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In 2024, the global onshore wind industry achieved a major milestone, installing a record-breaking 109 GW of new capacity, pushing the global operational total past 1,050 GW. This surge in development underscores the sector’s growing importance in the global renewable energy mix. However, despite this impressive progress, the industry is now facing significant supply chain challenges that could hinder further growth and delay efforts to meet net-zero goals. A closer examination reveals several pain points in the supply chain, including the pressure to deliver larger turbines at lower margins, uneven regional growth, and logistical hurdles that complicate the deployment and maintenance of wind farms.
The supply chain is strained by the trend of manufacturing increasingly large and complex turbines, which require more sophisticated components and maintenance protocols. This trend, while improving efficiency, has introduced technical problems and has impacted project timelines. Turbine manufacturers like Siemens Gamesa have even paused sales to resolve quality issues. Rising costs due to inflation and commodity prices have further complicated the investment landscape, forcing developers and operators to be cautious in project selection and execution. Another critical issue is the uneven global distribution of new installations. While China accounted for 70% of the new capacity added in 2024, Europe and the US lagged significantly behind, making it difficult for suppliers to plan and scale their operations effectively. The lack of synchronized policy support in regions outside China exacerbates this issue, as investing in local supply chains is risky and uncertain.
Operators are also grappling with delays in acquiring replacement components, with some equipment like step-up transformers now taking up to 15 months to replace, nearly double the time needed in the past. These delays directly affect project revenues and risk project viability. Additional pressures come from new regulations such as the EU’s Corporate Sustainability Due Diligence Directive, which increases the complexity of compliance and heightens the cost of manufacturing and procurement across the chain.
Despite these issues, there are promising developments. Investments are being made in new factories and infrastructure, particularly in Europe, which has committed €11 billion to support its wind industrial strategy. The Inflation Reduction Act in the US is also stimulating domestic supply chain investments, although challenges remain in reducing dependence on imported components.
One of the most encouraging developments is the adoption of digital tools and AI. Companies are increasingly using AI-driven platforms like Shoreline to streamline planning, logistics, and operations. These technologies help anticipate supply chain bottlenecks, optimize installation schedules, and improve coordination across stakeholders. Shoreline’s AI tools, for instance, have been crucial for developers like Renova in Japan, allowing them to overcome geographical and logistical challenges efficiently.
The report concludes that while the onshore wind sector is under pressure, it is also at a turning point. Embracing AI and digital innovation offers a clear path forward to address current inefficiencies and secure long-term success in an increasingly competitive and demanding global energy landscape.
