No results found. Please try again.


Renewable Energy: Wherever the Wind Blows

The world’s transition away from fossil fuels toward renewable energy is encouraging, led by a growing supply of renewable energy sourced from hydro, solar and wind. As countries pursue carbon neutrality over the coming decades—with the EU and US aiming for carbon neutrality by 2050 and China targeting zero carbon emissions by 2060—we believe wind power could emerge as a strong growth segment within the renewable energy space.

The Carbon Neutral Era is Here: What’s Next?

International coordination among large emission-emitting countries and pressing policy targets have provided a significant number of opportunities in renewable energy, particularly in wind-generated power. As countries race to build more capacity to source electricity from these alternative energy sources, we believe wind power is set play a crucial role in the global renewable energy mix.

Global developments on harnessing wind as an alternate energy source has on the whole been quite positive, with offshore wind procurement in the US, plans to increase wind farm capacity in Europe, along with better-than-expected clean energy project procurement efforts from China in 2021. Notably, China’s latest renewable energy project unveiled at the UN biodiversity event in October 2021 is set to rival all the wind and solar power in India.1

While wind power comes naturally and is emission free, harnessing the wind’s kinetic energy is not as simple as planting wind turbines in areas subject to gale-force winds. Each renewable energy source has its own specific geographical requirements, so countries have to pursue different paths. For instance, large-scale wind and solar farms require acres of flat land, high levels of wind and sunshine and coast lines for offshore wind farms—all crucial factors when countries consider how they will reach carbon neutrality. Wind turbine installation and operation is supported by many top global players such as Vestas, General Electric, Siemens and a global supply chain.

Overall, wind-generated energy is a well-established operation that has grown 17% by 275 terawatt-hours (TWh), significantly higher than 2020 levels.2 It is expected that for the remainder of 2021, China and the United States will generate 600 TWh and 400 TWh respectively, representing more than half of global wind output.3

Despite “Free” Source, Cost Inflation Brings Challenges

Offshore wind farms are not too dissimilar to land-based wind farms, and can often generate more energy since offshore wind speeds tend to be faster than on land. Proximity to a main power grid can often mean shorter transmission times too.4

However wind farms are becoming increasingly complex. As countries expand offshore wind farms and wind turbines increase in size to meet electricity demand, there is a growing demand for raw materials and a need for the global supply chain to support and source the relevant components. Any raw material price inflation, higher shipping costs and supply chain tightness could lead to margin pressures or production disruption. Increased demand also poses logistic challenges involved with transporting bulky support structures, rotator blades and a multi-ton base that is often made from concrete or steel.

A global, coherent effort in clean energy and therefore wind installation puts pressure on component suppliers, since demand surpasses the supply of components and leads to cost inflation pressures. And, unlike solar or distributed solar projects, wind schemes typically require a longer deployment period which include obtaining various approvals, the availability of skilled workers and installation.5

Technological Innovation an Essential Driver for Industry Growth

Renewable energy has evolved. Most recently, we’ve observed an industry-wide effort to build larger-scale wind turbines to meet electricity demand. For example, China is aiming to install 5-6 megawatt (MW) wind turbines, building upon existing technology that could previously process 3MW. With new developments in wind turbine technology it is now possible to produce twice the output at a higher cost of 1.5-1.6 times the raw material input. While component supply can often be considered as a global effort, China’s home-grown efforts to localise and develop its own wind turbine components could also bring cost-competitive advantages, in our view. Despite the headwinds the industry faces with cost inflation, we’ve seen a gradual shift towards the localization of wind turbine component production to keep supply chain costs low from a project profitability lens. Turbine installations are sourced locally from a strong logistics connection and a supply of skilled workers.

With demand for offshore wind technology driving innovation, firms are developing and installing larger, floating wind turbines that deliver optimal power production. These turbines are designed to float in the water as a semi-submersible turbine or as a buoy, where sea levels are too deep to install a fixed, grounded base.

Why It Matters Wind Power is Achieving Grid Parity

The completion of China’s onshore wind turbine subsidy program last year was a positive development costs associated with installation and turbine manufacturing. The carbon trading green certificate scheme has provided much support for the wind industry.

As demand for project installations rise, the country’s progress in wind project procurements in 2021 was a positive development for onshore wind power projects, some of which had achieved grid parity.

Alternative energy generated at a levelized cost of electricity that’s equal to, or less than the price of buying power from the electric grid is a crucial step as renewables become equally-priced competitors to traditional fossil fuels.

Ultimately, this achievement strengths the debate over renewable energy that has often been cited as “unaffordable”, and widens the gap between wind-generated power and traditional energy, on the back of the increased coal prices in China, along with the inflated gas prices in Europe.

Staying Ahead with Mirae Asset’s Latest Insights

Mirae Asset Global Investments adheres to a strictPrivacy Policygoverning the handling of your information and subscribers can opt-out per their preference.

1 Source: Bloomberg, China’s New Renewable Project Rivals All Wind and Solar in India, October 2021.
2 Source: International Energy Agency, Global Energy Review 2021, April 2021.
3 Ibid.
4 Source: Bureau of Ocean Energy Management, December 2021.
5 Source: Morgan Stanley, Higher Wind Capacity Forecasts, July 2021.

Disclaimer & Information for Investors

No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.

The Company’s Prospectus and the KIIDs can be obtained from . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.

A summary of investor rights is available in English from

The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.

Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Copyright 2021. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.


  • Unit 1101, 11/F, Lee Garden Three, 1 Sunning Road, Hong Kong


  • 2295 1500

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this website should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this website is prepared and maintained by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.