Wind power ca­pac­ity to dou­ble over next decade

The National - News - - BUSINESS -

Wind power ca­pac­ity is ex­pected to nearly dou­ble over the next decade, fu­elled mainly by China as the world’s biggest en­ergy con­sumer seeks to in­vest in re­new­able sources, ac­cord­ing to Fitch So­lu­tions.

In­stalled wind power ca­pac­ity will reach about 1,100 gi­gawatts glob­ally by 2028, up from 562GW at the end of 2018, ac­cord­ing to the in­dus­try fore­cast re­port.

“China will make up 44 per cent of net ca­pac­ity growth over this time frame, high­light­ing the im­por­tance of the mar­ket to global re­new­ables in­vest­ment,” the re­port said.

Re­new­able en­ergy ca­pac­ity ad­di­tion grew 14.5 per cent last year, near­ing the record-break­ing in­crease in 2017, but still ac­counted for only a third of the in­crease in power gen­er­a­tion, BP said in its an­nual sta­tis­ti­cal re­view, an im­por­tant bell­wether for the global en­ergy in­dus­try.

BP chief ex­ec­u­tive Bob Dud­ley said in­stalling re­new­ables is key to “de­car­bon­is­ing the power sec­tor”, which is the biggest chal­lenge fac­ing the global en­ergy sys­tem over the next two decades.

Wind power’s share of the to­tal non-hy­dro re­new­ables ca­pac­ity will drop to 44 per cent by 2028, down from 47 per cent in 2018, mainly thanks to the rapid growth in so­lar power ca­pac­ity, Fitch So­lu­tions said.

In a sep­a­rate note, Fitch said so­lar power ca­pac­ity growth is set to in­crease by 742GW over the pe­riod, whereas wind power will grow by 536GW. To­tal non-hy­dro re­new­able en­ergy will reach more than 2,500GW by 2028, more than dou­bling from 1,200GW at the end of last year.

How­ever, the wind power sec­tor will main­tain a “steady share” in power gen­er­a­tion, which will only de­cline by 1 per cent, to 49 per cent, over the same pe­riod.

This is “in­dica­tive of the gen­er­ally higher ca­pac­ity fac­tors of wind power projects vis-a-vis so­lar power projects”, the re­port said.

China will be­come the biggest mar­ket glob­ally for wind power ca­pac­ity ad­di­tion over the next decade, de­spite plans to cut re­new­able power sub­si­dies by 30 per cent in 2020.

“China’s wind sec­tor growth mo­men­tum will re­main ro­bust de­spite the im­mi­nent phase-out of sub­si­dies for the coun­try’s re­new­ables sec­tor,” Fitch So­lu­tions said.

Deena Kamel

Wind power’s growth will be driven by China

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