by Growth of Oceanic wind Farms
Oceanic wind energy has seen tremendous growth over the past decade. Several European countries like the United Kingdom, Germany, Denmark and the Netherlands have invested heavily in oceanic wind farms. The UK now has over 10 GW of operational oceanic wind capacity installed across over 30 wind farms. In 2019 alone, new oceanic wind capacity added in Europe was over 3 GW. Countries like China, South Korea and Taiwan have also started developing oceanic wind projects at a rapid pace in recent years. However, the United States has lagged behind with only around 30 MW installed so far across two small oceanic wind farms off the coast of Rhode Island and Virginia. With a huge coastal territory, development of oceanic wind energy can play a big role in the US achieving its renewable energy targets.
Challenges of Developing Offshore Projects
While Offshore Wind energy offers many advantages over onshore projects like stronger and more consistent winds and ability to install larger turbines, developing oceanic wind farms also present unique technical and economic challenges. The harsh marine conditions require turbines, foundations and power cables designed to withstand storm surges, waves and corrosion from sea water. Deep water installation of turbines and foundations further increases costs. Laying of underwater transmission cables from wind farms to onshore substations is another complex task. High upfront capital costs for specialized oceanic wind construction vessels and installation of components have kept per unit costs of oceanic wind energy higher than other renewable sources so far. Environmental impact assessments also need to be conducted to protect sensitive marine ecosystems during oceanic wind farm development.
Cost Reductions from Larger Turbines and Economies of Scale
However, increasing experience with oceanic wind projects is helping drive down costs through economies of scale and technology innovations. Larger turbines in the 8-10 MW range are now becoming commercially viable, helping maximize energy output from each foundation. As projects become larger, costs of common infrastructure like transmission networks, port facilities and installation vessels get distributed across more turbines. Standardization of turbine and foundation designs suitable for different depths and sea conditions is further improving efficiency. Advancements in construction techniques are allowing installation in deeper waters that have stronger and more consistent winds. All these factors are contributing to significant cost reductions. Recent auctions in Europe have seen the cost of oceanic wind energy dip below new build costs for nuclear power and fossil fuel plants in some markets, showing its increasing competitiveness.
Role of Government Support and Policy Stability
While Offshore Wind is gradually reaching parity with conventional power sources in cost, continued government support through subsidies, tax incentives and policy mechanisms like renewable portfolio standards will remain important for driving further technology advancements and scale up. Countries aiming to mainstream oceanic wind capacity need clear long-term policy targets and visibility into market mechanisms that provide stable revenue streams for projects over their operational lifetimes spanning 20-25 years. Auction frameworks that procure new capacity at the most competitive price have emerged as a preferred support model worldwide. Committed government vision and public acceptance are also vital for attracting big investments required in building massive oceanic wind farms and the associated manufacturing and ports infrastructure.
Prospects for Job Creation
Aside from abatement of greenhouse gas emissions, oceanic wind power development holds promise for substantial economic development and job creation in coastal regions. According to estimates, the oceanic wind supply chain could support over 83,000 jobs in manufacturing, construction, operations, maintenance and project development in the US by 2030 alone if the deployment targets are achieved. Europe which has emerged as a leader in oceanic wind has seen creation of over 260,000 direct and indirect jobs so far. Manufacturing hubs for turbine components like blades and nacelles, foundation structures, cables, substations and installation and maintenance vessels would need to be established locally. Robust training programs will be required to develop a skilled workforce for the specialized construction and servicing work. Port facilities will have to be upgraded to support heavy lift operations and staging of components. All these industry needs coupled with stable long-term policy will help maximize broader economic and employment potential of oceanic wind power.
Emerging Market Outlook
With more countries committing to clean power development and achieving climate action goals, global Offshore Wind industry is projected to triple over the next decade. Cumulative installed capacity worldwide is forecast to surpass 60 GW by 2030 from around 30 GW currently. While Europe will likely remain the dominant market player led by UK, Germany and Netherlands, fast emerging new markets include those in Asia Pacific and North America. China with its burgeoning renewable energy buildout aims to install over 20 GW of oceanic wind by 2025 to meet its climate pledge. Taiwan has set an ambitious target of installing 5.7 GW by 2025. South Korea’s first offshore project began operations in 2017. In the US, multi-GW pipeline is now under development across East Coast states like New York, New Jersey, Maryland and Virginia taking advantage of strong winds. Overall oceanic wind energy future is looking bright with large untapped resources that can power millions of homes and support sustainable economies.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it
About Author - Priya Pandey
Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement. LinkedIn Profile
