Wind industry subject to headwinds

by time news

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In the midst of the gas crisis, Europe succeeded in 2022 in extending its wind farm by a third. Encouraging progress. But insufficient according to the industry. Far too many obstacles slow down the development of this renewable energy.

15 Gigawatt more electricity thanks to the wind at a time when some countries such as France and Germany are reactivating coal-fired power plants to fill the lack of Russian gas, this is a significant boost to cover the increase in demand . This new capacity covers the needs of 10 million households. But this is still well below the necessary efforts. It would be necessary to build at least twice as many, each year, until 2030, to achieve the objectives that the 27 have assigned themselves to respect the Paris agreement (ie more than 500 Gigawatts of wind power). European industrialists are in despair: their activity is now slowing down for lack of sufficient orders.

Why such a gap between stated ambitions and the construction of new turbines?

Above all, it is a monstrous administrative bottleneck that is holding the industry back. Today there are 80 Gigawatts in the pipes in Europe, that’s four times more than what was completed last year. Construction sites awaiting a green light so that orders can be launched. It can take up to ten years to obtain the necessary permits. The projects come up against complex procedures and legal recourse by opponents. In France, two-thirds of wind projects are challenged in court. This mainly concerns new terrestrial projects. And most of the new wind farms completed in 2022 are onshore. On this mined ground, the industrialists suggest giving priority to the renovation of the existing park. Replacing older turbines with fewer, more efficient new ones will significantly increase production capacity and avoid endless project procedures.

The economic context also hampered wind projects

With the rise in raw materials and delivery difficulties, costs rose by 40%. Contracts have been dropped due to this inflation. Industrial sites have been forced to lay off. The energy crisis caused by the Russian war legitimizes the development of renewable energies, but in the end, it was rather unfavorable to wind power in particular. Because it has confused the cards of the electricity market. Governments subsidize businesses and households and tax more profit-making energy companies. This policy adopted in an emergency to defend purchasing power scares away investors who need to have visibility and stability on the price of electricity and on taxes so that their margin is guaranteed.

The wind industry is also under pressure from Chinese competition

Last fall, a Chinese company won a major contract in the UK in the Celtic Sea off Wales. Industrialists are now asking for incentives comparable to what the American administration is proposing with its Inflation Act. Due to uncertainties in the economic environment, they are expecting a difficult year as the potential is there to fill their order book. It’s bad luck for this industry, but not yet an existential threat. Because the long-term objectives are favorable to him. Wind power remains the fastest growing renewable energy.

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