Wind power has seen tremendous growth over the past few years and is expected to maintain its competitiveness in the energy market. In 2006, electricity from wind power sources contributed to less than 1% of the total supply in the world. With increased capacity and better generation, this share reached 4.2% in 2016 and is expected to increase to 7.1% in 2025. Until now, feed-in tariffs (FiTs) have been the major method of government to drive the growth of wind energy.
In 2016, solar PV annual additions surpassed that of wind, breaking another record, with 70 GW to 75 GW coming on line, almost 50% higher growth versus 2015. Annual grid-connected solar PV capacity in China more than doubled in 2016 versus 2015, with 34.5 GW becoming operational. Developers rushed to connect their projects before feed-in tariffs (FiTs) were reduced as planned in August 2016. In the United States, solar PV annual additions doubled, with over 14 GW coming on line in 2016, followed by Japan (8.5 GW).
Global wind power market size increased from approximately US$24 Billion in 2006 to US$100+ Billion in 2016 at a CAGR of 15.6%. During 2017-2025, the wind power market size is expected to grow overUS$110Billion. A major boost in the investment is expected due to increase in the capacity installations, led by countries such as China, the US, Germany, and India as well as emerging countries in the Asia-Pacific, Middle East and Africa (MEA), and South and Central America (SCA) regions.
Asia-Pacific is the largest market in terms of cumulative installed wind power capacity with 43.6% share in 2016. It is followed by Europe and North America with a share of 32.9% and 19.8%, respectively. South and Central America and Middle East and Africa had small shares of less than 3% each in the same year.