GLOBAL OFFSHORE WIND REPORT 2020 GWEC.NET 1 2 GWEC I Global Offshore Wind Report 2020 Table of Contents Foreword 5 Market Status 2019 9 Market Outlook 2030 13 Taking Offshore Global 31 Offshore Wind Technologies 80 Conclusion 95 Appendix 98 Abbreviation 99 Global Wind Energy Council Lead Authors Published Sponsored by Rue Belliard 51-53 Joyce Lee, Feng Zhao 5 August 2020 1000 Brussels, Belgium T. +32 490 56 81 39 Contributing Authors Design [email protected] Alastair Dutton, Ben Backwell, Aspire Design, New Delhi www.gwec.net Liming Qiao, Shuxin Lim, Anjali Lathigaralead, Wanliang Liang GWEC.NET 3 4 GWEC I Global Offshore Wind Report 2020 Foreword Rapid Growth world. Given that more than 70% September 2018, has brought of the planet is covered by sea, together the major industry It’s been quite a journey since I first and wind speeds are considerably players in offshore wind. Key got involved in the offshore wind stronger offshore than onshore, the interventions have been in industry 20 years ago. fundamentals are promising. Taiwan, Vietnam and Japan to assist market development. Offshore wind energy took its first Going Global steps in the 1990s and has been • The World Bank’s ESMAP growing in scale ever since. In Offshore wind is going global, Offshore Wind Development recent years, however, growth has country by country. This piecemeal Program, launched in March Alastair Dutton accelerated. From being 1% of global development is unhelpful for a supply 2019, is focused on expanding Chair of Global Offshore wind installations by capacity in 2009, chain which is seeking to make sound offshore wind to developing Wind Task Force, GWEC countries. The program is offshore wind has grown to over 10% investments and continue to reduce [email protected] in 2019. Measured in investment costs. However, there are a number engaging numerous countries terms that figure is much greater. of initiatives which aim to accelerate which will form part of the offshore wind’s deployment: wider global market in years to Offshore wind is now a mature GWEC’s Global Offshore Wind come. industry, but is only just beginning • Task Force, established in • The Ocean Renewable Energy it’s expansion in earnest around the Action Coalition (OREAC), launched in Dec 2019, targets Themes 1.4 TW of offshore wind by 2050. This industry body is in As we push through 30GW global capacity for offshore wind we see a number of answer to the UN High Level themes. Panel for Sustainable Ocean • In Europe, the market that started it all, the installation rate is accelerating. Economy call for action in Sept • Asia is picking up the pace with China installing more capacity in 2019 than any 2019. other country. This leadership is expected to continue through this decade. These initiatives are in co-operation The message that the price of power from offshore wind has fallen to out-compete • and complement each other for fossil fuels and nuclear, has been understood in many parts of the world. greater effect. GWEC.NET 5 Future Markets • Floating technology will come • One of those lessons is the UK • Existing markets are hungry of age this decade, tripling the Sector Deal which outlines targets for more, notably UK, Germany, technical potential for offshore and plans for government and Denmark, Netherlands, wind across the world. Initially industry to work together to Belgium and China. As an the key markets are France, dramatically progress the sector example, the UK is targeting 40 Japan, South Korea, Scotland, for the benefit of all. This best GW by 2030, up from 10 GW Norway, Portugal, Spain and US practice is now being adopted in today. Pacific Coast. Once commercial other markets such as Japan and scale projects are established Poland. Emerging markets include • and costs come down many Taiwan, US Atlantic Coast, other locations will come into COVID-19 Japan, South Korea and play, for example South Africa, Vietnam. Not only do these To date offshore wind has been less Canada, Philippines and many markets want low cost impacted than most energy sectors island states. electricity to decarbonize by the pandemic, and stands ready to their footprint but they are Lessons Learned be a material part of a green recovery package. keen to establish their own • Much has been learned from supply chains to benefit their the last 30 years of offshore Conclusion economies. However, inflexible wind deployment in Europe. local content requirements Those lessons are being taken The potential of offshore wind to could frustrate those economic worldwide by developers and achieve the energy transition within hopes by raising the cost consultants. Governments the right time frame and contribute to of electricity and creating are adapting those lessons in post-COVID recovery is increasingly inefficient local suppliers not the context of their particular being understood around the world. able to compete on a regional political and fiscal backdrops. At GWEC, we look forward to working or global market. with you all to realise this potential • New markets are in the preparation phase. Examples include Brazil, Mexico, India, Sri Lanka, Australia and many From being 1% of global wind installations by more. In Europe the existing market will expand into Ireland, capacity in 2009, offshore wind has grown to over Poland, Lithuania and others. 