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Energy Transition


Global Onshore Wind Market Report


The ongoing worldwide energy crisis is a stark reminder of the long-pending need for resilient energy systems. This highlights the critical importance of transitioning towards renewable energy. According to the International Energy Agency, global energy investments will increase by 7% in 2023, reaching USD2.75 trillion. This will be primarily driven by investments in clean power generation resources. However, much more needs to be done to address the emerging complex trade-off between demand and sustainability in energy generation and consumption cycles.

The demand pressures are currently affecting the short-term through high fossil fuel prices and a competitive scramble for supplies. While this might urge countries to address their near-term issues, it is important to remember the longer-term priorities of sustainability and resilience. A deliberate and focused policy push is needed for this. Globally, oil and gas companies are witnessing almost 10% higher investments this year, with cumulative profitability projected to cross USD2 trillion.

The accelerated push for renewable energy projects in several markets is an encouraging sign. Utility-scale power projects, such as those based on wind and solar, are the most important, given the burden on power generation for its fossil fuel dependence and emissions. Mature renewable energy technology options, such as onshore wind, are instrumental in scaling up the share of clean energy at competitive costs. Furthermore, hybrid configurations involving wind-plus-storage or even wind-plus-solar-plus-storage, are increasingly making commercial sense for the flexibility and dispatch that were long regarded as the bane of renewable energy projects.

Realizing such potential will depend on how quickly the bottlenecks ease. Apparently, there are terrawatts of ‘shovel-ready’ onshore wind capacity that are locked-up for want of permissions or interconnection requests. Similarly, competitive choices between wind versus solar needs to be resolved as complementarity can be more efficient for grid connectivity. Investors’ response to the select initiatives in this regard across the countries confirm how responsive the markets are to such steps.

The optimistic picture still carries its challenges and riders. High borrowing costs, a looming recessionary outlook, and the pricing adjustments across the supply chain – all contribute towards an uphill path. This is a phase that will have to be borne out until market forces balance. The capital flows in the overall energy market and onshore wind, in particular, are more likely to be aligned to fundamentals than transitory shocks. Therefore, we believe that the investment commitments are unlikely to change course drastically.

PAF’s Annual Primer series aims to offer an overview of the demand drivers, opportunities, challenges, and outlook prevalent in various major markets for different renewable energy technologies, including solar PV and onshore wind. We hope you find our annual review of the Global Onshore Wind Market informative and enjoyable to read. We look forward to briefing you on other renewable energy technologies in the upcoming months.

This report is the result of a collaboration between PAF and Alchemy Research and Analytics, completed from June to October 2023. We would like to express our gratitude to the following executives for their contribution in preparing the report:

Pan American Finance

Alchemy Research and Analytics

  • Tapas Bhowmik
    Senior Manager
    Alchemy Research and Analytics
  • Souradeep Basu
    Associate Manager
    Alchemy Research and Analytics
  • Maurya Mukherjee
    Senior Analyst
    Alchemy Research and Analytics

Global Onshore Wind Report 2023

The report provides an insight into the Global Onshore Wind market. The findings of the report are based on research conducted by Pan American Finance (PAF) and its research partner Alchemy Research and Analytics. The report provides an overview of the Global Onshore Wind industry with insights on prevailing market conditions encompassing recent trends and drivers, challenges, and outlook in major countries across Europe and Americas. The report starts with a high-level view on the dynamics of the industry, touching upon the regional variations and analysing the implications of the same. It then profiles the major markets country-wise, to provide a holistic view of the state of the industry in these countries, highlighting the growth opportunities, demand drivers and prevalent challenges. Macroeconomic data was sourced from the publications of multilateral institutions such as the International Monetary Fund (IMF). The industry-specific data is attributed to industry associations, Government authorities / statistical departments, Bloomberg New Energy Finance (BNEF) and International Energy Agency (IEA). This was supplemented by news reports, trade journals and related sources.