Offshore wind energy projects final investment decisions (FIDs), outside mainland China, will grow 57% in the next 18 months, compared to the 2019-20 period, new analysis from Westwood revealed.
The growth represents an additional 20.4 GW of new power capacity with just under a third of this activity being driven by emerging offshore wind markets such as the USA, Vietnam, and South Korea.
The US government unveiled plans to bolster offshore wind farms with the aim of supplying 30 GW of energy to more than 10m homes by 2030.
Vietnam is looking at 3.4 GW offshore wind farm project from Enterprize Energy and another 3.5 GW wind farm development by Copenhagen Infrastructure Partners (CIP), Asia Petroleum Energy, and Novasia Energy.
South Korea has announced a $43bn plan to develop the world’s largest offshore wind farm by 2030. The project, which was announced by South Korean president Moon Jae-In, includes the construction of a wind farm off Sinan on the country’s southwestern coast, with estimated maximum capacity of 8.2 GW.
Thom Payne, head of offshore energy services at Westwood, said: “Even though Westwood has been analysing offshore wind since 2006, the market is still young and the construction and installation of wind farms has benefitted from lower oil and gas supply chain prices, as a result of weaker oil and gas demand. This has enabled the growth in offshore wind by making it easier to access shared services cost efficiently.”
Payne believes that as prices rise, developers will struggle to compete, especially as offshore wind projects become more complex and require more intricate engineering, equipment and vessels.
Fearnley Offshore Supply’s latest report sees great potential for highend subsea vessels in offshore wind, estimating that a lot of the large-capacity subsea assets could be torn between higher demand from subsea and offshore wind developments, but also decommissioning scopes and even the emerging deepwater mineral scene.
Westwood’s analysis has been accompanied by the launch of its new WindLogix application as part of its global offshore energy intelligence interface.