This study presents a comprehensive simulation approach to quantify power losses in horizontal axis wind turbines under environmental icing conditions. It investigates how wind shear and turbulence affect a 2.5 MW wind turbine's performance, particularly under ice accretion. Turbulence intensity, ranging from 1% to 20%, impacts the relative flow fluctuations and angle of attack on the blade sections, influencing the aerodynamic penalty ratio. The incoming wind speed and the flow angle at various blade sections were determined using the unsteady blade element momentum method, considering vortex induction effects and Prandtl and Glauert corrections. For ice accretion analysis, a fully unsteady simulation of computational grid motion due to ice accretion was performed, along with the solution of the multiphase flow of water dispersed particles in cold air, derived from the psychrometric chart. The findings highlight the significant impact of the incoming turbulent wind fluctuations on the dispersion of the ice shape formed at sections corresponding to their radial position on the blade according to the momentary angle of attack fluctuations. The formation of ice profiles along the blade has led to a subsequent degradation in the aerodynamic efficiency of the blade sections, which is directly proportional to the escalation in turbulence intensity. This phenomenon leads to a continual reduction in the power output of the wind turbine. This research provides valuable insights into the performance of wind turbines under icing conditions in real wind fluctuations.