New research released by Douglas-Westwood reveals the world offshore wind market will see expenditure of € 38 billion over the next five years. By 2015, annual expenditure will be in excess of € 12 billion. With over 3GW of capacity online by the end of 2010 and a further 2GW under construction at present, the offshore wind industry is growing extremely quickly.
Over the five year period to 2015, more than 11GW of new capacity will be installed. The UK, Germany and China are the three biggest markets, which together will install almost 9.3GW, or 83%, of total global capacity for the period. The UK will continue its position as the leading market for offshore wind through the next five years with over 4.4GW of new capacity coming online. For the UK, the bigger success story is the momentum which is building in the supply chain with multiple offshore turbine manufacturers establishing themselves in the country. Critically, in the midst of big cuts to public spending, it has been made clear that government support for renewable energy and wind in particular is to continue. Although the UK has helped build the momentum in recent years, the large German market is now coming to life with project construction finally underway and tendering ongoing on projects for the next five years. Elsewhere in Europe, the Netherlands is now showing commitment to the sector, which should allow some of the many planned projects to reach construction.
The World Offshore Wind Market Report 2011-2015 highlights that the rising costs seen in the industry have now plateaued with evidence of small cost reductions on large projects towards the end of the period. Whilst large scale investment in the supply chain has taken place, it has been met by demand from project developers. With the ramp-up in construction expected to continue for much of the next five years any cost reduction will come slowly.
