Written by 6:58 am EU Investment

Turbine orders in EU fall 36% in third quarter: WindEurope Report

Highlights :

  • The report finds that inflationary cost pressures, slow permitting and uncertainty around the EU’s emergency electricity market interventions are stalling orders for new wind turbines.
  • WindEurope said that EU requires a step change in its policy like accelerating permitting of new projects, giving renewables investors’ visibility, and strengthening and expand of the European wind supply chain.

The new report by WindEurope – Wind Turbine Orders Monitoring Q3 2022 – has said that the wind turbine orders in Q3 2022 fell by 36% compared with Q3 2021 signifying slowing wind energy growth. It also said that Europe urgently needs to solve permitting and strengthen its wind energy supply chain. The report finds that inflationary cost pressures, slow permitting and uncertainty around the EU’s emergency electricity market interventions are stalling orders for new wind turbines.

As far as orders are concerned, Finland ordered most new capacity with 322 MW, followed by Sweden and Germany. The total total orders in 2022 are for 7.7 GW. The EU aims 510 GW of wind energy by 2030. This means the wind industry should install 39 GW of new wind each year up to 2030. At the current rate of turbine orders Europe would fall well short of this target.

The Q3 numbers are part of a downward trend in wind turbine orders. Disclosed wind turbine orders in Q1 2021 were at 2.8 GW and have been generally decreasing since. WindEurope said that EU requires a step change in its policy like accelerating permitting of new projects, giving renewables investors’ visibility, and strengthening and expand of the European wind supply chain.

Alongside improvements to permitting, investors and developers need clarity on future revenues before they can move ahead with new projects and order new turbines. WindEurope reports that National Governments must clarify their approach to revenue caps on inframarginal producers of electricity (such as wind) as soon as possible in line with the industry’s 6 recommendations.

Slow permitting and insufficient market size continue to harm the European wind energy supply chain. And costs for raw materials, components and international shipping have risen sharply, increasing the pressure on the European wind industry. The industry needs political support, opines WindEurope.

WindEurope report mentioned that the European Union must ensure that the Recovery and Resilience funding is channelled to strengthen and expand the wind energy supply chain. The European Investment Bank can play a key role in supporting the supply chain too. So can tax credits similar to those the US now use under their Inflation Reduction Act.

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