With superlatives coming thick and fast to describe the markets’ growth, both offshore wind and floating offshore wind project pipelines have doubled globally in the last 12 months
As new offshore wind markets around the world look to expand, the US is opening up and has broken ground on its first commercial project, and industry watchers have tracked the doubling of global project pipelines for the sub-sector of floating offshore wind and the overall offshore wind market as a whole.
Offshore Wind Journal editor David Foxwell outlines the milestones marked in his selections for the most important stories to come out of the offshore wind sector in 2022.
US offshore wind pipeline hits 77 GW after third-quarter leap in planned capacity
In recent years, the US has become an incredibly fast-growing market. Work has started on the first commercial-scale offshore windfarm in America on the country’s east coast and Q3 2022 saw states increase long-term targets by 58%, a new record for quarterly growth. The Biden administration unveiled a plan to reach 15 GW of floating wind by 2025 nationally, and California has set a target of 25 GW of floating wind by 2045. Led by the Bureau of Ocean Energy Management, more and more areas are being opened up for offshore wind on both the east and west coasts, including most recently, eight draft wind energy areas offshore the central Atlantic coast of the US with capacity for more than 20 GW of offshore wind, and new areas in the Gulf of Mexico.
Global floating wind pipeline has doubled in last 12 months
Long seen as a turning point heralding the ‘next generation’ of offshore wind projects, 2022 was a year in which floating offshore wind projects really took off, with the pipeline more than doubling from 91 GW a year ago to 185 GW. The number of projects has increased globally during that time from 130 to 230, with the UK maintaining its global lead, with a pipeline much larger than any other country. In fact, the UK’s pipeline has increased from 23 GW a year ago to more than 33 GW, and from 29 projects to 51, which are being developed in the North Sea – in Scottish and English waters – the Celtic Sea and the North Atlantic Ocean. 96 MW is under construction worldwide, 288 MW of development is consented or in the preconstruction phase, 31 GW is in planning or has a lease agreement and 153 GW is in early development or is going through the leasing process.
New markets, new developers, new suppliers: offshore wind growth ‘skyrocketing’
Few industries are enjoying a skyrocketing rate of growth at present, but offshore wind is bucking the trend, with 135 GW of new capacity on offer to developers, equivalent to nearly 2.5 times today’s 55 GW market, according to research by Westwood Global Energy Group. Westwood said this fast pace of growth is bolstered by new market expansion, with more than 20 GW of leases up for grabs in countries which have not previously held a licensing round, such as Canada, Colombia and India. At the same time, countries from Brazil to Sweden, Finland, Australia and New Zealand, to name but a few, have signalled their intention to put offshore wind at the heart of their energy markets.
The Netherlands sets huge long-term target for offshore wind capacity
In September 2022, the Dutch Government set out plans for the long-term growth of offshore wind energy and a new long-term target for growth in capacity. The government said it wants to have 50 GW of offshore wind generating capacity by 2040 and is aiming for a huge 70 GW by 2050. Like many European countries, in the Netherlands the drive to build more and more offshore wind is driven by clean energy targets and by recognition of the need for energy security. In addition to generating electricity, the Dutch Government is also making plans for large-scale production of green hydrogen in the North Sea, to enable industry to transition from gas. Interconnectors with other North Sea countries will also contribute to security of supply.
‘Staggering growth’: global offshore wind pipeline doubles in 12 months
In June 2022, RenewableUK confirmed the global pipeline of offshore wind projects had nearly doubled in the previous 12 months, from 429 GW of capacity a year ago to 846 GW today. China had the biggest offshore wind project pipeline at 98 GW, the UK is in second place at 91 GW (up from 55 GW a year ago) and the US is third with 80 GW. Germany is fourth at 57 GW. Other countries with major pipelines include Brazil, Sweden, Ireland, Vietnam and South Korea. Europe has a pipeline of 350 GW with 26 GW fully operational and the pipeline in countries outside Europe stands at 496 GW. As RenewableUK chief executive Dan McGrail noted, “Countries around the world recognise the urgent need to ramp up the transition to clean power, not only to tackle climate change, but also to provide secure supplies of low-cost, homegrown electricity for people hit hard by international gas prices going through the roof. Add to that the benefits of creating millions of skilled jobs and attracting billions in private investment, and you can see why offshore wind is surging ahead globally.”
