Small Wind Power Market Analysis

In-depth Analysis of Small Wind Power Market Industry Landscape

Government initiatives in developing nations, including incentives and energy-saving certificates, are poised to foster the adoption of power generation from small wind turbines in the upcoming years. Additionally, stringent government regulations aimed at curbing carbon footprints, coupled with financial incentives for embracing renewable energy sources, are anticipated to propel the global small wind power market.
China, as an emerging economy, has been a proactive player in promoting small wind power since the early 1980s. The application of small wind turbines in China has evolved from rural electrification to diverse areas like city street illumination and telecom stand-alone power systems. This shift reflects the rapid development of small wind power in new application fields. The Chinese government has historically supported renewable growth through initiatives outlined in Five-Year Plans, state-backed research programs such as the 863 and 973 programs, tax incentives, feed-in tariff (FIT) schemes, and subsidies from the Renewable Energy Development Fund (REDF). The 14th Five-Year Plan, published in June 2022, outlines an ambitious target for China to generate 33% of its electricity from renewables by 2025, with an 18% target specifically for wind and solar technologies.
In the United States, the federal government introduced the Inflation Reduction Act in August 2022, a legislation significantly expanding support for renewable energy over the next decade through tax credits and other measures. Meanwhile, Indian government policies have favored the establishment of Wind Power projects, offering concessions for wind turbine components to boost the sector. To address the impact of COVID-19, the commissioning of a part of 10 MW or more capacity of wind power projects under SECI Tranche-II to Tranche-VIII has been permitted until March 31, 2023. The concessional custom duty benefit (CCDC) for various wind turbine components has also been extended until the same date based on recommendations from the Ministry of New and Renewable Energy (MNRE).
In July 2021, the European Commission proposed an increase in the bloc's renewable energy target for 2030 from 32% to 40%, which was later raised to 45% in May 2022. Many European countries have expanded their support mechanisms for renewables to meet the 2030 targets and address the energy crisis exacerbated by geopolitical events such as Russia's invasion of Ukraine.
Overall, government initiatives across the globe play a crucial role in shaping the landscape of the small wind power market. Incentives, regulations, and ambitious targets are pivotal drivers that encourage businesses and individuals to embrace small wind power solutions, contributing to the transition toward sustainable and renewable energy sources.