Offshore wind market to exceed 60 GW by 2024



According to a new research report by the market research and strategy consulting firm, Global Market Insights, the offshore wind market will exceed 60 GW by 2024. Increasing measures to reduce the greenhouse gas emission along with growing electricity demand will significantly drive the global offshore wind market size. In 2016, the member countries of the European Union announced their plan to achieve 21% renewable energy targets by 2020 and concurrently reducing greenhouse gas (GHG) emissions to 26% from the 1990 level.

Rising investment towards the development of clean energy sources from financial institutions including International Finance Corporation (IFC), Asian Development Bank (ADB) and the World Bank will upsurge the market share. The Government of UK has established the Offshore Wind Investment Organisation (OWIO) to promote investments towards sustainable energy resource integration. The country has further acknowledged the green investment bank to raise and circulate funds across clean energy projects.

UK offshore wind market will witness strong growth subject to favorable government measures to support the development of sustainable technologies. Regulators have introduced contracts for difference to ensure long term stable revenues from electrical infrastructure projects across the country. The reform further lays provisions to ascertain viable returns to investors along with encouraging investments through leveraging schemes.

Fig. 1: Global offshore wind market, by region, 2016 (Cumulative Capex, US$ billion).

High-end research initiatives to cater to the competitive energy industry through efficient and cost-effective technology will drive the market size. In 2017, German Federal Network Agency launched an offshore wind tender for 1,5 GW to lower the generation tariff. The government of Netherlands is also targeting to reduce the overall cost by 40% over the next decade. In 2017, Siemens and Statoil in collaboration have established a 30 MW floating wind farm across Norway under the “Hywind Scotland” project.

Wires and cables in 2016 accounted for over 2% of the offshore wind market revenue share. Expanding microgrid networks favored by advancing distributed generation technology will embellish the business landscape. In 2016, Belgium’s Tideway awarded US$14,1-million contract to Prysmian for supplying 33 kV inter array submarine cables for a 309 MW power project.

China market is set to expand to over 12 GW by 2024. Clean energy capacity addition target accompanied by exponentially rising energy demand will uplift the industry size. Increasing government aided funds coupled with asset and financial leveraging facilities towards development of sustainable energy projects will further stimulate the business outlook. In 2017, State Power Investment Corporation announced its plan to develop 800 MW wind farm across coast of Yancheng and Jiangsu.

Fig. 2: Offshore wind industry background.

Favorable government polices coupled with increasing investments towards the expansion and enhancement of sustainable energy will foster the U.S. offshore wind market. The National Ocean Industries Association (NOIA) in 2017, have established the country’s first offshore wind farm.

Key players across the offshore wind market include Doosan Heavy Industries & Construction, Adwen, MHI vestas, Senvion, Sinovel Wind, and Siemens.

Contact Global Market Insights, sales@gminsights.com

 

 

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