Offshore Wind Update: Global Cumulative Capacity to Reach over 100 GW by 2026.
2017 has represented a positive year for the offshore wind industry, according to the latest edition of Westwood’s World Offshore Wind Market Forecast. The industry is rapidly maturing, and the market developments seen over the last year have resulted in Westwood forecasting a more positive outlook, with global cumulative capacity to exceed 100 GW by 2026 (~20% uplift on last year’s report).
Zero subsidy bids for 3 German wind farms were approved in April, while the world’s first full-scale floating wind farm commenced operations in October 2017. September’s contract for difference (CfD) auction in the UK, saw projects securing strike prices as low as £57.50/MWh (compared with an average of £117/MWh, February 2015). Dong rebranded to Ørsted and entered new frontiers such as Taiwan, where the company signed an MOU for the 2 GW Changhua project.
Cumulative Capacity by Country, 2016-2026
- Total Capex over 2017-2026 is expected to amount to almost €444
- Global cumulative capacity is expected to increase from 1 GW in 2017 to 102.7 GW by 2026*.
- The UK, China, and Germany will be the key contributors to the market, with combined expenditure of €214bn over 2017-2026. This represents approximately 48% of forecast global expenditure over the same period*.
- Global Opex over 2017-2026 is expected to amount to €70bn, with approximately 61% of this allocated to China, Germany, and the UK*.
- Westwood expects more than 16,100 turbines and more than 18,000 foundations to be installed over 2017-2026.
- Cables will represent the largest installation segment, with ~46,000km required over the next ten years.
*All figures are inclusive of projects yet to develop past conceptual phases.
Westwood’s report features an in-depth Capex analysis, including component breakdown and country-specific commentary, reflecting on announced renewables obligations. Tracking the industry on a project by project basis, Westwood offers a comprehensive view on the significant opportunities for the wind supply chain over the next decade. Given the increased focus on renewables, the industry will continue to attract investment from utilities and large engineering and service contractors, as well as upstream oil and gas companies.
- Key Drivers and Indicators
- Global to Country Capex and Opex Market Forecasts
- Segment Market Forecasts
- Project Listings
For a detail contents page and to access the report today, please contact:
Gareth Hector or call +44 (0)1795 594 726