Offshore wind energy generation has huge potential

Subject

Offshore wind costs and potential.

Significance

The International Energy Agency (IEA) released a report on October 25 estimating that offshore wind capacity will rise 15-fold over the next two decades. Costs have been falling ahead of expectations and further cost reductions will help the sector to build more momentum.

Impacts

• North European turbine producers and wind project developers see huge export potential, but Chinese firms will provide stiff competition.
• Offshore construction vessels will support rising offshore wind deployment and help to bolster currently weak shipyard order books.
• Governments and regulators will create supportive policies for offshore wind, but this will occur gradually and differently across regions.