GLOBAL FLOATING WIND ENERGY MARKET & FORECAST

Volume 2

(2019 – 2034)

 

EXECUTIVE SUMMARY

  • Renewable energy is the fastest-growing energy source, accounting for 40% of the increase in primary energy. The energy mix by 2040 is the most diversified the world has ever seen.

  • Renewables led by wind, offshore wind and solar are growing exponentially and delivering bigger capacities and cheaper economic solutions.

  • Cheap renewable energy and batteries are remaking electricity systems globally and will take a growing share of power generation from fossil fuels which could reach parity by 2050. Modern natural gas power plants can provide the flexibility needed to integrate more renewables into the grid.

  • Wind energy is a growing form of cheaper energy supply in many markets. In 2018, according to the Global Wind Energy Council, wind capacity installations outpaced new fossil fuel capacity in a number of mature and emerging markets.

  • The global energy transition to a lower carbon footprint presents many opportunities across industries to tackle new challenges through innovation and applied technology.

  • Advanced technology will continue to be an enabler for wind energy. Digitalization shows great potential for its ability to transform the power sector by offering demand-side flexibility including opportunities to integrate power sources. Digital technologies can also aid-in reduced TotEx and drive lower operation and maintenance costs in wind parks.

  • Projections for onshore wind indicate over 50 GW of installed wind capacity on an annual basis in addition to more than 6 to 10 GW of offshore wind capacity additions each year.

  • The wind industry continues to deliver value to enhance wind’s cost competitiveness and efficiency with steady improvements in the Levelized Cost of Electricity (LCoE). Since 2016, offshore wind particularly has pushed reductions in LCoE in excess of 50%.

  • The top five onshore wind markets delivered 75% of new capacity in 2018 (China, USA, Germany, India and Brazil). Ninety-one percent of new offshore wind installations were led from China, United Kingdom, and Germany during 2018.

  • The IEA’s World Energy Outlook sees increased spending on offshore wind power projects through 2040 benefiting in part from the decline in offshore oil investments in the Sustainable Development Scenario.

  • Offshore globally, there are more than 1.4 GW of offshore wind auctions Planned in 2019 following a strong showing of 3.3 GW in 2018.

  • Quest projects that more than 16 GW of Floating Offshore Wind will be installed worldwide to 2030.

  • State incentives are a driver for offshore floating wind as both California and Hawaii have targets to reach 100% renewable energy generation by 2045.

  • Off the Eastern seaboard, BOEM is processing three Construction And Operations Plans (COPs) for offshore fixed wind which are Vineyard Wind, Deepwater Wind South Fork and Bay Sate Wind. Eight additional COPs are expected to be submitted to BOEM over the next 12 months.

  • Equinor’s New Energy Solutions have more than 5 GW of offshore wind projects in the development pipeline offshore the US Atlantic.

  • New York state expanded its renewables policy goals to reach 70% renewable energy by 2030. New York intends to install 9,000 MW of offshore wind by 2035 – enough to power six million homes.

  • The Offshore Floating Wind industry was in its infancy only five years ago, an ‘inner circle’ that met more naysayers than believers. This industry has come a very long way in just a few years delivering new floater designs, scaled demonstrators, pre-commercial projects and new players. The entry of companies such as Equinor, Repsol, SBM, Aker Solutions and most recently Shell has led to a step-change for this young industry’s viability and ultimate capability to produce 50 or 100 Floating Turbine Units (FTUs) on a serial manufacturing basis.

  • Offshore wind energy is quickly becoming a relevant adjacent industrial sector to offshore oil and gas for numerous supply chain companies. Their advanced engineering capabilities, project management skills and technology solutions will be required to meet rapid demand growth over the next decade.

  • Offshore Floating Wind Energy is a fast-moving market. Europe has been the ‘test bed’ for floating wind and the success of these projects will drive export of this technology to the USA and Asia well before 2025. The view towards large scale projects aided with ample financial backing will help to drive efficiencies and lead to significantly reduced costs.  We see this trend in turn making European projects more feasible buoyed by additional government support of long-term Floating Wind Energy developments.