The increasing advantages of offshore wind energy over its onshore counterpart is a major factor boosting the global offshore wind energy market, states Transparency Market Research in its latest report. The report, titled “Offshore Wind Energy Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2022”, is available for sale on the company website. According to the report, the global installed capacity in the offshore wind energy market is poised to grow from 7,045.4 MW in 2013 to 52,120.9 MW in 2022, developing at a 25.0% CAGR during the forecast period. Annual installations, on the other hand, are expected to rise from 1,629.4 MW in 2013 to 7,228 MW by 2022, at a 19.60% CAGR during the same time-frame.
On the basis of geography, the global offshore wind energy market is divided into North America, Europe, Asia Pacific, and Rest of the World. Europe is presently the largest market for offshore wind energy since it is the only region that has made significant investments in the field. This positive investment climate is anticipated to continue through 2022, according to the report. In 2013, Europe reported 1,567 MW of new capacity additions in the offshore wind energy market, which was a massive 34% greater than the year prior to that. With the implementation of numerous favorable initiatives such as the Electricity Market Reform Package and the new Energy Act of 2013, the U.K. has emerged as the most prominent offshore wind energy market in Europe. The construction of wind turbines and manufacturing facilities in the country is supported by the Associated British Ports, which also boosts the offshore wind energy market in the U.K. However, a funding gap is threatening to hold this market back owing to the difference between planned capacity additions and available subsidies.
Germany is also a strong market for offshore wind energy and holds 30% of the consented European offshore wind farms. An inherent locational advantage and stronger port infrastructure makes Germany a leading contender in the European market and the report indicates 9 GW of new capacity in the pipeline. Asia Pacific is the next largest market for offshore wind energy; however, China is currently the only country with a separate target allotment when it comes to offshore wind energy installations.
The most prominent players operating at a global and domestic level in the global offshore wind energy market include Sinovel Wind Group Co. Ltd., Siemens Wind Power, Dong Energy A/S, Gamesa Corporacion Tecnologica S.A., Nordex SE, Vestas Wind Systems A/S, Suzlon Group, China Ming Yang Wind Power Group Limited, GE Wind Energy, and Goldwind Science and Technology Co. Ltd.Each of these companies is profiled in the offshore wind energy market research report on the basis of attributes such as company overview, financial standing, business strategy, product portfolio, and recent developments.
Offshore wind energy has numerous advantages over its onshore counterpart. Other than the fact that higher wind speeds may be harnessed in offshore environments, the sector is also less likely to run into controversies surrounding land acquisition, a problem which has been plaguing the onshore wind sector since its inception. Additionally, numerous countries do not have feasible land available wherein wind energy can be harnessed or have already exhausted their onshore wind resources. In all of the aforementioned scenarios, offshore wind energy can prove to be an extremely viable alternative. However, this technology is not without its fair share of disadvantages. Firstly, the technology is relatively underdeveloped, which directly translates to higher costs for construction and commissioning. The higher costs further translate to higher levelized costs of electricity which can prove to be highly detrimental for a technology that is continuously trying to compete with other renewable power generation sources.