Global offshore wind market set for Gigawatt growth

According to the company’s latest report, this more than fivefold increase represents a Compound Annual Growth Rate (CAGR) of 28%. The report also revealed that the global offshore wind energy space registered substantial growth between 2006 and 2013, rising from 0.9 GW to 7.1GW, at a higher CAGR of 33.9%. Of this, 1.6 GW came online in 2013, driven mainly by the UK, Germany, Denmark and Belgium.

“Offshore wind power is increasingly being explored for its high yield, due to stronger and more consistent winds compared to onshore, and the scope that this provides for the construction of large-scale projects,” said Swati Singh, power analyst, GlobalData.

“An additional benefit is the fact that future offshore wind power technology development will ensure a decline in the average cost per megawatt, although overall project costs are expected to rise in countries with wind farms planned in deeper water and further from the shore,” the analyst added.

The market is now expected to become one of the largest renewable power market segments by 2020. The UK, Germany and China will contribute significantly towards this, says GlobalData, thanks to a number of projects currently in the planning and construction stages.

But, environmental concerns could hinder growth slightly, says Singh, while the lack of skilled personnel and sophisticated technology catering to offshore requirements could also prove problematic.

Despite these barriers, GlobalData expects offshore wind’s share in the global wind power market to climb from 2.2% in 2013 to 6.1% by 2020, as more countries eye the advantages of this renewable energy technology.

By Rachael Doyle