The installed wind capacity in the EU reached 16 GW in 2022 and although greater by 40% compared to 2021, well behind the gap that needs to be closed to meet the 2030 targets.
At the same time, investments in new wind farms and orders for wind turbines decreased in 2022, due to non-helpful interventions in the electricity market, but also inflation.
According to WindEurope, EU leadership and member state governments need to regain investor confidence and act proactively to support the European wind energy supply chain and allow it to grow.
Specifically, Germany installed the largest capacity followed by Sweden, Finland, France and the United Kingdom. Thus in total in Europe the new capacity reached 19 GW in 2022, with a total wind energy potential of 255 GW.
Furthermore, 87% of this was onshore, as only 2.5 GW of new offshore wind farms were developed.
They are not enough for the “green” goals
In the period 2023-2027, an average of 20 GW per year is expected to be installed, for a total of 129 GW. However, according to WindEurope, in order to reach the EU’s climate targets, an average of 31 GW per year will be needed until 2030. This would be possible if the bloc continues to simplify rules and licensing procedures, restore confidence of investors and invest in infrastructure and specialized labor for the development of wind farms
Specifically, regarding Greece, 590 MW are expected to be installed this year, 330 MW for 2024 and 410 MW for 2025.
Licensing is “key”.
Europe is making progress in simplifying licensing rules and procedures, but as the head of the Association, Giles Dickson, underlines, “licensing remains the number one barrier to the expansion of wind energy in Europe”.
Thus, the directive on the classification of RES projects as “overriding public interest” should be enshrined, as well as the two-year licensing period should be defined more clearly.
Excessive interventions in the energy market are a problem
Furthermore, it is problematic that in 2022 only 13 GW of new investments in wind farms were announced, while not a single offshore wind farm reached a final investment decision. At the same time, orders for wind turbines fell by 47% compared to 2021, to 11 GW.
High inflation played a role in this, which increased the cost of wind turbines by 25-40%. That is why it is noted that the governments should readjust the prices in the tenders.
In addition, “unhelpful” interventions in the electricity markets, according to WindEurope, by individual governments, which undermine investor confidence, also had a negative impact.
Thus, it concludes that the upcoming reform of the EU electricity market should urgently restore this confidence, making it clear that the emergency measures are temporary and must be aligned between member states. CfDs will play a key role for new investment, but it should also be possible to finance projects with PPAs where this is more beneficial to the market.
