Offshore Wind Industry Will Become €130 Billion Annual Market By 2020
May 8, 2013 Silvio Marcacci
Offshore wind power may yet not match the overall strength of onshore wind, but the industry is on course grow rapidly to become an €130 billion global market by 2020.
Global offshore wind market image via Roland Berger
A new report from industry consultants Roland Berger, “Offshore Wind Toward 2020,” concludes a combination of industry trends will soon make offshore wind cost competitive with other generation sources in many markets.
Europe is expected to continue dominating the global offshore wind industry, but the Asia Pacific and North American regions will soon represent significant market shares as technological innovation reduce many bottlenecks that have stymied project development to date.
Europe Continues To Dominate Global Markets
New turbines are expected to sprout from seas across the globe, but Europe will lead the charge, buoyed by ambitious national policy goals in multiple countries. The European Union has set 2020 targets of 35% electricity from renewables, with a 12% carve out for wind and 40 gigawatts (GW) installed offshore capacity.
So far, those targets have helped build 5GW offshore wind capacity, with new installations exceeding more than one offshore turbine per business day in 2012, equivalent to 10% of Europe’s annual wind energy installations. In many cases, actual generation from wind farms has exceeded expectations.
But current offshore output will be swamped by future additions – by 2020 reaching 4.5GW of new annual offshore wind capacity additions, worth more than €14 billion per year. Those estimates would more than triple annual capacity additions and double total investments for 2013, currently at 1.8GW and €7 billion respectively.
Growing Asia-Pacific, North American Markets
Just like a rising tide, the offshore wind market’s growth will raise boats outside of European waters...