According to a report by Navigant Research, the offshore wind power industry will continue to increase at a steady pace. In fact, more than 69 GW of new offshore wind capacity is expected to be installed between 2018 and 2027.
Specifically, the report says that the offshore wind power is expanding to new markets as cost reductions in the technology and demand for renewable energy become more attractive to governments, power utilities and other stakeholders.
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Despite the fact that fewer offshore wind is installed per year in comparison to onshore wind, it is a clean energy solution for many coastal load centers where a greater proportion of population and energy demand is located. Namely, over 69 GW of new offshore wind capacity is expected to be installed between 2018 and 2027, surpassing 100 GW of operating capacity by 2030.
Offshore wind is quickly becoming more cost-effective with each successive competitive tender in Europe. Power purchase prices for projects are dropping, driven by turbine size and other technology improvements, economies of scale, faster installation cycles, and increased supply chain competition
Navigant Research notes.
Finally, industry leading countries such as the UK, the Netherlands, Denmark, Germany, and Belgium are under way on the transition phase to market-oriented policies and include highly competitive bidding for power contracts. Competitive bidding has also started in the US ahead of offshore project installations along the Northeastern seaboard.
