The growing focus on renewable energy and the advantages offered by offshore wind energy over its onshore counterpart have led to greater installations of offshore wind energy. Favorable regulatory framework, incentives, and investments by key market players have further supported the market’s growth. The global installed capacity in the offshore wind energy market is anticipated to expand at a CAGR of 25% during the period between 2014 and 2022 to reach 52,120.9 MW by 2022.
How is the offshore wind energy market in Europe shaping up?
In Europe, countries such as the U.K., France, Germany, Netherlands, and Denmark are the pioneers in the offshore wind energy market and hence, Europe is the largest market for offshore wind energy. In 2013, the region reported 1,567 MW of new capacity additions in the offshore wind energy market. Germany holds about 30% of the consented offshore wind farms in Europe and has emerged as one of the leading offshore wind energy markets.
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Due to the new Energy Act of 2013 and Electricity Market Reform Package, the U.K. has been the prominent market for offshore wind energy. Changes in subsidy and uncertainty over Britain’s vote to leave the European Union have spelled long shadows over the growth of the domestic offshore wind industry. Investors are worried regarding future incentives and export duties that would impact the growth of the offshore wind market in the country.
According to the Renewable UK, Britain’s renewable energy industry body, the offshore wind market in Britain is expected to reach a valuation of US$27 bn during the period between 2010 and 2020. Currently, Britain has a capacity of over 5 GW whereas Germany has 3.4 GW of installed capacity. However, in the aftermath of the recent events, offshore wind energy projects in Britain are being delayed. For example, Siemens is reconsidering plans to expand its manufacturing plant in the port of Hull across northeast of England.
Why are the key players in global offshore wind energy market focusing on Asia Pacific?
Some of the major players in the global offshore wind energy market are Nordex, Suzlon, China Ming Yang Wind Power, Dong Energy, Sinovel Win, Gamesa, Vestas, GE Wind Energy, and Siemens. Though Europe is the leading region in the market, the key players are channelizing their efforts in expanding their business across Asia Pacific. The developing countries in Asia Pacific are registering an ever increasing demand for electricity and the offshore wind energy market has immense potential to grow across the region.
Presently, China is the only country with separate target allotment regarding offshore wind energy installations. The country has over 18,000 sea miles of coastline and hence, offers broad development opportunities for offshore wind projects. Companies are establishing joint ventures to tap on the opportunities in the China offshore wind energy market. For example, Singapore-based Ezion Holdings Ltd. has partnered with Sinotrans & CSC Holdings Co. Ltd. to support offshore wind power installation projects in China.