Global wind turbine orders driven higher in H1 2024 on Chinese demand
Sept 16 (Reuters) -Global onshore wind turbine orders hit 91.2 gigawatts (GWs) in the first half of the year, a 23% year-on-year rise, due to higher demand in the second quarter from China's northern region, Wood Mackenzie said in a report on Monday.
WHY IT'S IMPORTANT
China's wind turbine production capacity is by far the biggest globally compared to Europe and the United States. Western original equipment manufacturers (OEM) are struggling to keep pace, challenged by China's competitive advantages in pricing and availability.
Global order intake for wind turbines exceeded 66 GW in the second quarter of the year, owing to Chinese demand, per the Wood Mackenzie report.
CONTEXT
Earlier this year, top wind power companies in the West such as Siemens Energy ENR1n.DE highlighted an industry struggling with project delays, equipment problems and inflation.
Western OEMs struggled due to intense competition over modest demand and contributed just 13% of global order intake in the first half of the year, the report said.
Orders outside of China fell by 16%, dropping 42% year-over-year in the U.S. and Europe.
Global onshore order activity has picked up in H1 but the offshore sector has struggled with order intake, decreasing almost 38% compared to the same period a year ago.
KEY QUOTE
"Chinese OEMs continue to break records for order intake on activity both domestically and aboard," said Luke Lewandowski, vice president, global renewables research at Wood Mackenzie.
Meanwhile, the offshore market faced "challenging economics (which) continue to delay conversion into firm orders," he added.
Reporting by Pooja Menon in Bengaluru; Editing by Janane Venkatraman
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