Windicator: Asia Pacific installed twice as much as Europe in 2014

The growth rate for 2014 reached 11%, lower than the compound annual growth rate of 18% for the years 2010-2014, but an indication that the industry continues to grow rapidly.

Between the years 2000 and 2010, the compound annual rate of growth was 25%, growing from 17.7GW wind-energy capacity in the world to 191GW. Such a high growth rate was unsustainable and the increases have declined since that time.

The electricity-generating capability of today's 337GW of wind is around 738TWh per annum. That is more than the annual electricity requirements of Canada and roughly double the consumption in the UK.

Top performer

The strongest-performing region in 2014, in terms of added megawatts, was Asia-Pacific, with China leading the way and installing a further 14GW, or 19%. The rate of growth there shows no signs of slowing, and is likely to continue as the industry gains confidence and competitiveness improves. North America, as a whole, added a disappointing 8%, with a poor performance from the US. However, the American Wind Energy Association reported that 13.6GW was under construction at the end of September, so progress may accelerate in 2015. Canada was the bright spot in North America, increasing its capacity by 17%.

Political climate

Progress in Europe has slowed, adding just under 8GW, which is less than a quarter of the total additions globally. Germany is still the star performer, but its additional capacity of 2GW falls far short of the figures realised a few years ago. However, the political climate remains positive. The situation in the UK, which recorded the second-highest European capacity addition in 2014, is more complex, with the ruling party facing an election and some of its members opposing wind energy. Progress in Spain has been very sluggish since government support was scaled back, and a mere 39MW was installed last year.

Overall, the political climate remains favourable to renewable energy, strengthened by recent data that suggests that 2014 is on course to be one of the warmest years on record, according to the World Meteorological Organisation and the UK Met Office. Preparations for the 2015 climate change summit have now begun and this is likely to yield positive results.

Future prospects

There is a good consensus between projections of future growth from a number of authorities, including the Global Wind Energy Council, the World Wind Energy Association and the International Energy Agency. All suggest that 500GW will be reached by 2020 and 1,000GW by 2025, or shortly after. Windpower Monthly's data and research division Windpower Intelligence shows a similar trend.

As the industry is continuing to innovate, generation costs are expected to continue falling. Wind's low carbon credentials and low risk profile should ensure that it remains an attractive choice for electricity generation.

Although the price of oil fell significantly during 2014, this has not yet had a significant impact on anticipated future prices of natural gas in the US or in Europe. The US Department of Energy suggests natural gas prices for electricity generation will move slowly upwards (by about 10%) during the next ten years, and so the competitive position of wind relative to gas is likely to improve during that period.

The quarterly Windicator is an indicator of the state of play. Changes in the table can be corrections received rather than additions or subtractions. We welcome corrections.

View the table here