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02 MARKET AND INDUSTRY TRENDS
capacity included Japan and the Republic of Korea (both over
0.2 GW), helping to bring the region’s total installations above
175 GW. 25 Chinese wind projects also were under construction in
Pakistan, although no new capacity came online in 2015. 26
The United States ranked second for additions (8.6 GW) and
cumulative capacity at year’s end (74 GW) and held onto first
place for wind power generation (190.9 TWh) during 2015. 27 Wind
power was the top source for new US power generating capacity,
accounting for over 40% of the total. 28 More capacity was added
in the fourth quarter of 2015 than in all of 2014; the jump (+77%)
in annual additions was driven by short-term extensions of the
Production Tax Credit (PTC) in 2013 and 2014. 29 In late 2015, a
multi-year PTC extension and phase-out promised to provide
policy stability for a longer period than ever before. 30 Texas led
for capacity added (1.3 GW), followed by Oklahoma, Kansas and
Iowa; Connecticut installed its first utility-scale project. 31
US utilities continued to invest strongly in wind power, with some
going beyond state mandates based on favourable economics. 32
The cost-competitiveness of wind power also drove corporate
and other purchasers, making 2015 the first year in which nonutility
customers represented about half of the known (4 GW) US
wind power purchase agreements. 33 By year’s end, an additional
9.4 GW of capacity was under construction. 34
Neighbouring Canada added 1.5 GW for a total of 11.2 GW, ranking
sixth globally for additions and seventh for total capacity. 35
Although growth slowed relative to 2014, wind energy has
remained Canada’s largest source of new electricity generating
capacity for five years. 36 Ontario continued to lead, adding 0.9
GW (for a total of 4.4 GW), followed by Québec (added 0.4 GW)
and Nova Scotia (added 0.2 GW), which installed one of Canada’s
largest municipally owned wind projects. 37 Wind power capacity
at end-2015 was enough to supply 5% of Canada’s electricity
demand, with much higher shares in some provinces. 38
The European Union saw a new record for annual installations,
due largely to Germany, which accounted for nearly half of the
region’s market in 2015. The EU brought online some 12.8 GW of
wind power capacity, for a total approaching 141.6 GW, including
11 GW operating offshore. 39 Offshore capacity accounted for
almost one-fourth of 2015 additions, twice the previous year’s
share. 40 Wind represented the largest percentage of new power
capacity in the region (over 44%), followed by solar PV; new fossil
fuel power capacity (about 23% of installations) was far exceeded
by retirements. 41 Between 2000 and 2015, wind increased from
2.4% to 15.6% of total EU power capacity. 42 However, these
advances and the scale of the EU market mask volatility in many
countries due to weakened policy frameworks. 43
Germany installed over 6 GW (net 5.7 GW, considering
decommissioned capacity), for a total of almost 45 GW. 44 These
installations reflected the grid connection of a large amount of
offshore capacity that was constructed in 2014, and a rush to
complete new projects before Germany switches to a tendering
scheme in 2017. 45 Germany’s gross generation from wind power
was 88 TWh – up 53% relative to 2014 due to increased capacity
and good wind conditions. 46
After Germany, the leading EU installers were Poland (1.3 GW),
which overtook the United Kingdom for additions (1 GW), and
France (1.1 GW). 47 Finland, Lithuania and Poland experienced the
highest annual growth rates; Poland’s record additions (nearly
three times the 2014 level) were driven by the anticipation of a
new policy scheme in 2016. 48 Spain continued to rank second in
the EU for total operating capacity (23 GW) but did not add wind
capacity in 2015. 49
After Asia, Europe and North America, Latin America was the
next largest installer by region, with nine countries adding nearly
4.4 GW to reach about 15.3 GW. 50 Brazil (2.8 GW) was responsible
for about 57% of the region’s market, despite its political and
economic woes, and ended the year with 8.7 GW. 51 About 357
MW of Brazil’s new capacity was commissioned but not yet gridconnected
by year’s end. 52 Wind power has contributed to the
avoidance of power rationing and has brought economic revival
to Rio Grande do Norte, Brazil’s leading state for wind capacity. 53
Brazil was followed by Mexico (adding 0.7 GW to pass 3 GW),
Uruguay (adding 0.3 GW) and Panama (adding 0.2 GW). 54
Turkey again ranked in the top 10 for new capacity in 2015, adding
nearly 1 GW to end the year just above 4.7 GW. 55 In the Middle
East, Jordan opened its first large commercial wind farm. 56 Others
in the region advanced projects – including Iran, with as much as
155 MW at year’s end and plans for several additional projects,
and Kuwait, which was planning its first wind farm. 57
The total African market was smaller than in 2014, due in part
to financial difficulties in South Africa. 58 Even so, South Africa
added nearly 0.5 GW (for a total just over 1 GW) to surpass
Morocco and lead the continent past the 3 GW mark. 59 Egypt
added 200 MW, and Ethiopia installed a large plant (153 MW),
nearly doubling the national total. 60 Projects in Kenya, including
the 300 MW Lake Turkana wind farm, were stalled due to land
disputes. 61 However, by year’s end there was significant activity
under way in Egypt and Morocco, and numerous small projects
were being launched across Africa. 62
Australia was responsible for nearly all new capacity in
the Pacific. 63 The country added almost 0.4 GW for a total
approaching 4.2 GW, and wind power accounted for about 5% of
national electricity consumption in 2015. 64
Offshore, an estimated 3.4 GW of capacity was connected to
grids in 2015, about double the additions in 2014, for a world
total exceeding 12 GW. 65 The vast majority of added capacity
(89%) and total operating capacity (91%) was in Europe, where
a record 3 GW was installed for a total 11 GW of grid-connected
capacity off the coasts of 11 countries. 66 Germany accounted for
about two-thirds of global offshore additions (adding 2.2 GW),
counting capacity installed but not grid-connected in 2014. 67 It
was followed by the United Kingdom (571 MW), China (361 MW),
the Netherlands (180 MW) and Japan (3 MW), the only other
countries to add capacity offshore in 2015. 68 Although policy
changes have delayed some development, the United Kingdom
continued to lead in total offshore capacity with 5.1 GW at year’s
end; it was followed by Germany (3.3 GW), Denmark (1.3 GW)
and China (1 GW). 69
Deployment offshore has been relatively slow in Asia and North
America. 70 China is about three years behind its 2015 target to
deploy 5 GW, delayed by high costs, challenging environmental
conditions, and regulatory and technical issues. 71 India approved
an offshore wind power policy, opening the door for future
development. 72 In the United States, construction began on the
first project (30 MW). 73
Offshore and on land, independent power producers (IPPs)
and energy utilities remained the most important clients in
terms of capacity under construction and in operation, but
76