The Asia-Pacific wind power market is expected to register a CAGR of less than 10.45% during the forecast period. Major factors attributing to the growth include the favorable government policies, the increasing investment in wind power projects, and the reduced cost of wind energy, which led to an increased adoption of wind energy, thereby positively contributing to the demand for wind energy (Mordor Intelligence, 2019).
Mordor Intelligence further asserts that onshore wind energy power generation technology evolved over the last five years to maximize electricity produced per megawatt capacity installed to cover more sites with lower wind speeds. Besides this, in recent years, wind turbines have become larger with taller hub heights, broader diameters, and larger wind turbine blades. The newly installed capacity of wind power in China in 2019 reached 25.74 GW. Of this, the new installation of onshore wind power was 23.76 GW, and the new installation of offshore was 1.98 GW. The cumulative installed capacity of wind power generation reached 210 GW in 2019.
Although the wind power market has a positive outlook across the world, the coronavirus (COVID-19) outbreak is expected to have a negative impact on the supply chain and installation operations in the Chinese wind energy industry, as well as the global wind energy. Moreover, as the majority of the global wind turbine and related manufacturers are located in China, the market is expected to witness a slight slowdown in the coming years (Mordor Intelligence, 2019).
Japan, being an island nation, has many suitable locations for offshore wind power generation. The country analyzed that offshore wind turbines can generate five times more electricity than onshore wind turbines. Also, there are likely to be land constraints for the development of onshore wind farms in the future. Owing to this, the government aims to promote more offshore projects and, at the same time, introduce necessary laws to reduce operators’ risks and encourage new entries for the companies. It can be concluded that the offshore sector is expected to gain significant traction in the market in the coming years and is expected to be the fastest-growing segment in the market (Mordor Intelligence, 2019).
VIHK's approach is to play an active role in aiding the advancement and build up of wind energy facilities in Asia.