In 2022, Europe added 19 GW of wind power. 16 GW of those were in the EU. 40% more than 2021. It’s far behind the EU’s 2030 ambitions.
In 2022, government interference in electricity markets and inflation reduced wind farm and turbine investments. Restore investor confidence, EU and national governments. They must actively promote the European wind supply chain.
In 2022, Europe added 19 GW of wind power. Germany built the most, followed by Sweden, Finland, France, and UK. Europe has 255 GW of wind power. WindEurope Annual Statistics 2022 found those. Europe added 87% onshore wind capacity last year. New offshore wind farms were 2.5 GW.
Not enough for EU targets
EU-27 wind farms added 16 GW. 40% more than 2021. The EU will build 20 GW of new wind power year from 2023 to 2027. That won’t meet EU energy and climate goals. EU must build 31 MW annually till 2030.
Permitting
Europe is finally simplifying permission procedures. REPowerEU has helped. For the first time, last year’s emergency permitting measures declared renewables expansion in the “overriding public interest”. Overriding public interest is freeing German wind energy projects from judicial cases.
The Renewable Energy Directive amendment is crucial. The trilogues must nail the amendments on the table: enshrining overriding public interest in the Directive; clarifying the 2-year permission deadline; population-based species protection; and repowering procedures.
Inflation and market interventions hurting investment
Europe consumes more wind power. 17% for EU27+UK. By 2030, the European Commission wants wind to supply 43% of EU electricity. New investments and wind turbine orders are declining. Wind farm investments totaled 13 GW in 2022. No offshore wind farm completed investment. 2021 wind turbine orders plummeted 47% to 11 GW.
Wind investments plummeting
Two factors are reducing wind investments. First, developers’ revenues don’t reflect input price increases. Wind farm developers frequently have a revenue base that is not tied to rising commodity and input costs, which have raised turbine prices by 25-40%. Index auction prices and duties.
Second, national governments’ counterproductive electrical market interventions have shattered investor confidence. The EU’s Energy Market Design overhaul must restore confidence immediately. Emergency measures must be temporary and coordinated among Member States. Contracts-for-Difference will drive new investments. But, investors should be free to use Power Purchase Agreements (PPAs) and merchant financing if they like.
European wind supply chain strengthening
Europe’s wind energy supply chain struggles with low volumes and rising input costs due to permission constraints. Yet, Europe needs to grow to produce enough turbines.
The EU Net-Zero Industry Act should ease state assistance requirements and enable grants and financing for new plant and infrastructure. National investment tax credits matter. The European Investment Bank should support specific plant investments.
Germany and France will not benefit more from this. Spain and the Netherlands announced offshore foundation manufacturing investments. Greek cable plant upgrades. Poland is drawing turbine factory and port projects.
