Europe to Account for More Than Half of Global Investments, Says Consultancy
Investments in the global offshore wind industry are slated to more than double from US$46 billion in 2021 to US$102 billion in 2030, according to Oslo-based Rystad Energy.
The biggest surge will happen in Europe, already the global leader in offshore wind, with spending in the region expected to reach close to US$53 billion in 2030 compared with US$15 billion last year.
According to Rystad, Europe’s 26 gigawatts of operational capacity accounts for more than half of the world’s total. Some 57 GW are expected to come online by 2026, with Danish operator Orsted to remain the region’s leading offshore developer.
More than 8,500 turbines are slated to be operational by year-end 2026, of which almost 60 percent are likely to be produced by Siemens Gamesa. Vestas will contribute to about 20 percent of the installed base, Rystad said.
“As the world moves towards a greener energy mix, investments in the offshore wind sector are set to soar and provide ample opportunities for suppliers to cash in,” said Anubhav Venkatesh, offshore wind analyst at Rystad Energy.
Investment in US offshore wind, for years hampered by problems linked to leasing and permitting, is projected to hit US$3.3 billion this year, rising to US$15 billion by 2030. Last year spending stood at US$700 million.
The Biden-Harris administration has fired up the development of offshore wind in the US, giving the go-ahead to two commercial-scale wind projects off the east coast and unveiling a new leasing strategy for the Interior Department to hold up to seven offshore wind auctions by 2025.
Still, the country is likely to fall short of its target of 30 GW of operational capacity by the end of the decade, Rystad said, with capacity expected to reach 21 GW instead amid supply chain issues and an immature market.
"Ports and grids need to be upgraded, and a domestic value chain needs to be established," Venkatesh told Breakbulk. "Although projects are expected to receive approvals from next year onwards, a large part of this capacity is expected to start offshore construction post 2024-25."
China’s investments meanwhile are set to slacken towards the end of the decade to a comparatively low US$7.7 billion, mainly due to feed-in tariffs that encouraged the phase out of infrastructure investments in 2021 and emerging market dynamics that will result in lower costs for any new capacity additions in the region.
Worldwide, more than 265 GW of operational capacity is estimated by 2030.
The development of offshore wind in the US is set to be a hot topic at Breakbulk Americas 2022, taking place on 27-29 September at the George R. Brown Convention Centre, Houston.
Click the registration link below by July 15 to qualify for the early bird rate.
