Offshore Wind Energy Installed Capacity to Reach 52,120.9 MW by 2022 owing to Favourable Regulatory Environment across Europe

The growing focus on renewable energy and the advantages offered by offshore wind energy over its onshore counterpart have led to greater installations of offshore wind energy. Favourable regulatory framework, incentives, and investments by key market players have further supported the market’s growth. The global installed capacity in the offshore wind energy market is anticipated to expand at a CAGR of 25% during the period between 2014 and 2022 to reach 52,120.9 MW by 2022.

How is the offshore wind energy market in Europe shaping up?

In Europe, countries such as the U.K., France, Germany, Netherlands, and Denmark are the pioneers in the offshore wind energy market and hence, Europe is the largest market for offshore wind energy. In 2013, the region reported 1,567 MW of new capacity additions in the offshore wind energy market. Germany holds about 30% of the consented offshore wind farms in Europe and has emerged as one of the leading offshore wind energy markets.

Due to the new Energy Act of 2013 and Electricity Market Reform Package, the U.K. has been the prominent market for offshore wind energy. Changes in subsidy and uncertainty over Britain’s vote to leave the European Union have spelled long shadows over the growth of the domestic offshore wind industry. Investors are worried regarding future incentives and export duties that would impact the growth of the offshore wind market in the country. 

Research Report: http://www.transparencymarketresearch.com/offshore-wind-energy-market.html

According to the Renewable UK, Britain’s renewable energy industry body, the offshore wind market in Britain is expected to reach a valuation of US$27 bn during the period between 2010 and 2020. Currently, Britain has a capacity of over 5 GW whereas Germany has 3.4 GW of installed capacity. However, in the aftermath of the recent events, offshore wind energy projects in Britain are being delayed. For example, Siemens is reconsidering plans to expand its manufacturing plant in the port of Hull across northeast of England.

Why are the key players in global offshore wind energy market focussing on Asia Pacific?

Some of the major players in the global offshore wind energy market are Nordex, Suzlon, China Ming Yang Wind Power, Dong Energy, Sinovel Win, Gamesa, Vestas, GE Wind Energy, and Siemens. Though Europe is the leading region in the market, the key players are channelizing their efforts in expanding their business across Asia Pacific. The developing countries in Asia Pacific are registering an ever increasing demand for electricity and the offshore wind energy market has immense potential to grow across the region.

Presently, China is the only country with separate target allotment regarding offshore wind energy installations. The country has over 18,000 sea miles of coastline and hence, offers broad development opportunities for offshore wind projects. Companies are establishing joint ventures to tap on the opportunities in the China offshore wind energy market. For example, Singapore-based Ezion Holdings Ltd. has partnered with Sinotrans & CSC Holdings Co. Ltd. to support offshore wind power installation projects in China.

Active Role of U.S. Government and Technological Advancements to Bolster Position of U.S. in Global Offshore Wind Energy Generation Market

The Global Wind Energy Council, an international trade association for the global management of wind power, states that the potential of offshore wind is so enormous that by properly harnessing it, the energy demands of the U.S. could be met four times over and that of Europe seven times over. The consistent, strong, and abundant winds off lengthy coastlines of several countries form a renewable energy resource of such potential that it can very well be captured to generate affordable electricity for domestic consumption, decrease the overall greenhouse gas emissions around the globe, and diversify the energy supply goals of struggling economies.

A report by Transparency Market Research projects that the global offshore wind power will expand at an exponential 25.0% CAGR over the period between 2014 and 2022. Europe currently dominates the market, representing over 90% of the world’s total installed offshore wind capacity. However, the U.S. market for offshore wind energy generation is also making advancements at a rapid pace and is expected to come up as a lucrative ground for investment in the next few years.

Research Report: http://www.transparencymarketresearch.com/offshore-wind-energy-market.html

Immense Growth Potential in the U.S.

The United States has excellent offshore wind resources and the government is taking an active part in realistically developing the sector by lending financial and regulatory support to private, public, and non-profit efforts aimed at the research, development, and deployment of offshore wind technologies that could effectively harness this power source with immense potential. Although the United States has more installed onshore wind turbine power generating capacity than most other countries active in the sector, it currently has no major offshore wind turbines installed. However, government efforts and rising public awareness regarding the immense benefits of offshore wind energy, in terms of it being an emission-free resource and having the potential to provide electricity at affordable costs (which is expected to be the reality as technologies advance in the field), are changing the scenario at a favorable pace.

The U.S. Department of Energy (DoE) has awarded funds totaling over US$200 mn since 2011 for several competitive offshore wind power projects. The funds are majorly focused on three areas: demonstration of advanced technology, market acceleration, and technology development.

Technological Advancements to Make Market More Mature

As technical challenges surrounding the operation, installation, grid interconnection, and maintenance are some of the most prominent limiting factors for the overall development of the global offshore wind energy market, the vast funds being allotted to technology research in the field are justifiable.

A large proportion of global offshore wind resources are located in areas with deep water, where building conventional foundations is not practical owing to the depth of the water. To overcome this issue, companies have come up with innovative floating wind platforms made especially for deep waters. To overcome the several issues that come with the issue of the added efforts needed for maintaining machinery and power generation equipment, as it has greater potential for corrosion from exposure to seawater than on land, companies are also looking into ways to design offshore wind turbines that will more robustly suit these special environmental specifications.   

Research Press Release: http://www.transparencymarketresearch.com/pressrelease/global-offshore-wind-energy-market.htm