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Vestas wind turbine at Macarthur, Australia. Image Credit: Vestas Wind Systems A/S

Clean Power

Global Wind Turbine Order Capacity Increased 111% In Q2’19

Global wind turbine order intake increased by an impressive 111% in the second quarter of 2019, according to new figures published by renewable energy research firm Wood Mackenzie Power & Renewables, overtaking the previous record set in the fourth quarter of 2018. 

Global wind turbine order intake increased by an impressive 111% in the second quarter of 2019, according to new figures published by renewable energy research firm Wood Mackenzie Power & Renewables, overtaking the previous record set in the fourth quarter of 2018.

Vestas wind turbine at Macarthur, Australia
Image Credit: Vestas Wind Systems A/S

Wood Mackenzie published its Global Wind Turbine Order Analysis: Q3 2019 report last week, showing that wind energy developers around the world ordered a record 31 gigawatts (GW) of wind turbine capacity in the second quarter of 2019 — a 111% year-over-year increase and a new record.

Year-to-date demand amounted to 79 GW thanks in large part to increased demand in China and the United States and despite a decrease of 41% YoY in Europe during this year’s second quarter. China and the US enjoyed impressive quarters for capacity ordered as developers made a beeline to procure turbines with sufficient time to commission projects before 2020 subsidy deadlines in both countries ran out.

“Developers in China ordered more than 17 GW in Q2 2019, a 267% uptick YoY compared to Q2 2018,” said Luke Lewandowski, Wood Mackenzie Director of Americas Power & Renewables Research. “71% of firm order capacity was secured in the Northern region’s onshore wind market in Q2 2019. The order volume for five major developers in China exceeded 1 GW last quarter.

“The record quarter in China included more than 3 GW of offshore capacity, nearly 2 GW more than in Q2 2018 and an 800 megawatt (MW) increase on the previous quarterly record in the country (Q1 2019). This added to a backlog of nearly 12.5 GW.”

Vestas again walked away with the largest share of order capacity for the fifth straight quarter and relishing in the best quarter for an Original Equipment Manufacturer in any year.

“Despite a massive quarter for orders in China, diversity in the market – illustrated by seven OEMs with more than 1 GW of order capacity – prevented a dominant leader, which allowed Vestas to retain the top spot,” explained Lewandowski. “Eight of the top ten onshore models in Q2 are manufactured by Chinese OEMs, six of which made the top 10 for the first time ever. All six were new models that had never been ordered publicly prior to Q2. Vestas was the only non-Chinese OEM with any models in the top 10.”

Image: Wood Mackenzie

Turbine pricing was also shown to have increased in several markets due to strong demand and larger, newer, and more expensive models reaching markets around the world.

“Pricing in the US and China increased due to strong demand, as order books continue to fill up in preparation for 2020 installations,” concluded Lewandowski. “Turbine prices in India have remained unchanged QoQ as developers push back against aggressive auction price ceilings set by the government, however the US dollar has gained 4% in value against the Indian rupee since July 2019. This makes Indian turbine prices lower in USD.

“Newer models in the market and demand for larger turbines in Brazil caused pricing quotes to rise.”

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