China is the engine of this wind power boom, with its onshore sector expected to contribute over 70 GW in the final quarter of 2025 alone. This surge stems from soaring electricity demand, particularly from data centers and electrification initiatives. The country’s focus on clean energy has slashed fossil fuel use, with wind and solar generating more electricity than hydro, nuclear, and bioenergy combined in the 12 months to June 2025. China’s $625 billion investment in clean energy in 2024, accounting for 31% of the global total, underscores its commitment to scaling renewables.
This rapid growth is reshaping global markets. China produces 60% of the world’s wind turbines and files three-quarters of clean energy patents, driving down costs and enabling emerging economies to adopt wind power. However, challenges like grid strain and renewable curtailment persist, as northern and western regions struggle to transmit surplus power to coastal demand centers.
Global Expansion Beyond China
Outside China, wind power is growing steadily, though at a slower pace. Europe, Asia Pacific, and emerging markets like India and Brazil are adding capacity, with global onshore installations surpassing 100 GW in 2023. The Asia-Pacific region, led by China, saw a 106% year-on-year increase in installations, while Latin America grew by 21%, driven by Brazil. Africa and the Middle East reported a 182% surge in wind installations, signaling broader adoption.
Offshore wind, however, faces hurdles. High costs and failed tenders have slowed progress in Europe, with delays also affecting emerging markets. Policymakers are under pressure to reform contract structures to keep projects viable. Despite these challenges, the global wind industry is projected to add 1,210 GW by 2030, with offshore wind expected to account for 26% of new capacity over the next decade.
Policy Shifts and Market Challenges
Policy changes are shaping the wind industry’s trajectory. In the U.S., the One Big Beautiful Bill Act (OBBBA), passed in July 2025, ends tax credits after 2027, spurring a short-term rush of projects but dimming long-term prospects. This has dropped the U.S. behind India and Germany in forecasted 10-year additions. The Trump administration’s hostility toward offshore wind, including a January 2025 executive order halting leasing, further complicates growth, especially as U.S. grid demands rise with climate change and data center expansion.
Globally, policy uncertainty and economic headwinds challenge established markets. Yet, the industry’s resilience is evident, with solar and wind making up 91% of new U.S. power capacity in the first half of 2025. Emerging economies, bolstered by China’s affordable turbine exports, are leapfrogging to clean energy, reducing reliance on fossil fuels.
Technological and Economic Impacts
Advancements in turbine technology are key to wind’s growth. China’s Dongfang Electric recently installed a 26-megawatt offshore turbine, the world’s most powerful, showcasing the industry’s push for efficiency. Lower turbine prices—down 30% in 2023—make wind power more accessible, particularly in cost-sensitive markets. These savings stem from China’s economies of scale and competitive supply chains, with state-backed loans and subsidies further reducing costs.
The economic ripple effects are significant. Wind power’s expansion creates jobs and supports energy independence, particularly in emerging markets. However, grid integration remains a hurdle. China’s reliance on coal to stabilize intermittent wind output highlights the need for better storage and transmission solutions, such as ultra-high-voltage lines, to fully harness renewable potential.
Environmental and Global Implications
Wind power’s growth is a cornerstone of global decarbonization. In China, clean energy met 84% of electricity demand growth in 2024, cutting fossil fuel generation by 2% in the first half of 2025. Globally, renewables and nuclear provided 40.9% of electricity in 2024, a milestone not seen since the 1940s. This shift is reducing CO2 emissions, with China’s emissions falling 1% in the first half of 2025, potentially signaling a peak ahead of its 2030 target.
The decline in fossil fuel demand, driven by China’s clean tech exports, is reshaping global energy markets. Emerging economies, benefiting from cheaper turbines, are bypassing fossil fuel infrastructure, accelerating the transition to renewables. However, heatwave-driven demand spikes in 2024 temporarily increased fossil generation, underscoring the need for robust grid systems to sustain clean energy gains.
The Road to 2 Terawatts
The wind industry’s path to 2 TW by 2030 is a testament to its rapid evolution, but success hinges on navigating policy and technical challenges. China’s dominance, while a catalyst, highlights the need for diversified growth to ensure global stability. As the industry prepares for a record-breaking 2025, innovations in turbine design, grid infrastructure, and storage will be critical to maintaining momentum.
This Friday’s release of new wind projects and policy updates will further illuminate the sector’s trajectory. For now, the global wind industry stands at a pivotal moment, with China’s surge setting the pace for a cleaner, more sustainable energy future.
