Global Offshore Wind Demand Rising

As Global Energy Demands Grows, So Does Appetite For Offshore Wind

Ariel Cohen, March 26, 2019 (Forbes)

“…[O]ffshore wind capacity is forecast to grow by over 80 gigawatts (GW) through 2024, achieving an impressive Compound Annual Growth Rate (CAGR) of more than 25% in that period…[Market leaders include] Vestas Wind Systems, (NYSE:VWS.CO); Siemens Gamesa Renewable Energy (NYSE:SGRE); Goldwind (NYSE:XJNGF); and GE Renewable Energy (NYSE:GE)…Global wind energy capacity surpassed 600 GW in 2018 – with offshore accounting for just 23 GW of that total…[O]ffshore wind projects require longer supply chains, more complex logistics, and higher initial capital expenditures (Capex) and materials than their conventional on-shore counterparts…[But] technological breakthroughs in turbine technology and declining costs of transmission cables, offshore wind is becoming an increasingly attractive (clean) energy solution…

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…[G]lobal growth in offshore wind energy will continue to accelerate, with total installed capacity rising from 19.2 GW in 2017 to 520 GW in 2050…[and] cumulative investments in offshore wind [are forecast] to reach $350 billion by 2030 and $1.47 trillion by 2050…Britain announced that it plans to derive 30% of its electricity from offshore wind by 2030…[The US] could achieve over 20 GW by 2030 under favorable market and regulatory conditions…Offshore wind turbines are generally more efficient than their onshore counterparts…Offshore wind does not suffer from the “not in my back yard” (NIMBY) argument from state residents (and subsequent legal battles)…[and] offshore wind does not interfere with land use…Offshore turbines suffer from long, underdeveloped supply chains and high material costs…The European Union, once the front runner in offshore wind development, is now struggling to keep pace with aggressive offshore wind additions in the Far East…[Challenges remain, but] as the industry matures, economic efficiency will go up, capital costs requirements will drop, and supply chains will shrink… click here for more

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