts value chain dynamics, technological advancements and the market outlook.
Latest articles by Søren
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Opinion
Offshore wind energy: what to look for in 2024
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Featured
Wind 2024 outlook
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Opinion
Elevated subsidies enable offshore wind to end 2023 on a high note
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Opinion
How reversible are the recent setbacks of the offshore wind sector?
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Opinion
Net zero offshore wind bids in UK’s latest tender: the outcome the sector needed?
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Opinion
Offshore wind: German auction wins show Big Oil has not left the party
Aaron Barr
Global Head, Onshore Wind Energy Research
Aaron Barr
Global Head, Onshore Wind Energy Research
Latest articles by Aaron
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Opinion
EU wind pledges: a little overblown?
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Featured
Wind 2024 outlook
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Opinion
Onshore wind energy: what to look for in 2024
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Opinion
Supply shortages and an inflexible market give rise to high power transformer lead times
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Opinion
IRA set to increase cumulative US wind energy installations by over 50% in the next five years
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Opinion
The Inflation Reduction Act and its impact so far
The wind energy landscape is poised for a significant turnaround in 2024 after grappling with challenges in 2023, particularly outside of China where onshore wind markets contracted by 11%. Global wind project development faced hurdles like fluctuating policies, elevated equipment costs, high interest rates, permitting issues and transmission delays. However, the Chinese wind energy market remained resilient, set to install over half the world's wind energy capacity in 2024.
Expectations for a recovery in 2024 are supported by record wind turbine order backlogs, unprecedented policy momentum globally, and increased efforts by governments to accelerate wind energy deployment to meet climate goals. Europe, particularly Spain, is anticipated to experience substantial growth, driven by improved permitting and policy support. The Middle East and Africa are also poised for significant market expansion, with notable growth in Egypt, Saudi Arabia and South Africa.
Our onshore and offshore wind reports emphasise the need for Western wind turbine OEMs to return to profitability, highlighting a slowdown in product innovation and a focus on simplifying portfolios. While Chinese OEMs continue to introduce new turbine products, signs of vulnerability emerge as turbine prices hit record lows, leading some to diversify into project development and export markets.
Onshore wind in 2024
In the onshore wind sector, a crucial focus on fleet reliability and operations and maintenance (O&M) profitability takes center stage. As the global wind energy market surpasses 1 TeraWatt of installed capacity, O&M businesses are becoming critical for OEMs' financial recovery, with services order backlogs surpassing turbine supply order backlogs.
Offshore wind in 2024
The offshore wind sector, which faced setbacks in 2023, is expected to rebound in 2024 with tangible opportunities and a record number of tenders. Governments and bidders will play a crucial role in getting pricing right, given the increased focus on the bottom line. Our report also points to challenges such as supply chain constraints, transmission planning barriers and the need for adjustments to 2030 offshore wind targets.
In summary, 2024 holds the promise of a global wind energy resurgence, with key areas of focus including market recovery, reliability, profitability for OEMs and the offshore wind sector's evolving dynamics.
Read this year’s onshore and offshore 2024 prediction reports (linked below) for in-depth analysis of the trends and developments shaping the wind energy landscape in 2024.
