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Global offshore wind capacity in operation reached 75 GW in 2023, according to a recent report (pdf) by the Global Wind Energy Council (GWEC). Despite the wind sector facing major challenges over the last few years, 2023 marked the second highest year ever for global offshore wind installations, with 10.8 GW of new capacity added — a 24% increase compared to 2022. This growth rate is expected to continue up to 2030, with total wind capacities set to reach 487 GW by 2033, GWEC concluded.
Which countries came out on top? China led the way with 6.3 GW of new additions, maintaining its growth streak for the sixth consecutive year. Taiwan, Japan, and South Korea also contributed with new installations. In Europe, a record 3.8 GW was added, with the Netherlands leading the region. North America saw installations but no new commissions.
Emerging markets are making considerable progress: GWEC’s aid geared towards funding
offshore wind initiatives in developing economies and scaling regional supply chains, has helped several nations progress. Japan, South Korea, Australia, the Philippines, Brazil, and Colombia have all moved towards developing a fully-fledged offshore wind industry, the report found.
But there are still obstacles in the way: The deployment of offshore wind projects is often delayed due to a lack of capacity, expertise, understanding, or political consensus among policymakers, which was seen in countries such as Brazil. Other nations like South Korea and Japan also experienced challenges to grow their offshore wind projects due to growing opposition from local communities, fisheries, and conservation groups who express concern about the potential impacts on marine life and fishing industries.
Offshore wind potential is overlooked in MENA: The region’s total offshore wind potential stands at 1.4 TW, according to GWEC. Saudi Arabia, Morocco, Egypt, and Oman were all found to have significant potential for both onshore and offshore wind projects. Saudi Arabia alone has a potential offshore wind capacity of 106 GW, but currently operates only one onshore wind farm. Morocco has an estimated 200 GW of offshore wind potential, with the European Investment Bank recently granting USD 2 bn to the Moroccan Agency for Sustainable Energy for a feasibility study on Morocco’s Atlantic coast.
A change may be around the corner: While the region currently remains more focused on its well-recognized solar potential, changing trends are proving that a shift is imminent, GWEC said, adding that the low level of investments in offshore wind and the lack of availability of onshore locations are the reasons being the industry’s delayed development.
The future looks bright: Despite facing inflation, increased capital costs, and supply chain issues in 2023, the offshore wind market’s medium-term outlook remains strong. The GWEC forecasts a compound annual growth rate of 25% until 2028 and 15% up to the early 2030s. However, commercialisation of floating wind is not expected until the end of this decade. GWEC forecasts 8.5 GW of floating wind by 2030, a 22% downgrade from previous projections.
