Rise of a Global Titan
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21 NOVEMBER 2019 n WWW.RENEWS.BIZ GLOBAL OFFSHORE WIND REPORT 2019 Rise of a global titan Proudly supporting offshore wind energy development since 2004. Click to see how our Lidars are used for fixed and floating wind measurements. CONTENTS 21 November 2019 GLOBAL OFFSHORE 02 UK 04–13 Global simmer n UK lets the good times roll comes to boil NEW MARKETS: FAST DELIVERY: n CfD3 champs fix details Ben Backwell Gunnar Herzig n UK suppliers bruised by price squeeze he offshore wind industry is Photo: GWEC Photo: WFO n East coast brace set the pace poised for explosive global Tgrowth at previously unthinkable recent policy uncertainty, while the levels thanks to strong policy backing Dutch market turns to delivery next GERMANY 14–20 by governments and an ever-maturing year on its 11.5GW target and France Record numbers of development and supply chain finally puts steel in the water after community. many years of broken promises. projects, a maturing Around 29GW of total capacity will Nevertheless, it is the globalisation be spinning by the year-end on the of the sector that will unlock sector and confident back of a 5.7GW construction surge unprecedented levels of growth, that will wrap up shortly, boosting according to GWEC chief executive n Agencies need milestones new players herald an the 23GW that was online around the Ben Backwell and World Forum n Grid expansion priority focus world at the end of 2018. Offshore Wind managing director n Swell from North Sea surge era of unprecedented Next year is shaping up to be a Gunnar Herzig (pictured). n Developers mulling contracts similar build-out for the sector with Delivery is underway in Taiwan, growth, writes 5.4GW under starter’s orders, which where 5.5GW is expected online TAIWAN/AMERICAS 22–30 will see installed capacity breach the by 2025 and the government has Stephen Dunne 30GW ceiling. promised a further 10GW by 2035. Figures compiled by reNEWS show Herzig said the pace of development 2020 will be followed by a relatively there shows how quickly offshore can modest 3.8GW in 2021 before 7.6GW deliver if a clear and stable regulatory and 8.2GW builds come together in regime is put in place. 2022 and 2023, respectively. The US is meanwhile coming to n Taiwan lines up in the big league That upward trend will continue the boil with the first large-scale n Developers at odds over bid details beyond 2023 when offshore wind projects moving closer to financial n Permit scares sour US feast will experience a step change in close despite a permitting delay that n Beacons lit for star east coast ports construction rates, potentially has reared its head in recent months. reaching up to 20GW per year, to hit Developers are confident of delivering FRANCE/BENELUX 31–43 a projected 190GW global target by 5.6GW by end-2025. 2030, according to the Global Wind Policy momentum is also building Energy Council. behind the industry in several new More ambitious government targets markets like Poland, Japan, Ireland, for 2030, already on show with a India, Turkey and Brazil. Backwell beefed-up 20GW goal in Germany and pointed to other areas where 30GW agenda in the UK, and markets developers are seriously looking n France opens for business hitting delivery mode like the US at potentially new acreage such as n Dunkirk bid price signals sea change and Taiwan, as well as a huge uptick South Africa, Chile, the Philippines and n Dutch wheels are turning once more expected in China, will all contribute. Indonesia. n Belgian timelines under pressure The caveat is that this is GWEC’s Despite the optimism, global growth business as usual scenario. The is not yet an absolute banker as there NORDICS/IRELAND/BALTICS 44–51 sector could hit 200GW of installed are still challenges to overcome. capacity by 2030, based on even more Further policy certainty is required ambition from policy makers in both to smooth the development path, existing and new markets as well as said Herzig. The year has seen the emergence of floating offshore developer confidence knocked by wind at scale. Looking further ahead, the unexpected feed-in rate cut in the International Energy Agency Taiwan and the US Department of n Red tape strangling Danish ambition predicts 342GW by 2040. the Interior’s decision to widen an n Polish runners approach the start line For now, the established markets environmental review of the 800MW n Big names speed to Ireland waters will lead the surge. The UK will retain Vineyard Wind farm to all proposed n Norwegians bound by local inertia its billing as the global heavyweight – east coast sites. in the near-term at least – thanks to Backwell also cited the Taiwanese ASIA/SOUTH AMERICA 53–61 strong growth prospects, government issue to warn that