The Global Wind Energy Council (GWEC) has released its Annual Market Update showing record increases of 10% in 2012 as well as strong growth in the industry forecast until 2017. Due to policy uncertainties, 2013 may see a slight downturn however; a strong recovery is expected in 2014 and beyond.

Global wind installations grew by 10% in 2012 with a total wind capacity of 282.5 gigawatts installed. The USA and Europe broke records last year with an increase of over 10% in new wind capacity installed. Together they contributed 44.8 gigawatts of new wind power to the global capacity.

While the USA and Europe had a great year last year, it is doubtful that they will break their record in the near future. The USA has introduced an extension on the Production Tax Credit on new wind installations which is expected to slow growth while policy uncertainties in Europe are wavering investor confidence.

In general, 2013 is forecast to be a slightly slower year in terms of new wind projects with a downturn of around 11% before a boom in 2014. On average, wind power should grow by 11% in 2014 to 2017.

“Wind power may be variable, but the greatest threat to the continued stable growth of the industry is the variability and unpredictability of the politicians who set the frameworks for the energy sector”, said Steve Sawyer, GWEC Secretary General.

However, wind power is still fighting for equality with fossil fuels and is becoming a more viable option around the world. Sawyer said, “All of the fundamentals which have driven wind power to date are still in place: energy security, price stability, local economic development, climate change mitigation and local air and water pollution issues; and wind is now competitive in an increasing number of markets.”

Wind will continue to contribute to renewable energies around the world and hopefully increase sharply over the next five years as forecast.