AsiaEuropeGreater ChinaOffshoreRenewables

Vietnam and China blow past the UK in the offshore wind stakes

More than 200 GW of new offshore wind projects have been announced since the beginning of 2020 – accounting for more than 44% of all global capacity at the pre-construction or early development phase, according to the 2020 Global Offshore Wind Annual Market Report issued this week from the Renewables Consulting Group (RCG).

New projects exceeding 500 MW in capacity were announced in Spain, Ireland, Norway, Taiwan, South Korea, Italy, Brazil and Vietnam through to early 2021.

Supply chain constraints across all regions, as well as undefined development frameworks and route to market mechanisms, will limit deployment of capacity across the sector through to 2030, the report cautions.

“The rate of deployment in the near-term should not be underestimated, however the ambition of government authorities and investors may exceed sector capability in some areas,” the study suggests.

“The ongoing maturation of technology and declining costs for offtake have inspired governments and investors to embrace offshore wind, with many authorities touting offshore wind as a cornerstone to a green economic recovery in the wake of a global recession,” commented Lee Clarke, RCG’s chief operating officer.

The report has some interesting data on global shifts in offshore wind – with Asia to the fore.

For the first time, the APAC market portfolio has surpassed the EMEA region in project development capacity. For the first time, the UK – the market leader – will lose its number one global offshore ranking by the end of the year to Vietnam and China, respectively.

Vietnam, with just 99 MW of inter-tidal capacity operational, sports a massive development pipeline of 64.9 GW. Vietnam’s early-stage development capacity is almost entirely comprised of projects proposed under the recent national power development plan.

China, which has 8.5 GW of offshore wind operational and 30.2 GW under development – is in second place with a total portfolio of 63.6 GW.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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