governments in less support and recent dramatic price mature markets must not think they n Support mechanisms key to unlocking cuts in Contracts for Difference can get offshore wind on the cheap on Indian tender auctions that have effectively put the the back of the cost-cutting drive. n Star of the South angling for “massive” market on a subsidy-free footing. “It is a challenge for us to make Bass Strait project China is beginning to threaten the sure that people are being realistic,” n Brazil roadmap key to future UK’s crown, with predictions that on he said. n Chinese firms drive rapid advance the back of recent strong growth it will The wider economics of offshore n Vietnam auctions to woo developers soon become a 6GW-a-year market. wind are also being questioned. There n Japan aims for top league The other powerhouse, Germany, is still a way to go to renews.biz looks set to get back on track after deliver promised zero- FRONT PIC: East Anglia 1 SPR 03 21 November 2019 GLOBAL OFFSHORE 03 subsidy wind farms, PRESSURE with the same quality is one of the However, the recent progress of 02 and with margins POINT: major tasks,” he stressed. the sector is likely to see offshore already tight only Andreas In addition, developers are wind continue to grow despite the Nauen companies with global scale will be grappling with strict local content challenges. Nauen highlighted how Photo: Siemens Gamesa able to survive, according to experts. rules that come hand in glove with Siemens Gamesa is close to installing Siemens Gamesa offshore chief new markets. Backwell warned that its one-thousandth turbine. executive Andreas Nauen (pictured) localisation requirements in some “There is no fuss. Years ago we said there is “huge pressure” to deliver markets are potentially regressive. would celebrate – every turbine was projects in new markets at the rock- “I do think some governments worth a party. Now it is a project.” bottom prices of mature markets, the push to cut costs, will also not are getting a bit carried away. There “[The sector] has come a long way. although the latter have had years of find it easy to ramp up to meet the will be job creation and localisation We have to make sure that everyone development to bring costs down. international delivery surge, he added. of the supply chain, but we do not stays reasonably profitable; that we The offshore wind supply chain, “Whether they can grow at the think there should be these stringent don’t overheat and find ourselves in a which is already under pressure with same speed into the same countries obligatory requirements.” difficult situation,” he concluded.n GLOBAL CONSTRUCTION CALENDAR Installed or due online 2019 Scheduled in 2021 (continued) Project, country MW Developer Turbine Project, country MW Developer Turbine Beatrice, UK 588 SSE Renewables Siemens Gamesa 7MW Provence Grand Large, France 24 EDF Renewables Siemens Gamesa 8MW Hornsea 1, UK 1218 Orsted Siemens Gamesa 7MW Fryslân, Netherlands 382 Ventolines Siemens Gamesa 4.3MW Albatros, Germany 112 EnBW Siemens Gamesa 7MW Kriegers Flak, Denmark 600 Vattenfall Siemens Gamesa 8.4MW Arkona, Germany 385 RWE, Equinor Siemens Gamesa 6.45MW Taranto, Italy 30 Renexia tbc Deutsche Bucht, Germany 269 Northland Power MHI Vestas 8.4MW Bac Lieu wind farm 3, Vietnam 142 Cong Ly GE Hohe See, Germany 497 EnBW Siemens Gamesa 7MW Dong Hai 1, Vietnam 50 Bac Phuong Energy tbc Merkur, Germany 396 Merkur Offshore GE 6MW TOTAL 3796MW CTG Jiangsu Dafeng, China 300 China Three Gorges Goldwind Dalian Zhuanghe, China 300 China Three Gorges Goldwind On the books for 2022 Dongtai Four 2, China 300 Shenhua Sewind & Envision 4MW Hornsea 2, UK 1386 Orsted Siemens Gamesa 8MW Putian City, China 250 Fujian Invest Sewind 6MW Triton Knoll, UK 860 Innogy MHI Vestas 9.5MW Tianjin Nangang, China 90 Sinohydro Siemens Gamesa 5MW Kaskasi, Germany 325 Innogy Siemens Gamesa 9MW Formosa 1 Phase 2, Taiwan 120 Orsted, Swancor Siemens Gamesa 6MW Changhua 1 (Southeast), Taiwan 605 Orsted Siemens Gamesa 8MW Changhua 2 (Southwest) Horns Rev 3, Denmark 407 Vattenfall MHI Vestas 8MW 295 Orsted Siemens Gamesa 8MW Phase 1, Taiwan Norther, Belgium 370 Elicio MHI Vestas 8.4MW Guanyin, Taiwan 350 WPD tbc Southwest Offshore Wind Korean Offshore Wind 60 Doosan 3MW Aqua Ventus, US 12 University of Maine tbc Project demo, S Korea Power Icebreaker, US 21 Leedco MHI Vestas 3.45MW TOTAL 5662MW South Fork, US 130 Orsted, Eversource Siemens Gamesa 8MW Vineyard, US 800 Vineyard Wind MHI Vestas 9.5MW Coming in 2020 East Anglia 1, UK 714 Iberdrola Siemens Gamesa 7MW Eolmed, France 25 Quadran tbc Kincardine, UK 48 Kincardine Offshore Wind MHI Vestas 9.5MW Golfe du Lion, France 30 Engie, EDPR MHI Vestas 10MW Borkum West 2.2, Germany 200 Trianel Senvion 6.3MW Groix&Belle Ile, France 28.5 Eolfi MHI Vestas 9.5MW