Energy Transition

The winds of change: 5 charts on the future of offshore wind energy

Despite the disruption, the pandemic has failed to cast a shadow over growth of offshore wind energy sector

Despite the disruption, the pandemic has failed to cast a shadow over growth of offshore wind energy sector Image: REUTERS/Phil Noble

Andrea Willige
Senior Writer, Forum Agenda
  • 2019 was the biggest growth year to date for offshore wind energy.
  • Despite COVID-19, industry body GWEC predicts strong growth in 2020, and substantial job creation over the next decade.
  • China shows biggest growth rates, with other Asian economies also rising.
  • Europe continues to lead in overall offshore capacity.

Offshore wind energy is enjoying a boom time. Policy targets, falling costs, smarter operations and more powerful wind turbines have driven its rapid adoption – initially in Europe and more recently in Asia and the US.

Have you read?
Installation of offshore wind energy farms has seen a surge in Europe and China
Installation of offshore wind energy farms has seen a surge in Europe and China Image: GWEC Market Intelligence, June 2020

2019 was the best year in history for the offshore wind sector, with installed capacity now topping 29 gigawatts globally.

Europe still leads in terms of overall offshore wind energy capacity, but momentum has been building for some years in Asia-Pacific and the US. China recorded the highest number of new installations in 2019.

This is according to a new report by the Global Wind Energy Council (GWEC), which also finds that offshore wind has been less affected by the global pandemic than other sections of the energy market.

GWEC expects a further 6.6 GW to be installed in 2020 – more than in the previous year – despite the downturn. The report also predicts that the sector will create 900,000 jobs over the next 10 years, suggesting that the sector could be a major contributor to a 'green' economic recovery.

Global offshore wind energy growth to 2030
Global offshore wind energy growth to 2030. Image: GWEC Market Intelligence, June 2020

Europe continues to lead offshore wind energy market – but Asia is biting at its heels

Today, Europe is the largest market for offshore wind energy, with its 22 GW making up 75% of total global installations. It's set to continue this leadership role, targeting up to 450 GW of offshore wind capacity by 2050. This will be driven by installations in the UK, Netherlands, France, Germany, Denmark and Poland.

By 2030, China is expected to have added 52 GW of new capacity. Other markets in Asia will scale up offshore wind too, with Taiwan expected to install 5.5 GW by 2025 and an additional 10 GW by 2035. Viet Nam, Japan and South Korea are expected to install 5.2 GW, 7.2 GW and 12 GW respectively.

Global offshore wind energy growth to 2030 in Europe.
Global offshore wind energy growth to 2030 in Europe. Image: GWEC Market Intelligence, June 2020

The roll-out of offshore wind energy farms in North America, meanwhile, is predicted to accelerate from around 2024. The region currently has just 30 MW of offshore wind capacity, but GWEC anticipates that it will add 23 GW by 2030. This growth will be almost completely in the US, with only 1% forecast to come from Canada.

As a result of these trends, Europe’s leadership is set to drop from 75% of global installed capacity to 48% by 2030.

Global offshore wind energy growth to 2030 in North America.
Global offshore wind energy growth to 2030 in North America. Image: GWEC Market Intelligence, June 2020
Discover

What's the World Economic Forum doing about the transition to clean energy?

Floating power rising

Technically, the expanding size and generation capacity of offshore wind energy turbines has contributed significantly to the attractiveness and commercial viability of these power plants in the sea.

According to the International Energy Agency (IEA), moving into deeper waters using floating – rather than fixed – wind turbines has the potential to meet the world’s electricity demand 11 times over by 2040. For this to happen, though, costs will have to fall and governments will need to engage with developing technologies and approaches.

Floating offshore wind energy installations 2019-2030.
Floating offshore wind energy installations 2019-2030. Image: GWEC Market Intelligence, June 2020

The GWEC report suggests that at least 6.2 GW of floating wind will be installed over the next decade, building on the 65.7 MW that exists today.

At present, the UK, Portugal and Japan lead the market in total floating installations, with South Korea, France and Norway forecast to take over the top places by 2030. GWEC expects floating wind farms to account for 6% of global new installations by the end of the decade.

Smoothing the path for the energy transition

Now considered a mature market with a growing global following, offshore wind energy is set to become a key pathway for the energy transition – and a $1 trillion industry by 2040.

Loading...
Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

Energy Transition

Related topics:
Energy TransitionClimate ActionStakeholder Capitalism
Share:
The Big Picture
Explore and monitor how Energy Transition is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

The hidden fuel: energy efficiency lessons from the UAE

Sharif Al Olama

November 1, 2024

The biggest barriers to energy sector growth are often policy-related.  Here’s how to overcome them

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum