Wind energy is expected to make up over 30% of electricity generation in 2050 with close to 8,000 gigawatts (GW) installed compared to approximately 830 GW in 2021. This over 9 times increase in installations is a significant opportunity for the wind industry and TPI.5
Governments are enacting significant new policies to dramatically increase renewable energy and accelerate emission reduction goals. In the U.S., the Inflation Reduction Act of 2022 was passed with a historic investment in energy and climate change initiatives totaling an estimated $391 billion over 10 years. Specific incentives include the extension of the Production Tax Credit and support of U.S.-based manufacturing of wind energy components through an Advanced Manufacturing Production Tax Credit. In addition, the Infrastructure Investment and Jobs Act includes $550 billion in investments in clean energy transmission and electric vehicle infrastructure, electrifying thousands of school and transit buses and creating a new grid deployment authority to support upgrading the electric grid. The long-term commitment made by the U.S. provides policy certainty to the market and supports the growth of wind energy through the coming decade and beyond.
In response to unprecedented challenges facing the European energy supply chain, the European Commission adopted an overarching policy agenda called REPowerEU. The revised targets set by the REPowerEU initiative is intended to drive a total installed capacity for wind energy of 510 GW, up from 190 GW today.6 Aside from driving the ambitious climate change goals set by EU member countries, this projected increase in wind capacity will further the new priorities in Europe for energy independence, resiliency, and local economic development. The EU is also looking at ways to streamline the permitting process to reduce implementation time for wind projects.
Additionally, China committed to reach carbon neutrality by 2060, and India committed to increase its renewable energy capacity to 500 GW by 2030 and carbon neutrality by 2070. Wind energy continues to play an important role in achieving these ambitious goals.
TPI continues to adapt to the evolving market. We align to our customers long-term strategies, support new product introductions, and provide commercial solutions to deliver the most competitive total delivered cost. Our business model is focused on ensuring TPI remains the preferred supplier to our customers as the demand for wind energy grows.