10% in 2019 6 GWEC I Global Offshore Wind Report 2020 Offshore Wind – The technology that is changing the world We tend to seek in every crisis an transformative impact that offshore one of the key pillars to ensuring opportunity, inspired by the dual wind would have on the world’s that they successfully reach their meaning of the word in Chinese. The energy mix. decarbonisation strategies, necessary COVID-19 crisis is not over yet, but to keep global warming under 1.5°C. 30 years ago, there was not a single it is already bringing to centre stage Philippe Kavafyan the offshore wind industry as one MW installed offshore, but with From the pivotal role offshore wind key element of the response to the current market predictions, there will play in delivering the European CEO, MHI Vestas global challenge we are all facing. By could be up to 1,400 GW installed Green Deal and in the UK economic revealing the previously unheralded worldwide over the next 30 years. recovery plan, to rapid growth in the achievements of offshore wind Asia Pacific region, now home to the Offshore wind technology has largest market in China, to continued technology and operations, the focus advanced dramatically over the on economic recovery is creating one progress in US federal and state past few decades. A single offshore waters, offshore wind is beginning to of these moments in history when wind turbine now has more capacity things suddenly accelerate. It is a time witness exponential growth across the than the output of the world’s first world. of positive disruption, because the two offshore wind parks combined. need is clear and the solution readily New technologies such as floating GWEC and its partners are also available and scalable. foundations enable installation in working tirelessly to ensure that the A pioneering industry deeper waters, paving the way next round of emerging markets such for another range of geographical as those in Latin America and India, The offshore wind pioneers of the opportunities for offshore wind. capitalise on the lessons learned from early 90’s might have known that they the three decades of experience. were creating something special Exponential growth ahead This will increase our chances as by unlocking the power of wind at 2020 was always destined to be an industry of reaching the global sea, but not even the most optimistic a big year for our industry. Many potential of offshore wind by 2050. at the time could foresee the truly nations now see offshore wind as GWEC.NET 7 Lessons learned and draw upon the cheapest, highest conditions for construction and role to play guiding the world through quality suppliers of components from service. these exceptional circumstances, What learnings can be shared as an the region. setting a practical course to reach increasing number of countries look Having risen to the initial challenge, global decarbonisation targets. to deliver many more projects further There is also an ever-increasing gap the industry now has the opportunity out to sea whilst reaping the industrial between the “raw” MWs that many to direct funds set aside for green This GWEC report provides a benefits of offshore wind? nations are targeting ahead of 2030- recovery stimulus packages to snapshot of the industry today, and 2050 renewable energy plans and the accelerate the investments in the the potential we have to realise The gradual, organic build up in the “qualified” MWs that can actually be necessary infrastructure that will help together in partnership to ensure the European supply chain has seen the installed by 2030-2050. As the size unleash the potential of the oceans future of our planet. rejuvenation of coastal communities, and complexity of projects increase, and the economic potential of many the growth of second and third tier greater emphasis must be placed countries. suppliers across the continent, and on reducing inefficiencies during skill development pathways to help the permitting process to ensure Investment in grids, ports, Power-to- transition workforces from sunsetting projects can be delivered on time Green Hydrogen projects all have to sunrising industries. and reach these targets. The industry the potential to rapidly increase has clear vision on the stakeholders deployment of offshore winds. If the With such valuable social and and challenges that typically cause delays in the permitting process can economic value and the continual delays, and these challenges must also be minimised through renewed reduction in cost of energy, it is easy be addressed and resolved by political willpower, then offshore wind to see why offshore wind is becoming collaboration with the industry and is ready to deliver on its potential.