Global Offshore Wind Market Grows 30%
The global offshore wind market grew nearly 30% per year between 2010 and 2018, benefiting from rapid technology improvements and about 150 new offshore wind projects are in active development around the world.
Europe in particular has fostered the technology’s development, led by the United Kingdom, Germany and Denmark, but China added more capacity than any other country in 2018, says 'Offshore Wind Outlook 2019', a report funded by the governments of Denmark and Germany.
Yet today's offshore wind market doesn't even come close to tapping the full potential – with high-quality resources available in most major markets, offshore wind has the potential to generate more than 420 000 TWh per year worldwide.
This is more than 18 times global electricity demand today.
The growth of the offshore wind industry has been fostered in European countries bordering the North Seas, where high quality wind resources and relatively shallow water have provided exceptionally good conditions in which to develop offshore wind technologies and bring them to market.
Policy support has helped the European Union reach nearly 20 GW of offshore wind capacity by the end of 2018.
Offshore wind is set for robust growth in the EU, with current policies aiming to multiply offshore wind capacity by 4 over the next decade.
Alongside Europe, China has taken strides forward on offshore wind and now stands among the market leaders. In 2018, China added 1.6 GW of offshore wind capacity, the most of any country.
The global offshore wind market is set to expand significantly over the next two decades, growing by 13% per year in the Stated Policies Scenario. Bolstered by policy targets and falling technology costs, global offshore wind capacity is projected to increase fifteen-fold to 2040, becoming a $1 trillion industry over the next two decades - matching capital spending on gas- and coal-fired capacity over the same period. This level of investment means that offshore wind accounts for 10% of investment in renewables-based power plants globally.
Europe remains the technology leader to 2040, but China closes the gap spurred by recent efforts to expand their construction capacities for offshore wind. In the United States, state-level targets set the course for rapid growth over the next decade.
India, Korea and Chinese Taipei also have ambitious targets, while other countries, including Japan and Canada, are laying the groundwork for future offshore wind development.