Offshore wind is showing strong growth globally, with an estimated 1 million jobs needed across the value chain to support this expansion. As you can see from the forecast published by the Global Wind Energy Council, new installations are set to rocket and this will happen across many regions of the globe not just China and Europe.
Accelerated growth have recently been driven by enhanced commitments to triple the renewable commitments at COP28 rapid as well as a reduction in the Weighted Average Cost of Capital (WACC), which has declined faster and more sharply than anticipated. This reduction in WACC a sign of the increased maturity of offshore wind is crucial as it drives down the overall cost of offshore wind projects, making them more competitive with traditional energy sources.
Underpinning this growth more broadly are improved turbine scales and designs, improved supply chains, regulatory mechanisms, operational experience and maturing development and permitting processes.
The ramp up of floating offshore wind is a key trend to look at. Floating wind, is less mature than onshore wind and has some notable differences in technology and logistics. It requires significant changes in port infrastructure requiring more space and specialisms at port. The foundation costs for floating wind are actually higher due to the additional steel required, but these costs are partially offset by the ability to construct at port and install more efficiently. There’s a large learning curve to undertake in this space.
Innovation in the offshore wind sector continues, with AI beginning to influence various aspects of development and operations & maintenance (O&M). From optimizing turbine placement to predictive maintenance, AI is poised to revolutionize the industry, further driving efficiency and reducing costs.
Decommissioning offshore wind farms will also become a major industry in the future. The good news is that 90% of the mass of wind turbines is steel, which is easily recyclable. Additionally, emerging processes now allow for the chemical recycling of blades, addressing a long-standing environmental concern.
As offshore wind continues to evolve, the combination of technological advancements, cost reductions, and environmental considerations will shape the future of global energy, making it a cornerstone of the clean energy transition.
