GLOBALWINDENERGYCOUNCILGLOBALOFFSHOREWINDREPORT2023GWEC.NETAssociateSponsorsSupportingSponsorLeadingSponsor1GWECGLOBALOFFSHOREWINDREPORT2023Foreword2ExecutiveSummary6Part1:OffshoreWindEnablers13Part2:Technology41MarketStatus202252MarketstoWatch59MarketOutlook2023-203290Appendix108TableofContentsGlobalWindEnergyCouncilRuedeCommerce311000Brussels,Belgiuminfo@gwec.netwww.gwec.netLeadAuthorsRebeccaWilliams,FengZhaoContributorsandeditingbyBenBackwell,JoyceLee,AmishaPatel,MafSmith,MarkHutchinson,AnjaliLathigara,WanliangLiang,EstherFang,ThoaNguyen,BenHubbard,MarcelaRuas,RamonFiestas,WangariMuchiri,LimingQiao,ThangVinhBui,EunbyeolJo,NadiaWeekesAdditionalcontributionsSERColombia–AsociaciónEnergíasRenovables,AssociaçãoBrasileiradeEnergiaEólicaeNovasTecnologias(ABEEólica),JapanWindPowerAssociation,RenewableEnergyInstitute–Japan,KoreaWindEnergyIndustryAssociation,ChinaWindEnergyAssociation,SouthAfricanWindEnergyAssociation–SAWEA,CleanEnergyCouncil(Australia),AmericanCleanPower,CanadianRenewableEnergyAssociation−CanREAPublished28August2023Designlemonboxwww.lemonbox.co.ukGLOBALWINDENERGYCOUNCILGWEC.NETForeword2RebeccaWilliamsHeadofGlobalOffshoreWind,GlobalWindEnergyCouncilThe2023GlobalOffshoreWindReportmarksanewfrontierintheglobalgrowthofoffshorewind.Ouranalysisshowsthatover380GWofoffshorewindcapacity,across32markets,ispredictedtobeaddedinthenexttenyears.Thereareplansinplaceforoffshorewindtoprovidelarge-scale,renewableenergyineverycontinentintheworld,saveforAntarctica.Thisisexcellentnewsfortheplanetandanincreasingnumberofcommunitiesthatwantclean,reliableelectricitytopowerlives,developlocaleconomiesandboostindustrialgrowthandjobs.Forthe2023edition,wearelaunchingthereportattheinauguralGWECAsiaPacificOffshoreWindandGreenHydrogenSummitinAustralia.Thisnew,annualeventrecognisesthehugeoffshorewindopportunityfortheAsiaPacific(APAC)region.Indeed,ourreportshowsthatnearlyhalfofalloffshorewindinstalledworldwideinthenexttenyearswillbeinthisregion,fromanever-greaternumberofnewoffshorewindmarkets.AsmorecountriesinAPACpledgetoworktowardscarbonneutrality,thereisagrowingdemandforrenewableenergysources,suchasoffshorewind.WhilstChinacontinuestobethebiggestsinglemarketintheregion,weareforecastingcapacityadditionsinanincreasinglydiversifiedsetofmarkets.Ouroutlookshowsmorethan180GWcapacityofoffshorewindprojectpipelineidentifiedoutsideofChina.Thisyearalone,wehavesofarseenimportantbreakthroughsinseveralmarkets:Bangladeshannouncedplansforitsfirsteveroffshorewindproject;VietnampublishedthePowerDevelopmentPlan8,thatsetsanoffshorewindtargetof6GWby2030and70–91.5GWby2050;SouthKoreagrantedover20.8GWofoffshorewindelectricitybusinesslicences(EBL)andisdevelopinga‘dual-track’systemforoffshorewinddevelopment;andthePhilippinesismovingtowardsitsfirstGreenEnergyProcurementauctionforoffshore,whichcouldbeasearlyasnextyear;fromhumbleoffshorewindbeginnings,Australianowhasapipelineof50GWofcapacity,withtheeventhostcity,Melbourne,inthestateofVictoria,recognisedastheepicentreoftheAustralianoffshorewindindustry.Thecentralchallengegovernmentsandindustrynowfaceinthisregionisrealisingthispotential.APACispoisedforgrowthbutthemarketalonewillnotdeliverinitscurrentstate.AchievingtherolloutofoffshorewindatthisscaleintheAPACregionwillrequireunprecedentedcollaborationandcooperationbetweengovernmentsandindustry.WhilethestagemaybesetforAPACgrowth,inbothEuropeandtheUSWelcometotheGlobalOffshoreWindReport2023AchievingtherolloutofoffshorewindatthisscaleintheAPACregionwillrequireunprecedentedcollaborationandcooperationbetweengovernmentsandindustry.GWECGLOBALOFFSHOREWINDREPORT2022Foreword3theindustryisdealingwithsomeacutegrowingpains.Challengessuchasinflation,increasedcapitalcostandthesupplychaincrunchhavebeenbroughtintosharpreliefinmarketsthathaveprioritisedrace-to-the-bottompricingschemes.Meanwhile,offshorewindprojectshavebeendelayedorindefinitelystalledbyinadequateandinefficientpermittingandlicensingrules.Thesefactorshavecreateduncertaintyandhaveforceddeveloperstoreviewtheviabilityoftheirprojects,insomecaseseventostopdeveloping.Suchineffectivepoliciescentredonadownwardpricecompetitionand,wherecoupledwithimpracticalandunattainablelocalcontentstipulations,willaddtoprojectcostsandslowthepaceofoffshorewinddeploymentneededfortheworldtomeetnetzero.Atthesametime,GWECanalysisshowsthatbythemid-2020stheremaybesupplychainbottlenecksineveryregionoftheworldexceptChina.Immediateinvestmentandglobalcooperationwillbeneededtoaddressthesebottlenecks.Restrictivetradeandinvestmentpolicies–andcallstodecouplefromChina’ssupplychain–mayriskdelayingtheglobalenergytransition.Theheadwindsfacedbythesectoraresymptomaticofpolicyandfinancingenvironmentsthatarenolongerfitforpurposeastheworldworkstowardsa1.5Cpathwaywherewindgeneratesone-fifthoftheworld’selectricityby2030andtwo-thirdsby2050.TheUAECOPPresidency,IEAandIRENAarenowleadingcountriestoalignbehindtheambitiousaimoftriplingrenewableenergycapacityby2030,toaround11TWaheadofCOP28.Thistargetwouldsendaseriousmessagethatcountriesarepreparedtomakesuretheirenergyobjectivesarealignedwithclimategoals,providingthebasisforpolicyactionthatcouldacceleratedeploymentofoffshorewindpower.Thesettingofthistarget,andtheevidenceoftheheadwindsfacedbythesector,showsthatthetimehascometotakeanew,simplerapproachtopolicyforoffshorewind.Suchanapproachshouldprioritisethedeliveryoflargevolumesofoffshorewind,supportedbyincentive-basedindustrialpoliciestodeliverthesocio-economicbenefitstheworldnowexpectsfromtheindustry.Itisevidentthatscalingoffshorewindwillrequiresharedproblem-solvingtofindeffectivepolicysolutionsacrossthesector,includingcruciallyhowwescaletheglobalsupplychain.Thekeymessagehereisthatachievingthenecessarygrowthinoffshorewindenergyproductioncannotrelyonprotectionistpoliciesthatisolatedomesticmarkets.Ourmessageisclear:Weneedpartnership,notprotectionism.Collaborativeeffortsbetweenindustryandgovernmentswillbeessentialtoaddressingthesechallenges.TheestablishmentoftheGlobalOffshoreWindAlliance,amulti-stakeholderanddiplomaticallyledinitiative,signifiestheindustry’scommitmenttopublic-privatepartnership.Byworkingtogether,theindustryandgovernmentscancreateanenvironmentthatfostersinnovation,investmentandthedevelopmentofarobustoffshorewindsupplychain.Thisapproachisessentialtomeetthegrowingglobaldemandforcleanenergyandmakeasignificantpositiveimpactonboththeenergytransitionandenvironmentalgoals.GWECanalysisshowsthatbythemid-2020stheremaybesupplychainbottlenecksineveryregionoftheworldexceptChinaSponsor4Theworldischangingrapidly:lastyearwasoneofthemostchallengingintheenergysector.WhilewewererecoveringfromtheimpactsoftheCOVID-19pandemic,differentgeopoliticalmovements,includingawarinEuropethattriggeredanenergycrisis,furtherincreasedthepoliticalwillingnesstoacceleraterenewablesdeploymentastherightandonlywayforward.However,itisnecessarytoactnowtocreatetheconditionsrequiredforthistransitiontohappen.Forseveraldecadesthewindindustryhasdemonstrateditsability,flexibilityandresiliencetocreatewealthandasustainablefutureforsociety.Weshouldcontinueworkingtogethertoovercometheshort-termchallengesandtodeliveronthesebigambitions.Thankstothehugeeffortofalltheactors,inthelast15yearsoffshorewindhasprovenitisabletodeliverlargeamountsofgreenenergyatareasonableandaffordablecost,becomingakeypieceofdecarbonisationplansworldwide.Bytheendoflastyear,theworldhadmorethan60GWofoperationaloffshorewindcapacity,withalmost9GWinstalledin2022alone.Thisisthesecond-bestannualdeploymentfigureinoffshorewindhistoryandrepresentsmorethan10%ofthetotalwindcapacityinstalledin2022.Weexpectoffshorewindinstallationstocontinueincreasingsignificantlyinthenearfuture.Despitecurrentdifficulties,suchassupplychainconstraints,inflationandhighinterestratesamongothers,wewillprobablyseeseveralprojectsbeingdeliveredbetween2023and2025.Toensurewecancontinuedeliveringsustainablegrowthfortheindustrypost-2025,thesectorandpolicymakersshouldinvestalltheireffortstodayinpavingthewayforthedecisionsweneedtotakeintheshortterm.Offshorewindenergyisacapital-intensivesolutionthatrequiresregulatorystabilityandlong-termpredictabilityinordertounlockthenecessaryinvestment.Specialattentionshouldbepaidtosupplychainresilienceandpreparedness.Majorinvestmentsinsupplychaincapabilitiesandequipmentwillberequiredtomeetgrowthtargets.Thiswillbringmassivepositivereturnsintheeconomybutwillonlyhappenifsuitableframeworksareinplacetogivetherightlong-termsignalsfortheseinvestments.Ifnoactionistaken,thesupplychainwillfaceseriousdisruptionsfrom2026,asthisreportoutlines.Equalconsiderationshouldbegiventoattractinganddevelopingtalent–alreadyakeyfactorfordeliveringtheoverallobjectivesoftheenergytransition.Beingmindfulofpriceandcostpressureonconsumersandthesupplychain,designingtherightauctionprocessestoawardsitesbecomesparamountforachievingthesector’sgoals.WeshouldquestionwhethertheAlvaroMartinezPalacioManagingDirector,OffshoreWind,IberdrolaOffshorewindenergyisacapital-intensivesolutionthatrequiresregulatorystabilityandlong-termpredictabilityinordertounlockthenecessaryinvestment.Deliveringonthebigambitionsofglobaloffshorewind5GWECGLOBALOFFSHOREWINDREPORT2023uncappednegativebiddingschemescurrentlyrunninginsomecountrieswillthreatenoffshorewindgrowthtargets.Theseschemesimposesignificantadditionalcostsonprojectsandheightenpressureonthesupplychain,leadingtohigherelectricitypricesandincreasingtheriskofdelayingprojectinvestmentdecisions.Facilitatingonshoreandoffshoregriddevelopment,designingseabedallocationmechanismsthatfocusonprojectdeliveryandstreamliningpermittingprocessesarekeyenablersfordeployingourambitiousgoals.Recentmarketvolatilityalsocallsforpriceriskreductioninauctions,forexample,throughindexationtoinflationandcommodities,toensurefasterandtimelyconstructionofprojects.Atthesametime,discussionsshouldshiftfromcosttovaluebydesigningframeworksthatpromotesolutionsinvolvinggeneratorsandofftakers.Thiswillboosttheadvantagesthatoffshorewindcanofferbycontributingtosustainabletransformationoftheeconomy.Over20yearsago,Iberdrolaanticipatedthatwindenergywouldbeakeydriverforfuturepowersystems.Sincethen,ithasbeencommittedtothewindsectorandtheenergytransition.Fifteenyearsago,thecompanyenteredtheoffshorewindmarket.Wecannowsaythattheseweretherightdecisions.Thankstoitsvision,bytheendof2022Iberdrolahad1.4GWofoffshorewindcapacityinoperation,morethan3GWunderconstruction,anadditional14GWofsitessecuredandmorethan20GWunderdevelopment.Morerecently,IberdroladecidedtoexpanditsonshoreandoffshorewindactivitiestotheAsiaPacificregionandiscurrentlydevelopingoffshoreprojectsinJapan,TaiwanandAustralia,bringingtogetheritsexperienceinothermarketsanditsexistinglocalfootprint.Webelievethisregioncanbecomeakeygrowthareafortheoffshorewindsector,andtheauthoritiesaremakinggreateffortstocreatesuitableframeworkstopromotethenecessaryinvestments.Thereisnodoubtthatoffshorewindenergywillplayakeyroleinthedecarbonisationofallsectorsoftheeconomywithitsmature,cost-competitiveandreliableenergy.Collaborationiscrucialtoachievingtheincreaseinpaceofinstallationsdescribedinthisreport.TheindustryneedstokeepworkingtogetherwiththesupportofGWECtoengagewithgovernmentsandcommunitiesgloballyincreatinganenablingenvironmenttofostergrowthfortheoffshorewindsector.Sponsor6EXECUTIVESUMMARY7GWECGLOBALOFFSHOREWINDREPORT2023ExecutiveSummaryMarketstatusFeeding8.8GWofnewoffshorewindintothegrid–58%lowerthanthebumperyearof2021–stillmade2022thesecondhighestyearinhistoryforoffshorewindinstallations.The8.8GWofnewinstallationsbringsthetotalglobaloffshorewindpowercapacityto64.3GW,showingyear-on-year(YoY)growthof16%andrepresenting7%ofglobalcumulativeoffshorewindinstallations.Chinacontinuedtoleadglobaloffshorewinddevelopment,althoughitsnewinstallationsdroppedto5GWfrom21GWin2021–whichwasarecordyeardrivenbytheendofthefeed-intariff(FiT).TwoothermarketsreportednewoffshorewindinstallationsinAsia-Pacificlastyear:ChineseTaiwan(1,175MW)andJapan(84MW).Nointertidal(nearshore)windprojectsachievedcommercialoperationinVietnamin2022.ThiswasduetotheabsenceofaceilingpriceuntilJanuary2023tobeusedbyVietnamElectricity(EVN)tonegotiatePPAswithinvestorsfortheirrenewableprojects.Europeconnectedtheremaining2.5GWofcapacityin2022,withFranceandItalyeachcommissioningtheirfirstcommercialoffshorewindprojects.Despitetherateofinstallationslastyearbeingthelowestsince2016,Europe’stotaloffshorewindcapacityreached30GW,46%ofwhichisfromtheUK.Withtotalinstalledoffshorewindcapacityreaching34GWinAsia-Pacificin2022,Europerelinquisheditstitleastheworld’slargestoffshorewindmarket.Nevertheless,Europecontinuestoleadthewayinfloatingwind.Norwaycommissioned60MWoffloatingwindcapacitylastyear,bringingtheregion’stotalinstallationsto171MW,equalto91%ofglobalinstallations,followedbyAsia-Pacific(16.7MW,or9%ofglobalmarketshare).OutsideEuropeandAsia-Pacific,NorthAmericahas42MWofoffshorewindinoperationasoftheendoflastyear,contributing0.1%oftotaloffshorewindinstallations.MarketoutlookTheneedtoensuresecureandaffordableenergysupplieswhilemeetingclimatetargetshaspropelledwindpowerdevelopmentintoanewphaseofeverfastergrowth.Challengessuchasinflation,increasedcapitalcostandasupplychaincrunchhavecreateduncertaintyandforceddeveloperstoreviewtheviabilityoftheirprojects–even,insomecases,toterminatetheirofftakecontractsandstopdevelopingprojectsexpectedtobebuiltinthenextfiveyears.Buttheglobaloffshorewindmarketoutlookinthemediumandlongterm,from2028,stilllookspromising.Withacompoundaverageannualgrowthrate(CAGR)of31%to2027and12%to2032,newinstallationsareexpectedtosailpasttheTheData:2022wastheoffshorewindindustry’ssecond-bestyearFengZhaoHeadofStrategyandMarketIntelligence,GlobalWindEnergyCouncil2022thesecondhighestyearinhistoryforoffshorewindinstallations.GWEC.NET8ExecutiveSummarymilestonesof30GWin2026and50GWby2030.GWECMarketIntelligenceexpectsthatover380GWofnewoffshorewindcapacitywillbeaddedoverthenextdecade(2023-2032),bringingtotaloffshorewindcapacityto447GWbytheendof2032.However,onlyone-thirdofthisprojectednewvolumewillbeaddedin2023-2027,inpartbecausechallengingmarketconditionshavepushedbackoffshorewinddevelopmentinEuropeandtheUSinthenearterm.Annualoffshorewindinstallationcapacityisexpectedtoquadruplein2028from8.8GWin2022andpass60GWin2032,bringingitsshareofglobalnewoffshorewindinstallationsfrom11%in2022to30%by2032.Althoughtheglobalfloatingoffshorewindpipelinedoubledinthepast12months,topping240GW,GWECMarketIntelligencestillpredictsthatfloatingoffshorewindwillnotreachcommercialisationuntil2030.Takingintoaccountthehighercostoffloatingwindenergy,currentchallengingeconomicandfinancialconditionsandexpectedsupplychainbottlenecksinfloatingwindfoundationsandportfacilities,wehavedowngradedourglobalfloatingwindforecastto10.9GWby2030,42%lowerthanthepreviousyear’sprojection.GWECMarketIntelligence’snear-termoutlook(2023-2027)isprimarilybasedontheexistingglobaloffshoreprojectpipelineofprojectsunderconstructionandinthedifferentstagesofdevelopmentacrosstheglobe.Ourmedium-termoutlook(2028-2032)reflectscurrentdeclarednationalandregionaltargets.GiventheenergysystemreformpackagesstillunderwayinEuropeandotherregionsinresponsetoRussia’sinvasionofUkraineaswellascallsforradicalactiononclimatechange,itishighlylikelythatthesetargetswillincreasefurther.Ourten-yearforecastcouldberevisedupwardnextyearasaresult.However,thelast12monthssawagrowingimplementationgapbetweendeclaredtargetsandtherateofannualinstallations.Toaccommodateanexponentialgrowthinoffshorewindinstallationsandaconsequentaccelerationoftheglobalenergytransition,decisiveactiononleasing,permitting,marketdesign,supplychain,infrastructure–includinggridandportfacilities–aswellasregionalcollaborationremainofcrucialimportance.9GWECGLOBALOFFSHOREWINDREPORT2023Itisessentialthattheamountofseabedavailablefordevelopmentisalignedwithgloballong-termclimate(andoffshorewind)targets.ExecutiveSummaryTheoutlookfortheoffshorewindsector,asitseekstofulfilitsmajorroleinelectrifyinganddecarbonisingenergysystems,canbestbedescribedasexhilaratingandchallenginginequalmeasure.Globalopportunitiesandchallengesaremanifold,butbotharefacedthepressureoftimeandscaleinthefightagainstclimatechange.Underscenariosoutlinedbytheworld’sleadingenergyinstitutions,includingtheInternationalAgencyEnergy(IEA)andtheInternationalRenewableEnergyAgency(IRENA),achievingcarbonneutralityby2050–acommitmentsharedbyamajorityofcountriesandconglomerates–willcallforrapidandtremendousgrowthinoffshorewindinstalledcapacity.TheIEA’slatestroadmaprequiresoffshorewindannualinstallationstogrowninefold,from8.8GWin2022to80GWby2030,with70GWtobedeployedeveryyearbetween2031and2050.IRENAforeseesnearly500GWofcumulativeoffshorewindinstalledcapacityby2030initslatest1.5C-compliantscenario,andnearly2,500GWby2050.Thereisplentyofactivityacrossmarketsworldwide.Newoffshorewindinstallationsareexpectedtosailpastthemilestonesof30GWin2026and50GWby2030.Thesectorwillreachacompoundaverageannualgrowthrate(CAGR)of31%until2027and12%uptotheearly2030s.Trueaccelerationforfloatingprojectswillnotbeseenbefore2030.Althoughtheglobalfloatingoffshorewindpipelinedoubledinthepast12months,topping240GW,GWECMarketIntelligencepredictsthat–duetothehighercostoffloatingwindenergy,currentchallengingeconomicandfinancialconditions,andsupplychainbottlenecksinfoundationsandportfacilities–only10.9GWislikelytobebuiltgloballyby2030,whichis42%lessthanthepreviousyear’sprojection.EarlysuccessfactorsAnumberofcrucialelementshavetofallintoplaceifexponentialoffshorewindgrowthistobeachieved.Thisstartswiththeverybeginningoftheprocess,whenseabedisleasedtodevelopersforoffshorewinddevelopment.Itisessentialthattheamountofseabedavailablefordevelopmentisalignedwithgloballong-termclimate(andoffshorewind)targets.Asuccessfulleasingmodelwillfacilitatecollaborationbetweenthepublicandprivatesectorsfromtheget-gowhilecruciallyworkinginharmonywithwiderprioritiessuchascleanpowerproduction,economicgrowth,socialvaluecreation,jobgenerationandenergysecurity.Leasingframeworksshouldemphasiseboththeshort-termandlong-termimpactsofleasingfeesandallocation,sothatrevenuesforgovernmentsarenotgeneratedattheexpenseofenergycostsforconsumersorunsustainablepressureonsupplychains.Adedicatedleasingauthoritythattakestheleadonmanagingstakeholderconflictsandmaritimespatialplanning(MSP)concernswillstreamlineprocessesandpromoteefficientoperations.Beforeanoffshorewindfarmcanbebuilt,allthenecessarypermitsneedtobeinplace.ThesecantakedevelopersuptonineyearstoTheStory:AcceleratingOffshoreWind10ExecutiveSummaryobtain,asaglobalaverage,whichcanlockprojectsintooutdatedtechnologybythetimeconstructionbegins.Fast-trackproceduresthatlimitmaximumleadtimesforpermittingandsimplifytheprocessarebeingintroducedintheEUthroughtheRePowerEUplan,inresponsetotheenergycrisis.Thegoalisformemberstatestocommittoidentifying‘renewableaccelerationareas’wherepermittingprocessesarestreamlinedandshortened.Anotherimportantstepforwardwouldbewideradoptionoftheso-calledone-stop-shop(OSS)approach–alreadyusedinmatureEuropeanmarketslikeDenmark,theUKandtheNetherlands–guaranteeingnotonlyshorterleadtimesfortheconsentingprocessbutalsoareductioninuncertaintiesanddelays.CreatingsocialandeconomicvalueDiscussionsonenergypolicyandthesecurityofsupplyareoftenboggeddownbyargumentsfocusingexclusivelyoncosts.Whilethecostprofileofoffshorewindisalreadyfavourableincomparisonwithfossilfuels,pursuingthe‘cheap’angleisadangerousapproach.Currentmarketdesignandprocurementoftenencouragea‘racetothebottom’onwindpricing.This,coupledwithinflationarypressuresandauctionpricecaps,hasledtoasqueezeonprofitabilityforthewindindustrythatthreatenstheveryambitiousinstallationgoalsitisbeingaskedtodeliver.Offshorewind’struebenefitsarebestevaluatedwithaholisticsocioeconomiclens.Tothisend,governmentsandtheindustryhavetoworktogethertoreviewmarketdesignandofftakemechanismstoensureabalancebetweentheneedforaffordableenergy,deliveryofwidersocioeconomicbenefits,andasustainablesupplychain.Whenemployingnon-pricecriteria,includinglocalcontentrequirements,governmentsneedtobeawareofthebiggerpictureandavoidoverlyprescriptiverequirementsandrestrictivetradepracticesthatriskstiflinginvestment.Anincentive-basedapproachsuchasthelong-terminvestmentandtaxcreditsundertheUSA’sInflationReductionAct(IRA)willgivetheindustryconfidencetoovercomechallengesandscaleup.Anothersignificantsocietalbenefitthatoffshorewindbringsisthecreationoflong-termhighlyskilledjobs.Alreadyin2022,thecleanenergylabourforceoutnumberedemployeesinthefossilfuelsector,accordingtotheIEA.Local,sustainableopportunitiesforadiverseworkforcewillgrowexponentiallyasoffshorewinddeploymentsurges.ThegrandchallengetoconnectwindfarmsWidespreadelectrificationofhomesandbusinessesisreliantnotonlyonsufficientamountsofrenewableenergybutalsoonadequategridconnections.Acommonchallengeforlargeoffshorewindmarketsishowtoscaleupconnectionsinvolvingboththephysicalvolumeofoffshoreandonshorecablesandthenecessaryinfrastructure,whilereducingwaittimesforconnections.Earlierthisyear,Dutchstate-ownedtransmissionsystemoperatorTenneTawarded11contractsforNorthSeaoffshorewindprojectconnectionsforacombinedvalueof$25billion.Othersimilarprojectsarecurrentlyintheofftakingstage,butbecausethemajorityoflargerprojectsarelikelytobelocatedfurtheroffshore,gridconnectionsriskbecomingamajorbottleneck.Energyislands,meshedgrids,larger-capacityandsuperconductivecablesareallbeingexploredas11GWECGLOBALOFFSHOREWINDREPORT2023possiblesolutions.Thebottomlineremainsthatthefundamentalbuildingblockofoffshorewindisareliablegridsystem.Afit-for-purposesupplychainEquallycriticalistheissueofequipmentavailability.Supplychainsarestretchedinmanypartsoftheworld.Startingin2027,weexpectEurope’soffshorewindturbinenacelleassemblycapacitytostruggletocopewiththegrowthexpectedinEuropealone.IntheUSandAPACexcludingChina,itisimperativethatannouncedinvestmentsinnacelleassemblyquicklymaterialiseasproductioncapacityifdemandtowardsthelatterpartofthisdecadeistobemet.Adelicatebalancebetweendemandandsupplyexistsforkeyturbinecomponentsin2023–2025,withgapsexpectedtoemergeinthesecondhalfofthisdecadeifnofurtherinvestmentsaremade.WithChinacontrollingmorethan70%oftheglobalmarketshareforgearboxes,generators,slewingbearings,castings,forgings,towersandflanges,restrictivetradepoliciesproposedbytheEUandtheUSarealmostcertaintocreatebottlenecks.Thedemandforlargeoffshorewindturbineinstallationvessels(WTIVs)towardstheendofthedecade,coupledwithatrainedworkforcewithadequateoperationalknowhow,requiresregionalcooperationintheAPACregiontoensuretimelydeployment.ThiscooperationisespeciallycrucialinnewmarketssuchasIndia,thePhilippines,AustraliaandNewZealand.IntheUS,whereJonesAct-compliantWTIVswillbeneeded,onlyoneisunderconstruction.PlansfornewvesselswillhavetobeexecutedinthenexttwoyearstodeliverontheBidenAdministration’sambitionof30GWofoffshorewindby2030.MeetinggreatexpectationsOffshorewindisafast-growingsectorwithagreatfutureaheadandsomebigchallengestoovercome.Floatingoffshorewind,inparticular,isstillverymuchinitsinfancyandfacesasteeplearningcurveasitlookstoscaleupfromahandfulofdemonstrationprojectstogigawatt-scaledevelopments.Thereisnolimittothecontributionthatoffshorewindcanmaketotheenergytransition,noristhereanyshortageofambitiononthepartoftheindustry.Thethreatliesinthegrowinggapbetweenstatedtargetsandannualinstallations–andtheevenwidergapbetweenthecurrentpaceofgrowthand1.5C-compatiblevolumesofdeployment.Alloftheelementsoutlinedinthisyear’sGlobalOffshoreWindReportmustcometogethertoenablethesectortodeliveronthesegreatexpectations.GWEC.NET12ThegovernmentofDenmark,IRENAandGWECfoundedtheGlobalOffshoreWindAlliance(GOWA)inSeptember2022todrivetheuptakeofoffshorewindthroughpoliticalmobilisationandthecreationofaglobalcommunityofpractice.GOWAaimstocontributetoachievingaglobaloffshorewindcapacityofatleast380GWby2030and2,000GWby2050,with35GWbeingdeployedonaverageeachyearthroughthe2020sandaminimumof70GWannuallyfrom2030.GOWAenvisionsoffshorewindmakingasignificantcontributiontotheenergytransitionandtheachievementofthesustainabledevelopmentgoalsthroughlarge-scalerenewablepowergenerationbenefitingregions,nationsandcriticalsectorssuchasindustryandtransport.Tobenefitfromthesubstantialpotentialandopportunitiesderivingfromoffshorewind,itispivotalthatgovernments,private-sectoractors,internationalorganisationsandotherrelevantstakeholdersworktogethertoremovethebarrierstoscalingupinvestmentandsupplychains.GOWAisamulti-stakeholder,diplomaticandworkstream-basedinitiativethathaspublic-privatepartnershipasitsguidingprinciple.GOWAwillworkto:lRaiseambition–cruciallyambitionforimplementation–foroffshorewindamongstgovernmentsandotherpublicandprivatestakeholders.lSupportthecreationofpolicyframeworksandefficientoffshorewindvaluechainstobringnewandexistingmarketstomaturitythrough,forexample,thesharingofbestpracticesandcapacitybuilding.lCreateaninternationalcommunityofpracticetodriveactiononoffshorewinddeploymentasakeytoachieving1.5Cpathways.lWorktogetherasamulti-stakeholdergroupthatsupportstheroleoffshorewindwillplayinarenewables-ledenergytransition.Tosupportcountriesastheyseektodevelopoffshorewind,GOWAwilladdressthemajorbuildingblocksforthesector,suchasframeworkconditions,financialde-risking,systemintegrationandeconomicbenefits.Theseareallimportantdriverstoreducecosts,ensurecompetitivemarketpricesandcreateprojectpipelinesatcountryandregionallevel.TheGlobalWindEnergyAlliance(GOWA)AustraliaBelgiumColombiaDenmarkGermanyIrelandJapanTheNetherlandsNorwayPortugalSpainStLuciaStateofVictoriaUKUSAAtthetimeofwriting,GOWAhas14countrymembers:GOWAwilladdressthemajorbuildingblocksforthesector,suchasframeworkconditions,financialde-risking,systemintegrationandeconomicbenefitsGOWA13GWECGLOBALOFFSHOREWINDREPORT2023PART1:OFFSHOREWINDENABLERSSupportingSponsorGWEC.NETOffshorewindflourishesinanenvironmentwithlong-termsystemplanning,wherepoliciesandregulationsarealignedtodeliverclearobjectives.Alackofsuitableprojectsiteshasbeencitedasamajorobstacletotherapidscale-upofoffshorewind.Thisunderlinestheimportanceofleasing,theprocessthatdetermineshowmuchseabedwillbeallocatedtooffshorewinddevelopment.Theterm‘leasing’encompassesthecontractualprocessofgrantingseabedrightsforoffshorewinddevelopmentandoperation.Leasingprocessesareoverseenbythedesignatedseabedauthority.Whileapproachesvarydependingonthemarket,theyareprocedurallybasedonaframeworkthatisadaptedtonationalpreferences.Leasingterminologyvariesbetweenmarkets;‘leasing’isalsooftenreferredtoasa‘concession’.Awell-executedleasingframeworkmustensureasteadypipelineofprojectsandaimtoattracttheparticipationofexperiencedactors(suppliers,investors,developers)tothemarket.Theseactorswillbringvaluableexpertise,resourcesandextensivemarketknowledgetodevelopsuccessfulprojectsandbekeyfacilitatorsintheglobalexpansionoftheoffshorewindsector.GWECfindsthat,whenestablishingasuccessfulleasingframework,theincorporationofpragmaticMarineSpatialPlanning(MSP)processescansignificantlyenhanceanefficientrolloutofoffshorewinddeployment.NotonlydoMSPframeworksplayacrucialroleinmanagingmarinespacesandresources;theycanalsoaddressupstreamenvironmentalandsocialconsiderationsensuringaholisticapproachtooffshoreactivities,generatingasustainableblueeconomy.1TheearlyengagementofstakeholdersintheMSPprocesscanmitigatepotentialfutureconflictandstrikeabalancebetweenvarioussectoralpriorities.2MSPcanserveasavaluabletoolforeffectiveimplementationofnationalclimatetargets,ensuringthatthetargetsettingprocessexplicitlyconsiderstherequirementsforscalingupoceanenergy.ByaligningMSPwithclimateobjectives,countriescanstrategicallyplanandallocateseabedareastosupportthegrowthofoffshorewindwhilstalsoremainingcompatiblewithclimatecommitments.314Part1:OffshoreWindEnablersLeasingLegislatingnationalclimatetargetsConductpragmaticandproportionalMSPEstablishleasingauthorityDetermineleasingandrevenuesupportstructurePutinplacerelevantlegislationImplementfirstleasingcompetition123456Leasingframeworkmilestones1.WorldBank.2022.https://documents1.worldbank.org/curated/en/099813206062230702/pdf/IDU0afe34d600494f04ee009e8c0edf0292c1a96.pdf2.IOC-UNESCO/EuropeanCommission,2022.https://www.mspglobal2030.org/wp-content/uploads/2022/11/MSProadmap2022-2027.pdf3.IRENAandOEE.2023.https://www.irena.org/Publications/2023/Mar/Scaling-up-investments-in-ocean-energy-technologiesGWECGLOBALOFFSHOREWINDREPORT202215Leasingframeworkmilestones:1.Raisethepoliticalpriorityofclimateactionbylegislatingnationalclimatetargetsthataccountforoffshorewindsectorgrowth,e.g.,developinganationaloffshorewindstrategy2.ConductpragmaticandproportionalMSPtodesignatesuitableareasfordevelopmentwithhighwindresourceandmanagementofpotentialstakeholderconflict3.Establishleasingauthority4.Determinepreferredapproachtoleasingandrevenuesupport5.Putintoplacerelevantlegislation6.ImplementfirstleasingcompetitionDifferencesinapproachOffshorewindmarketshaveevolvedtoconformtotwoprimaryframeworks:acentralised,one-stageapproach,andadecentralised,two-stageapproach.Theseframeworksarenotrigidlyfollowed,andtheUSAandTaiwanhaveadoptedahybridframework.Inthecentralisedframework,oneprocessisusedtosecuretheseabedleaseandthepowerpurchasearrangements.Thegovernmentwillconductsurveystodeterminesitefeasibility,completeanEnvironmentalandSocialImpactAssessment(ESIA)andgainconsentforprojectdevelopment.Thegovernmenthastheauthoritytospecifywindfarmsitesandcertaindesignelements.ThisapproachhasbeenadoptedinGermany,DenmarkandtheNetherlands.Inthedecentralisedframework,thegovernmentwilluseMSPtoidentifylargeareaswithinwhichtoconducttheleasingrounds.Thedeveloperwillthendecideprojectsiting,conductsitesurveyingandtheESIA,andgainprojectconsent–allofwhichincurextracost.ThisapproachhasbeenusedintheUK.Eachmodelofferssomeadvantages,dependingonthedesiredgoalsoftheleasinground.Underacentralisedmodel,thegovernmenthasmorecontroloverprojectplanningbutcouldexposedeveloperstoahigherdegreeofpolicyriskorinterference.Thereisalsoariskthatgovernmentsmaynotbeadequatelyresourcedtoundertakethecomplextechnicalfunctionsrequiredtoimplementthecentralisedmodelsuccessfully.ExperienceddevelopersmaybebetterpositionedtomakeinformeddecisionsregardingprojectHowleasesareallocatedAdesignatedbodyshouldberesponsibleforthetenderandawardofseabedleases.InDenmark,forexample,itistheDanishEnergyAgency(DEA),whileintheUSitistheBureauofOceanEnergyManagement(BOEM).Leasesareawardedthroughthreemainmodels:non-competitive,competitive,andopen-door.Non-competitiveleasingmodelscanbeemployedforpilotprojectsandinemergingmarkets.Theseabedauthoritycandirectlygranttheleasetothedeveloperthroughnegotiation.Competitiveleasingmodels,wheredevelopersbidinacompetitivetenderoverseenbytheseabedauthorityandtheleaseisawardedtothemostsuitablebidder,havebeenadoptedbysomemarketsastheymature.TheUS,theNetherlands,theUKandGermanyallusecompetitiveleasingmodels.Therearetwofurthercompetitivebiddingprocesses:competitiveauctionandcompetitivebilateralbidding.Theopen-doormodelallowsdeveloperstofreelysubmitleaseapplicationsfordesignatedseabedareasattheirdiscretion.ThisapproachwaspioneeredbyDenmark4buthassincebeenputonholdpendingareviewofEUlaw.Thedesignatedbodyisresponsibleforassessingtheindividualbids/applicationsfromdevelopersagainstapredeterminedsetofcriteriathatvarybymarketbuttypicallyincludefinancialelementssuchashighestseabedbidorloweststrikeprice.Asmoredevelopershaveenteredthemarket,solelyfinancialcriteriaareshiftingtoincludemorequalitativemetrics.4.https://ens.dk/en/our-responsibilities/wind-power/offshore-procedures-permitsGWEC.NET16OffshoreWindEnablersdevelopmentandtheassociatedrisk.Adecentralisedapproachmaybemoreappealingasdevelopersaregiventhefreedomtomakemoreprojectdecisions.Whendecidingonanapproach,thereisaconstantbalancetobestruckbetweenwheretheriskisplacedandwhoisbestplacedtocarrythisrisk.PolicyrecommendationsGWECseestheurgentneedforanalignmentoftheamountofseabedleasedwithlong-termclimatetargets.ForaParis-compliantnetzeroby2050scenario,IRENAestimatesthatfixedandfloatingoffshorewindmustscaleupfromitscurrent64.3GWcapacityto380GWby2030–enrouteto2TWin2050.Leasingmustinvolveacollaborativeeffortbetweenthepublicandprivatesectors.Earlydialogueshouldaimtocreateatransparentandvisibleleasingframework,ensuringthattheneedsoftheprivatesectorandtheabilitiesofthepublicsectoraretakenintoaccount.Aleasingframeworkthatisattractivetodeveloperswillengagetheparticipationofexperiencedactors(suppliers,investors,developers)thatbringvaluableexpertise,resourcesandextensivemarketknowledgetodevelopsuccessfulprojectsandbekeyfacilitatorsintheglobalexpansionoftheoffshorewindsector.Choosingaleasingmodelrequirescarefuldeliberationontheshort-termandlong-termconsequencesassociatedwithleasingfeesandallocation.Leasingframeworksshouldemphasisecomprehensiveleasetermevaluations.Anuncappedcompetitiveauction,forexample,mayincreaseshort-termrevenuesforthegovernmentbutcanincreasethecostofenergytoconsumersandcausefinancialpressuresforsupplychainstability.Leasingtermsshouldtakeintoaccountcoherentgovernmentpriorities.Developmentoftheoffshorewindsectorcanencourageeconomicgrowth,createjobsandenhanceenergysecurity.Havinganopendialoguebetweenstakeholderscanensurethatleasingframeworksfunctioninharmonywiththesewiderpriorities.Aspartofasuccessfulleasingprocess,GWECrecommendstheintegrationofpragmaticandproportionalMSPtoaidtheachievementofanefficientrolloutofoffshorewinddeploymentbymitigatingenvironmentalandsocialconcernsthroughbetterinteractionwithstakeholders;implementingnationalclimatetargets;anddesignatingsiteswiththebestwindresources.Theestablishmentofadedicatedleasingauthoritytoproactivelyaddressanystakeholdermanagementissuesinthemarinespaceisessential.Creatingaspecialisedbodythatgrantsconsentandmanagesconflictensuresanefficientoperationandcanstreamlinetheprocess.GWECrecommendstheintegrationofpragmaticandproportionalMSPtoaidtheachievementofanefficientrolloutofoffshorewindGWECGLOBALOFFSHOREWINDREPORT202217Globally,offshorewindprojectstypicallytakeuptonineyearstomovefromtheearlydevelopmentstagetofullcommissioning.Thebulkofthistimeisspentinthepermittingandconsentingstage,withtimelinesextendingevenfurtherwhentherearebarriersordelaysinthepermittingprocess.Generally,oncepermitted,large-scaleoffshorewindprojectscanbeconstructedveryquickly–typicallyintwoyears,dependingontheprojectsize.6Elongatedpermittingtimeframescanresultinprojectsreachingtheconstructionstagewithoutdatedtechnologyintheirplans,includingwindturbinemodelsthatarenolongermanufacturedatoptimalscale.Ifadeveloperappliestomodifytheoriginalprojectdesigninordertousenewertechnology,itrunstheriskoffurtherdelays.Doneright,effectivepermittingregimescanunlocksignificantamountsofoffshorewindcapacity,enablingittocontributetoeconomicgrowth,aswellastotheprovisionoflarge-scale,homegrowncleanelectricity.Holisticapproachestopermittingcanalsohelpcapturebenefitsandopportunitiesrelatedtobiodiversityandnatureconservation,ensuringthewindindustrycontinuestoleadindeliveringpositivesocioeconomicoutcomesforallcommunities.Onewaytoreducemaximumleadtimestopermitoffshorewindisthroughfast-trackprocedures.TheEuropeanCommissionhasintroducedtheRePowerEUplaninresponsetotheenergycrisis,whichcallsforrenewableenergyprojectspermittingtobe“drasticallyaccelerated”.Tothatend,memberstateswilldesigndedicated“renewableaccelerationareas”withshortenedandsimplifiedpermittingprocesses.Land,seaorinlandwatersareaswouldbechosenbecausetheyareparticularlysuitableforspecificrenewableenergytechnologiesandpresentlowerrisksfortheenvironment.Protectedareasshouldbeavoided,forexample.Forrenewableaccelerationareas,theEUCouncilandEuropeanParliamentcametoaprovisionalagreementon30March2023allowingthreeyearsforPermitting6.JointStatementbytheGlobalWindEnergyCouncilandtheGlobalSolarCouncilontheOccasionoftheG20InvestmentForumonEnergyTransition(2022)https://gwec.net/wp-content/uploads/2022/08/Joint-Statement-by-GWEC-and-GSC-Final-Aug-2022.pdfPart1:OffshoreWindEnablersGWEC.NET18GWEC.NET18offshoreprojectsandtwoyearsforonshoreprojects,includingenvironmentalimpactassessments.Indesignated“renewableaccelerationareas”,thedeadlinesarereducedbyoneyearand,inprinciple,noenvironmentalimpactassessmentisrequired.Indulyjustifiedextraordinarycircumstances,theperiodmaybeextendedbyuptosixmonths.Toreduceleadtimesforoffshorepermitting,countriesareexploringmoreinnovativeandnewersupportingschemes.TheUKhasbeenexertingeffortstoshortenthepermittingtime.AnnouncedinJune2023,theOffshoreWindEnvironmentalImprovementPackage(OWEIP)aimstosupporttheaccelerateddeploymentofoffshorewindbyreducingconsentingtimefromuptofouryearstooneyear.TheconceptofaOne-Stop-Shop(OSS)–asinglecontactpointforasmoothandadministrativelyleanprocessfromconsentingthroughtodecommissioning–haslongbeenusedinmatureEuropeanmarketslikeDenmark,theUKandtheNetherlands.TheOSSforprojectpermittingnotonlyspeedsuptheconsentingprocess,butalsoreducesuncertaintiesanddelays.Long-termplanning,alongsideastableandsupportivepolicyframework,hasbeenfundamentaltothesuccessofDanishoffshorewinddevelopment.TheDanishEnergyAgency(DEA)runsoffshorewindtendersthroughanopen-door-procedure.7Theprojectdevelopertakestheinitiativetoestablishanoffshorewindfarm.Thefirststepisfortheprojectdevelopertosubmitanapplicationforalicensetocarryoutpreliminaryinvestigationsinthegivenarea.Theapplicationmust,asaminimum,includeadescriptionoftheproject,theanticipatedscopeofthepreliminaryinvestigations,thesizeandnumberofturbines,andthelimitsoftheproject’sgeographicalsiting.Inanopen-doorproject,thedeveloperisresponsibleforcoveringthecostsofconnectingthegridtoland.AspartoftheOSSconcept,theDEAinitiatesahearingofothergovernmentbodiestoclarifywhetherthereareothermajorpublicintereststhatcouldblocktheprojectbeforeprocessinganapplication.Basedontheresultofthehearing,theDEAdecideswhethertheareaintheapplicationcanbedeveloped,andintheeventofapositivedecision,itissuesanapprovalfortheapplicanttocarryoutpreliminaryinvestigations,includinganESIA.Electricityproducedbyoffshorewindfarmsundertheopen-door-procedurewillreceiveapricepremiumof25øre/kWh($0.36/kWh)ontopofthemarketprice–thesameasonshorewind.Ifthemarketpriceaddedtothesubsidyexceeds58øre/kWhthesubsidywillbereducedaccordingly.Whiletheopen-doorpolicyhascreatedgreatopportunitiesfordevelopersinacquiringoffshorewindprojects,theDanishgovernmentdecidedinJune2023tosuspendprojectsunderthisscheme,fearingitmaybreachEUrules.Thecountry’snewmarineplanwillnotallocatespaceforfutureoffshorewindfarmsundertheopen-doorscheme,effectivelyshelvingthemajorityofprojects.Atotalof33projectswereunderassessmentaspartofthescheme.Nineofthependingopen-doorprojectshadpreviouslybeenassessedasapproved,howevertheremaining24willbedeniedapreliminaryinvestigationpermit.Casestudy:Denmark’sopen-doorpolicy7.https://ens.dk/en/our-responsibilities/wind-power/offshore-procedures-permitsPart1:OffshoreWindEnablers19GWECGLOBALOFFSHOREWINDREPORT2023GWECGLOBALOFFSHOREWINDREPORT202219InDecember2021,Spainpublisheda‘RoadmapforthedevelopmentofoffshorewindandmarineenergyinSpain’,whichlaysthefoundationsforastate-levelframeworkfortheorderlydeploymentofoffshorerenewablesthathighlightsthreekeyelements:spatialplanning,gridconnectionandbusinessmodel.Theroadmappromotestheuseofmarinespatialplanning(MSP)tocatalysepermittingactivities.Italsosupportscoordinatingtheaccessandconnectionframeworkandnewgridmanagementmodelsandadaptingtheadministrativeframeworkforthepermittingofoffshorerenewableinstallations.InJune2022,theMinistryforEcologicalTransitionandtheDemographicChallenge(MITECO)launchedapublicconsultationonthedesignoftheregulatoryframeworkforoffshorewindandmarineenergyfacilities.Theaimoftheconsultationwastoengage,fromdayone,publicandprivateagents,thewindandoffshoreenergysectorandtheothersectorsthatusetheseafortheiractivities,includingfishing,aquacultureandnavigation.Spain’sMaritimeSpatialPlanning,approvedinMarch2023throughRoyalDecree150/2023,identifiesthemostsuitablemarineareasforthefuturedevelopmentofoffshorewindfarmsatthesametimeasintegratinggeneralinterestplanningobjectives,horizontalmulti-sectoralobjectivesandseekingsectoralconvergencesandsynergies.ThiscomplexMSPexercisewasachievedthroughahighlyparticipatoryprocess.Alltheministerialdepartmentswithsectoralresponsibilitiesinthemarineenvironment,thecoastalAutonomousRegions,representativesofallinvolvedsectorsandcivilsocietycontributed.TheprocessresultedintheuseofMSP(POEMbyitsSpanishacronym)asazoninginstrument,identifyingthemostsuitableareasforthedevelopmentofoffshorewindenergybasedontechnicalandenvironmentalfeasibility.Additionally,futureelectricalevacuationelectricityexportsfromtheoffshorewindfarmsthroughcoastalevacuationnodesinthevicinityoftherelevantareashavebeenconsideredintheElectricityTransmissionNetwork(ETN)plansfor2021-2026andwillbecoveredinmoredetailinthenextETNplanningcycle.Casestudy:Spain’suseofMSPPart1:OffshoreWindEnablersGWEC.NET20CostaRicadoesnothaveadedicated‘one-stopshop’forprocessingoffshorewindprojectsbuthasdevelopedasimilarplatformforenergyprojectsofnationalinterest,knownastheVentanillaÚnicadeInversión(VUI),orsingleinvestmentwindow.BusinessescanusethedigitalVUItosubmittheirapplication,requestaconstructionpermitandsubmitenvironmentalassessments,amongothers.Theplatformhasdrasticallyreducedtheprocessingtimeforpermitsfrom406toapproximately35–45days.CostaRicahascommittedtoleveragingthisplatformforoffshorewindprojectsandwillbeengagingwithrelevantstakeholdersandinvestorsinthenearfuture.Casestudy:AsinglecontactpointinCostaRica20InDenmark,theActonPromotionofRenewableEnergydefinestherules,requirementsandproceduresforissuinglicencesforoffshorewinddevelopment.AccordingtotheAct,theDanishEnergyAgency(DEA)hasthemandatetobothplanandissuepermitsforoffshorewindprojectswithinterritorialwatersandDenmark’sExclusiveEconomicZone(EEZ).Thepermitcompilesinformationfromallrelevantauthorities,withtheDEA‘championingtheprojectthroughthepermittingprocess.DEApreparesandgrantstherequiredlicencesthroughaniterativeprocessinvolvingcontributionsfromotherauthoritiesinordertomitigateconflictinginterests.Oncetheconcessionisgranted,theDEAremainsasinglepointofcontactfordevelopersrequiringassistanceonissuesrelatedtothegrantedlicensesandprocedures.LearningfromEuropeanbestpractices,othercountriesarenowstartingtoadoptthisapproach.In2022,BrazilintroducedanOSSsystemthroughaninformationportalthatmanagesoffshoreareasusedforpowergeneration.Similarly,8.https://www.evoss.ph/Home/About#:~:text=The%20Energy%20Virtual%20One%20Stop,involved%20in%20the%20approval%20process.21GWECGLOBALOFFSHOREWINDREPORT202321GWECGLOBALOFFSHOREWINDREPORT2022IntheNetherlands,theupcomingpermitthatwillbegrantedforthe4GWoffshorewindprojectIJmuidenVerwillincludecriteriatostimulatecircularityandinternationalresponsiblebusinessconduct.TheNetherlandsisdraftingalegislativeamendmenttoincludethesecriteriainfuturepermitsforoffshorewindfarms.ThecriteriaforresponsiblebusinessconductwillalignwithUNprinciplesforhumanrightsandbusinessandOECDguidelinesformultinationalenterprisessuggestingthatcompaniesperformhumanrightsandenvironmentalduediligencefortheirinternationalactivities,includingintheirsupplychain.Companiesareurgedtotakeactioninmulti-stakeholdercooperationtopreventormitigaterisks,implementacomplaintmechanismandreportpubliclyontheirduediligenceprocesses.Forcircularity,thecriteriawillbeinlinewiththeEU’sSustainableProductInitiative,enablinggovernmentstointroduceproductrequirementsconcerningrecyclability,reusability,lifetimeextension,phasingoutofhazardoussubstancesandthelevelofsecondaryandrenewableresourcesusedwhenmanufacturingnewproducts.TheEuropeanCommissionisworkingonintroducinglegislationandregulationsforresponsiblebusinessconductandcircularity.TheNetherlandsisanticipatingthislegislationbyalreadyincludingthesecriteriainitsoffshorewindpermits.Casestudy:InnovativepermittingschemeintheNetherlandsthePhilippinesissuedanexecutiveorderin2021toimplementtheEnergyVirtualOne-StopShop(EVOSS)8,anonlineplatformtocoordinatedataandinformationforenergyprojectapplications.InVietnam,anOSSmodelhasbeenproposed,groundedintheNationalSteeringCommitteeonMarineEconomicDevelopmentestablishedin2020,chairedbytheprimeminister.SouthKorea’sNationalAssemblyhasbeendiscussingsinceMay2021aproposedOSSBilltomakeprogressonthecurrentsystem,whichrequiresoffshorewinddeveloperstospenduptotenyearsorlongerconsulting29piecesoflawacrosstenministries.However,thisBillremainedindraftformduetothefishingcommunity’sconcernsandopposition.TwonewOSSbillswereproposedinFebruary2023bytherulingPeople’sPowerParty(PPP)andtheDemocraticParty(DP).Theyoutlinethegovernment’sintenttomovetoacentralisedsystembutarelackingsufficientinformationandclarityregardingsiteselectionandallocationofoffshorewindprojects.GWEChopesthattheSouthKoreangovernmentwillsooncomeupwithsuitableschemestoensuretheco-existenceofoffshorewindfarmsandfisheryandenhancetheclarityofthetwoBills.Part1:OffshoreWindEnablersGWEC.NET22GrowingPains:Thestatusofthewindindustryin2023MajorwesternOEMsinthewindsectorhavefacedaprofitabilitycrunchoverthelastfewyears,causingthemtoretrenchandselectivelywithdrawfromsmallerorslower-movingmarkets.Amidthesechallenges,theyareraisingtheirprices.Thisisdue,inlargepart,torecentspikesincommodityprices,generalinflationacrosstheentiresupplychain,highlogisticscostsandhigherinterestratesimplementedbycentralbankstocombathigherinflation,togetherwiththerealisationthatparticipatinginslow-developingmarketscantieupcrucialhumanandfinancialcapitalwithinsufficientreturns.Ontheprojectdevelopmentside,developersare‘highgrading’developmenteffortsandwithdrawingfromcertaincountriesorprojects,orevenoptingoutofmarketsandauctionswheretheyperceiveanimbalanceinriskversusreward–asinrecentannouncementsregardingØrsted’swithdrawalfromVietnam,VattenfallBoreasprojectsintheUK,andtheUSAvangriddevelopment.Thereisamassivepoolofglobalandlocalcapital,increasinglydrivenbyclimatefinanceandESGinitiatives,readytodeployintotheoffshorewindsectorbutatthesametimethereisalackofproperlystructured,fullypermittedandde-riskedprojectswithviableofftakers.Therearemanyreasonsforthislackofbankableprojects,butpermittingbottlenecksandinadequategridinfrastructureareatthetopofthelist.Astheyseektocombatclimatechange,countries,regions,companiesandfinancialinstitutionsaroundtheworldaresettingaggressivenetzeroandenergytransitiontargets.Ifbusinessprofitabilityandstabilityarenotpresentinthewindsector,however,thesetargetswillbecomeincreasinglyunlikelytobemet.GWECbelievesthattheindustryisexperiencingthegrowingpainsofalarge,highcapitalcostinfrastructurethatexperiencedoveradecadeofheatedmarketgrowthratherthanarealcrisis.Itisworthconsideringafewfactorsthathaveledustothisstage,andwhatotherindustrieshavedoneinthepasttomanagesimilarchallenges.TheindustryisstillcomparativelyyoungAllothermajor,highcapitalcostinfrastructuresectors–energy,petrochemicals,mining,portsandothers–arerelativelymatureat100+yearsoldandthereforebenefitfromafairlyclearunderstandingoftheneedsoftheindustrybypoliticians,policymakersandregulators,aswellasbytheindustryplayersthemselves.Regulation&MarketDesignGWECbelievesthattheindustryisexperiencingthegrowingpainsofalarge,highcapitalcostinfrastructurethatexperiencedoveradecadeofheatedmarketgrowthratherthanarealcrisis.23GWECGLOBALOFFSHOREWINDREPORT2023Thosesectorshavealsolivedthroughsignificantvolatilityinthepast.Forexample,WestTexascrudeoilpriceshaverangedbetween$17and$120perbarreloverthelasteightyears.Howdotheseindustriesmanagewithinsuchvolatilepricingstructures–similartowhatthewindindustryisnowfacingintermsofsupplychaininputsandcriticalmaterials?Theydoseveralthings:lTheyexpectvolatilityandbuildthoseexpectationsintoeverythingtheydoacrosstheirvaluechainthroughhedging,risksharinginofftakecontracts,supplychainresilienceanddiversification,sophisticatedcommoditiesmarketmonitoringandhedging,andsoforth.lContractswithbuyersareoftennegotiatedsuchthathigherpricescanbepaidtoensurelessvolatility,and/orwithpricecapsandpricefloorstoprotectbuyersandsellers,respectively.Thetermsofthesecontractsswingsubstantiallydependingonmarketconditions(‘buyersmarket’vs‘sellersmarket’),buttherearealmostalwayselementsofrisk-sharingbetweenbuyersandsellers.Whiletherecentpricevolatilitymaynothavebeenanydifferentfrompreviousperiodsofvolatility,itisthefirsttimethatthemodernwindindustryhasbeensubjectedtosuchvolatileconditions.Thepost-COVIDdemandsurgethatcausedgloballogisticsandsupplychaindisruptionswasremarkable,andthesubsequentinvasionofUkrainebyRussiacausedmassivedisruptionsintheglobalgasmarket,aswellasgrainandothermarkets.Furthergloballogisticsbottlenecksmadethisa“perfectstorm”thatfew,ifany,couldhavepredicted.Theimpactsweredevastatingglobally,especiallyinemergingmarketswhicharelessabletoabsorbhighercostsforeverythingfromgraintogas.Theimpactonayoungwindindustryofsuchmassivedisruptionswasunpredictable.Buttheresponsefromtheindustrywasverypredictable:pulloutofmarketsand/orprojectsthatarenotprofitable,rationalisesupplychains,increaseprices.Thisisanunderstandablecontractionafteradecadeofbreakneckmarketgrowth.AsnotedinarecentFinancialTimesarticle,“developers’willingnesstogetoutofunprofitableprojectsisasignofdisciplineastheindustrymatures—butmayslowdownthepaceoftherollout.”However,theworldnowneedsmassiveinvestmentsinwindtomeetnetzerocommitmentsandslowclimatechange.Howcantheindustryworkwithotherstosecureanoffshorewindprojectpipelinethatcansupportnetzeroandotherclimatetargets?Andwhatcanwedotomovetheindustryforwardontoamoresustainablepathwheretheindustryissupportedinacceleratingtheenergytransition,compensatedatareasonablelevel,andcontributingtothepublicgoodinnumerousways?Wheretheindustryistoday:Theindustryiscomparativelyyoung.Asitemergesfromglobalcrises,suchastheCOVID-19pandemicandtheUkraineinvasion,ithasbeensignificantlyimpactedbylowprofitabilityandchallengingmarkets.Assuch,itisdiscipliningitselfandPart1:OffshoreWindEnablersGWEC.NET24withdrawingfrommarketsandprojectsthatarenotattractiveorprofitableenough.Theindustryisalsoexamininghowitapproachestheissueofeverbiggerturbineswiththeneedforeconomiesofscale,andotherwaystobuildinmoreefficienciesinthevaluechain.Whereitneedstogo:Massiveamountsofinvestmentarerequiredtomeetvariousnetzeroandotherclimatetargets.Basedonthecurrentprojectedtrajectoryofwindinstallations,itisunlikelythatmanytargetswillbemet.Whatcanbedone:Therearesomeconditionsthatareneededforanylarge,highcapitalcostindustrytothrive.Keytothisistheroleofgovernment:Wherecanitbesupportiveandproductive?Whenisitbesttoleavedecisionsandinvestmentstotheprivatesector?Predictabilityandvisibility:Thisiscriticalforanyindustry,asbusinesseswillinvestinsupplychainsanddevelopprojectswhentheyknowthereisgoingtobearelativelyconstantflowofprojects.Reasonablereturns:Inanyindustry,businesseswanttomakereasonablereturnsfortheirshareholders.Theywillalsoexpecthigherreturnswhenrisksarehigher,henceabalancedapproachtorisk-sharingisessentialtoensureaffordability.Thereisalwaysatensionbetweeninvestors,whowantreasonablereturns,andgovernments,whodesirelowprices–throughapproacheslikereverseauctions–andenergysecurity(itisuncertainwhetherauctionsdeliverthis).Compromiseswillneedtobemade.Clearroutetomarketforprojects:Isitpossibletogetthenecessarybusinesslicencesandprojectpermitsinareasonableamountoftime?Isitclearwhichpermitsarerequiredandwhocanprovidethem?Aremonetisationoptionsthroughauctions,corporatePPAsorothermeansclear?Isgridplanningadvancedenoughtoprovideclarityonwhenthegridwillbereadytoconnectaproject?Considerationofthesequestionscanhelpcreateaclearroutetomarket.Essentialinfrastructureandworkforce:Offshorewindneedsgrids,ports,transportcorridorsandsupplychainfacilities,aswellasaskilledandtrainedworkforcetobuild,operateandmaintainwindfarms.Ifthesearenotavailable,arethereimplementationplanswithreasonablesupportandplanningfromgovernment?Dotheplansincludeoptionsforprivateinvestorstoprovidethecapital?Bankableofftakemechanisms:Aretheofftakers–betheyutilities,corporatesorothers–abletoprovideviableofftakemechanisms/contracts/PPAssuchthattheprojectscanaccessinternationalfinancewithoutundueriskofdefault,counterpartyrisk,curtailmentandotherrisks?Taxandotherincentives:Ifgovernmentswanttoencouragewindandotherrenewablesandstoragetechnologiestomeetnetzeroandothercommitments,theymayneedtoprovideconcreteincentivestoattractinvestments.ThinkoftheUSA’sInflationReductionActandotherincentivemechanisms.TheroleofREPowerEUcanalsobeconsidered.WhathappensifeverycountryunrollsanIRA-sizeindustrialpolicypackage?Willitpotentiallyintroduceadisincentiveforpublicandprivateactorstocoordinateratherthancompeteforresourcesandsupplychaininvestments?Thisisanongoingdebate,andwhileGWECdoesnothavealltheanswerstoday,ourapproachistoencouragePart1:OffshoreWindEnablers25GWECGLOBALOFFSHOREWINDREPORT2023collaboration.Giventhe‘publicgood’natureofwindenergyanditscrucialcontributionstoajustenergytransition,GWECencouragesgovernmentstoworktogetherandfocusmoreonincentive-basedapproachestofosteringmarketgrowthratherthanprescriptivepolicies,strictlocalcontentrequirementsandotherpoliciesthatmayinhibitcollaboration.Collaborationacrosstheboard–betweenindustryandgovernment,OEMsanddevelopers,governmentsacrossandwithinregions,withinsupplychains–willincreasecommonunderstanding,buildtrust,encouragetechnologytransferandtheefficientflowofresources.Itwillalsoharmoniseapproachestomarketdevelopment,risk-sharinginthevaluechainandinvestmentprotocol.Alloftheseoutcomeswillhelptoadvancethegrowthofoffshorewindatthepaceandscalerequiredtomeetnetzerocommitmentsanddelivertheglobalenergytransition.MovingfromcosttovalueOffshorewindisascalable,affordableandcommerciallyavailableenergytechnology.Withtremendouscapacitytoproducepower,offshorewindhassignificantpotentialtorapidlydisplacefossilfuels,deliveringeconomicgrowthandbolsteringenergysecurity.Afteradecadeofcostreductions,offshorewindisataninflectionpointwithahighlycompetitivelevelisedcostofelectricity(LCOE)thatis$3/MWhbelowthatofcoaland$18/MWhbelowthatofgas.9Thismeansthattherateofpricereductionsthatwehaveseenislikelytoslow.Despitethis,thecostprofileofelectricitygeneratedfromwindenergyversuselectricitygenerationfromfossilfuelsremainsfavourable–ithasbeenforsometimeandwillcontinuetobe.Becausetheoffshorewindsupplychainissubjectedtothefluctuationofcommoditypricesglobally,fluctuationsinthecostofwindhavetoreflecttheunderlyingcostofcapital,commoditycostsforsteel,copperandothermaterials,andlogisticscosts.Thepasttwoyearshaveshowntheworldhowvolatilethecommoditymarketsareduringaglobalcrisis.Byembeddingmarketandregulatoryimbalancesthatfavourprojectswiththelowestbids,governmentsacrosstheworldhaveencourageda‘racetothebottom’onwindpricing.This,combinedwithinflationarypressures,hasexacerbatedthesqueezeonprofitabilityforthewindindustry.Limitedprofitabilityhasinturnledtounderinvestmentinmanufacturingcapacityglobally,creatingthelikelihoodofsupplychainbottleneckspost-2026.10Tomeettheincreasingoffshorewindambitionsglobally,massiveinvestmentsareneededtobuilduptheoffshorewindsupplychainanddeployoffshorewindprojectsatthepaceandscaleneededtoachievethe380GWofcumulativecapacityby2030projectedunderIRENA’s1.5Cscenario.11Torestoreandbuildahealthyoffshorewindindustry,governmentsandindustrymustensureabalancebetweentheneedforaffordableenergy,deliveryofwidersocioeconomicbenefitsandasustainablesupplychain.Severalcountriesaretryingtocapturegreatersocioeconomicvalueby9.2H2022LevelizedCostofElectricityUpdate(BNEF)https://about.bnef.com/blog/2h-2022-levelized-cost-of-electricity-update/10.GlobalWindReport2023(GWEC,2023)11.Scaled-upInvestmentsandEnablingFrameworksWillUnlockOffshoreRenewablesPotential(IRENA,2023)Part1:OffshoreWindEnablersGWEC.NET26includingnon-pricecriteria(NPC)inprojectselection.12NPCcanbebroadlycategorisedintofourgroups13:1.Environmental/Ecological-sustainablepracticeinconstruction,operationanddecommissioning2.Technological/Innovation-adoptingnewtechnologiesorintegratingdifferenttechnologiestoincreaseprojectefficiencyandprovideadditionalvaluecreation3.SupplyChainDevelopment-developingskillsandmanufacturingcapabilities4.OtherBenefitstoCommunities–suchas,enhancinglocalcommunityengagementandwelfarethroughvariousinitiativesTheinclusionofNPCpresentsbothopportunitiesandchallengesforwindindustrystakeholders.Ithastobecarefullyconsideredandintegratedconsideringthestageofdevelopmentofdifferentoffshorewindmarkets.ItalsositsalongsideincentivemechanismsthatcanenabledifferentstakeholderstointroduceandimplementNPC.GovernmentsareunderpressureandgrapplingtointroduceandimplementNPCsthatareeffectiveandbalancetheneedsoflocalandinternationalstakeholders.Developersarefacedwithadouble-edgedswordwhennavigatingtheincreasinglycomplexbiddingprocessesincorporatingNPCsthathaveproliferatedinmanyjurisdictions.SupplychainactorsenjoyadvantagesintheirhomemarketsbutarefacedwithsteepcompetitioninemergingmarketswithunrealisticLocalContentRequirements(LCRs)–aformofNPCsoftenfavouredbygovernmentsasameasurethattheyclaimcanhelpdevelopdomesticmanufacturingcapacity,createlocaljobsandencouragetechnologicalinnovation.Australia,Germany,Ghana,Japan,Oman,theUKandTaiwanonlyimplementedonshoreandoffshoreLCRsin2015.14InJapan,LCRsaccountedfor40outof120projectfeasibilityevaluationpointsinthefirstoffshoretenderroundin2020.Theyincludedhavingatrackrecordofengagementwithkeystakeholdersandimpactonlocalandnationalemploymentandmanufacturing.InTaiwan,theLCRsareevenmorestringent:developersparticipatingintheround3auctionmustlocallyprocure26‘keydevelopmentitems’foratleast60%oftheproject’sproposedcapacity.WhenimplementingLCRs,governmentshavechoices.Theycanuseincentivesorpreferentialtreatmentfordomesticsuppliers,ortheycanreserveprocurementofSustainablepracticeinconstruction,opertaionanddecommissioningEnvironmentalEcologicalTechnologicalInnovationAdoptingnewtechnologiesorintegratingdifferenttechnologiestoincreaseprojectefficiencyandprovideadditionalvaluecreationSupplyChainDevelopmentDevelopingskillsandmanufacturingcapabilitiesOtherBenefitstoCommunitiesEnhancelocalcommunityengagementandwelfarethroughvariousinitiativesFourmaincategoriesofnon-pricecriteriaGovernmentsareunderpressureandgrapplingtointroduceandimplementNPCsthatareeffectiveandbalancetheneedsoflocalandinternationalstakeholders.12.https://www.weforum.org/projects/system-value13.LeasingReport1Q2023(WestwoodGlobalEnergyGroup,2023)14.OvercomingBarrierstoInternationalInvestmentinCleanEnergy(OECD)https://doi.org/10.1787/9789264227064-enPart1:OffshoreWindEnablers27GWECGLOBALOFFSHOREWINDREPORT2023certaingoodsorservicesforthem.GWECadvisesagainstprescriptivelocalisationrequirementsorrestrictivetradepractices.Thisoftenleadstopriceincreasesanddisruption.Instead,weaskforflexibilitythatcanbuildonnationalandregionalcompetitiveadvantages,givingOEMsandthesupplychainmoreflexibilityinoptimisingtheirproduction.Anincentive-basedapproachwillgivetheindustrytheconfidencetoovercomechallengesandscaleup.Forexample,theintroductionoftheIRAintheUS,whichaimstodrivedomesticmanufacturingcapability,regionaltransmissionplansandinvestment,isheraldinganeweraintheinternationalraceforoffshorewind.Thebeneficialchangestothetaxcreditavailable,whenimplementedsuccessfully,willcreatearobustdomesticsupplychaintoenableprojectdevelopmentinthelongterm.Mostimportantly,earlymarketslookingtointroduceLCRsneedaclearimplementationpathwayandanadequatesupportmechanismfromgovernment.Ifintroduced,NPCsshouldbeharmonisedonaregionallevel,transparent,measurableandverifiablewithoutinflatingcostsorartificiallyforeclosingcompetition.LCRsshouldbe:lClearandobjectivetoidentifytherightprojectwithoutbeingdiscriminatoryagainstanygroupofstakeholders.lTransparentandmeasurabletoavoidintroducingadditionaladministrativeprocessesandcomplexbiddingactivities.lReasonableandpracticaltobuildoncurrentindustrycapabilitieswithoutfurtherinflatingcostsordelayingprojectdevelopment.ItisimperativethatanyNPCsselectedcanbefulfilledintheneartermwithoutleadingtofurtherdelayinprojectdevelopment.Asamarketdevelops,NPCscanbecomemoreambitiousovertime.15Mostimportantly,earlymarketslookingtointroduceLCRsneedaclearimplementationpathwayandanadequatesupportmechanismfromgovernment.15.AuctionDesignforWindEnergy-fromcosttovalue(Vestas,2023)Part1:OffshoreWindEnablersGWEC.NET28ChallengesintheglobaloffshorewindsupplychainConsensusondevelopingoffshorewindtoaddresstheunprecedentedtwinchallengesofensuringsecureandaffordableenergysuppliesandmeetingclimatetargetshasneverbeenstronger.BoththeIEAandIRENAhavemappedoutpathwaystonetzeroby2050whereoffshorewindtogetherwithotherregionalenergysourcessuchasonshorewindandsolarPVneedtoscaleupdramaticallytodelivertherequireddeepemissionreductions.TheIEA’sroadmaprequiresoffshorewindannualinstallationstogrownine-fold,fromthe8.8GWinstalledin2022to80GWby2030andthereafter70GWupto2050.IRENAforeseesmorethan2,000GWofoffshorewindinstalledcapacityby2050inits1.5Cscenario,nearlyone-quarteroftotalwindpowercapacityrequiredatthattime.Regional&InternationalSupplyChainDevelopment1.01.33.42.34.54.46.26.121.180328200070548.820152011GWECreportedannualinstallationGWECreportedtotalinstallationAnnualwindinstallationrequiredunderIEA'sNetZeroby2050RoadmapTotalinstallationsrequiredbyIRENA1.5oCscenarioGWECprojectedannualinstallationin2030GWECpredictedtotalinstallation202020212022203020500200400600800100012001400TotaloffshoreinstallationAnnualoffshoreinstallation1600180020000102030405060708090100Source:GWECMarketIntelligence;IEANetZeroby2050Roadmap(May2021),IRENAWETO1.5oCPathway(June2021)Closingtheoffshorewindgapby2050Source:GWECMarketIntelligence,IEANetZeroby2050Roadmap(May2021),IRENAWETO1.5CPathway(June2021)Part1:OffshoreWindEnablers29GWECGLOBALOFFSHOREWINDREPORT2023Whatistheexpectedoffshorewinddemandinthisdecade?Althoughlessthan9GWofnewoffshorewindcapacitywascommissionedworldwidein2022,theglobaloffshorewindmarketisprojectedtobouncebackin2023.WeexpectstablegrowthtocontinueinEuropeandChinathisdecadewhilehugeoffshorewindpotentialwillbeunveiledinemergingmarketsfromNorthAmericatotheAsia-Pacificregion.Withacompoundaverageannualgrowthrateof25%,GWECMarketIntelligenceforecastsnewinstallationstosailpastthe30GWmilestonein2026and50GWin2030.Althoughexpectedannualgrowthratein2030isstill32%lowerthanwhatisrequiredbythenfortheParis-compliant1.5Cpathway,GWECbelievesatotalof328GWofoffshorewindcapacitywillbebuiltbyendof2030,helpingthewindindustrytobringtotalglobalwindinstallationfromtoday’s1TWto2TWbytheendofthisdecade.Isthesupplychainreadytofeedgrowth?TurbinenacellesAccordingtoaGWECMarketIntelligencesurveyinQ12023,163GWofnacelleproductioncapacityisavailablegloballyin2023.Atfirstglance,thewindindustryappearstohaveenoughnacelleassemblycapacitytomeetprojectedglobaldemand.However,bottlenecksarelikelytoemergefromthemiddleofthisdecadeifaseparatebenchmarkisappliedforoffshorewind,especiallyataregionallevel.Comparedwithonshorewind,thesupplychainforoffshorewindturbinesismoreconcentrated,becausemorethan99%ofoffshorewindinstallationsarecurrentlylocatedinEuropeandAPAC.Worldwide,thereare30turbineassemblyplantscurrentlyinoperation,withanother55facilitieseitherunderconstructionorintheplanningstage.Chinahasmorethan20nacelleassemblyfacilitiesinoperationandanother47underconstruction.Withturbinenacelleproductioncapacityof16GWperyear,thecountryaccountsfor58%oftheglobalmarketshare,makingitbyfartheworld’slargestoffshoreturbinenacellemanufacturinghub.ExcludingChina,theAPACregionhasanoffshoreturbinenacellecapacityof1.9GW,mainlylocatedintheTaiwanareaandSouthKorea.Europeistheworld’ssecondlargestoffshorewindturbinenacelleproductionbase.WithassemblyfacilitiesmainlylocatedinDenmark,GermanyandFrance,theregioncanThesupplychainforoffshorewindturbinesismoreconcentrated,becausemorethan99%ofoffshorewindinstallationsarecurrentlylocatedinEuropeandAPAC.Table1.OverviewofglobalwindturbinenacellefacilitiesChinaEuropeIndiaUSALATAMAsiaPacificAfrica&METotalTotalnumberofnacelleassemblyfacilities(offshore)20(1)50004030Numberofannouncednacelleassemblyfacilities(offshore)4710304055FacilitiesownedbywesternturbineOEMsSource:GWECMarketIntelligence,February2023Part1:OffshoreWindEnablersGWEC.NET30Expectedoffshoreturbinenacellecapacityexcl.China,202415,200MWOffshoreturbinenacellecapacityinChina,202316,000MWOffshoreturbinenacellecapacityexcl.China,2023NorthAmerica0%Europe83%(9,500)Europe76%(11,500)China(CNOEMs)94%(15,000)APACexcl.China17%(1,900)NorthAmerica0%11,400MWAPACexcl.China24%(3,700)China(nonCNOEMs)6%(1,000)Offshorewinddemandandsupplybenchmark,2023–2030(MW)Demandvssupplyanalysis2023-2030(MW)2023e2024e2025e2026e2027e2028e2029e2030eEurope514829166527959810808162252046526400China800012000140001500015000150001500015000APACexcl.China17691559288426953256503055356995NorthAmerica533955233535354500450045004500LATAM00000001350Global1545017430257463082833564407554550054245Source:GWECMarketIntelligence,February2023rollout9.5GWofoffshorewindturbinenacellesperyearatpresent,whichweanticipatereaching11.5GWnextyearwhenanewnacellefacilitycomesintooperationinEasternEurope.NorthAmericacurrentlydoesnothaveoffshorenacellefacilitiesinoperation,althoughnacelleinvestmentplanswereannouncedinQ12023bythethreeleadingwesternturbineOEMs:Vestas,SiemensGamesaandGEforNewYorkandNewJersey.ThesameistrueofLATAM,Africa&theMiddleEast.Lookingatthedemandandsupplyprofileforthisdecade,ourbenchmarkresultsshowmorechallengesforoffshorewindthanforonshorewind.GWECMarketIntelligencedoesnotseeanyproblemsarisinginthenearterm,giventhatEuropeanOEMsareabletosharespareoffshorenacelleassemblycapacitywithemergingmarketsinAPACandNorthAmericain2023–2024.However,thesituationisgoingtochange.Startingin2026,weexpectEurope’sexistingoffshoreturbineSource:GWECMarketIntelligence,July2023Part1:OffshoreWindEnablerslSufficientlPotentialbottleneck31GWECGLOBALOFFSHOREWINDREPORT2023nacelleassemblycapacitytonolongerbeabletosupportgrowthoutsideofEurope.Infact,weexpectthatfrom2027Europe’soffshorewindturbinenacelleassemblycapacitywillstruggletocopewiththegrowthexpectedinEuropealone.Existingcapacityneedstodoubleinordertomeettheprojecteddemandforthisregionin2030.LookingatAPAC(excludingChina),althoughoffshoreturbinenacellecapacityislikelytoincreaseto3.7GWafterexpansionworkiscompletedatoneoftheexistingfacilitiesintheTaiwanareain2024,itwillstillbeinsufficienttomeetdemandinthisregionfrom2027/2028.Givenestimatesindicatingthatdemandforoffshorewindturbinesinthisregionwillreach7GWin2030,itisimperativethattheinvestmentplansannouncedbywesternOEMsinpartnershipwithJapaneseandKoreanfirmsmaterialiseintime.IntheUS,consideringlocalcontentrequirements(LCRs),associatedtaxcreditsandincentivesundertheIRAandthetwo-yearleadtimeneededtobuildanewoffshorewindnacelleproductionfacilityfromscratch,itisoftheutmosturgencythatGERenewableEnergy,SGREandVestasturntheirinvestmentplansintoconcreteaction.TherearenoplansforoffshorewindprojectstobebuiltinLATAMuntilthelatterpartofthisdecade.However,earlyinvestmentisneededtoavoidbottlenecks.ThisisespeciallytrueofBrazil,whereenvironmentalinvestigationlicenceslinkedto71offshorewindprojects,totallingmorethan170GW,hadbeenfiledbytheendof2022,accordingtothecountry’sMinistryofMinesandEnergy.Inadditiontooffshorewindturbinenacelles,wefindasimilarsupplychainsituationforoffshorewindturbinekeycomponents.Thereisadelicatebalancebetweensupplyanddemandin2023–2025,butagapisexpectedtooccurfromthesecondhalfofthisdecadeifnofurtherinvestmentismade.AsChinacontrolstheglobalsupplychainforgearboxes,generators,slewingbearings,castings,forgings,towersandflangeswithamarketshareofmorethan70%,restrictivetradepoliciessuchasthoseproposedbytheEUandtheUSlookcertaintocreatebottlenecks.OffshoreWindTurbineInstallationVessels(WTIVs)AccordingtoGWECMarketIntelligence’sGlobalOffshoreWindTurbineInstallationVessels(WTIVs)database,updatedinJuly2023,ChinaandEuropeoperatethemajorityofjack-upandheavy-liftvesselsusedforoffshorewindturbineinstallation.Basedoncurrentsupplychainconditionsandmarketdynamics,weexpectnobottlenecksinmeetingtheglobaldemandforoffshoreWTIVsupto2026.FollowinganoffshorewindinstallationrushinChinadrivenbythefeed-in-tariffcut-offin2021,newinstallationssloweddownin2022andwedonotexpecttosee2021-levelinstallations(15GW)againuntil2026.WebelievethatcurrentChineseWTIVsupplychainavailabilityiswell-positionedtoaccommodatetheprojecteddomesticoffshorewindgrowthinthenearterm.Atthesametime,webelievethatChineseEPCcontractorswillcontinuetouseChineseWTIVstosupportnearshorewindturbineinstallationinVietnam.InEurope,thecurrentWTIVsupplychaincancopewithdemand,giventhatannualoffshorewindinstallationsarerelativelyflatandunlikelytoreachthe10GWleveluntil2026–whichalsoexplainswhyEuropeanvesseloperatorsareabletoreleasetheirjack-upandheavyliftvesselsoverthenexttwoyearstosupportdemandfromemergingmarketsinGWEC.NET32Asia–mainlytheTaiwanareaandJapan–andtheUS.Lookingatthe2027–2030supplychainsituation,GWECMarketIntelligencedoesnotexpectWTIVsupplychainconstraintsinChina.Wesawin2021howquicklythecountrycanmobilisevesselsacrosstheworldandbuildvesselstosupportastonishingannualgrowth.AlthoughtheaverageturbinesizeinChinahasreached7.4MWandturbineswithpowerratingsgreaterthan10MWwillsoonbecometheprevailingproduct,webelievethelocalindustrycanhandlethechallenge.InJune2023,ChinesedeveloperCTGinstalledinFujiantheworld’slargestoffshorewindturbine,Goldwind’sGW252-16MW,withitsnewlybuiltWTIV‘BaiHeTan’.AsofJune2023,27offshoreWTIVsareunderconstructioninChineseshipyards,ofwhich20aretailor-madejack-upvesselsandsevenarepurpose-builtheavyliftvessels.Inaddition,localshipyardssuchasCOSCO,CIMCRafflesandCMHIwonthemajorityofWTIVordersplacedinthepastthreeyearsbylargeEuropeanvesseloperators,namelyCadeler,JanDeNul,Seaway7ASA,VanOordandHavfram.Numberofwindturbineinstallationvesselsin2023Source:GWECMarketIntelligenceGlobalOffshoreWindTurbineInstallationVesselDatabase,July202313493256391182205457Jack-up(Europe)Jack-up(China)Heavylift(Europe)Heavylift(China)Jack-up(Asiaex.China)Heavylift(Asiaex.China)Jack-up(NorthAmerica)Heavylift(NorthAmerica)InoperationUnder-Construction/planned01020304050607080Source:GWECMarketIntelligenceGlobalOffshoreWindTurbineInstallationVesselDatabase,July2023Part1:OffshoreWindEnablers33GWECGLOBALOFFSHOREWINDREPORT2023JapanWith‘BlueWind’–anewWTIVdeliveredinMarch2023–fouroperationaljack-upvesselsandthreeheavyliftvesselsareavailableinJapanasofH12023,buttwoofthejack-upvesselsaretoosmalltohandletoday’slargeoffshoreturbine.However,fourtailor-madeWTIVsaretobedeliveredinthenearfuture:a‘CP16001’,aself-propelledjack-upWTIV,duetobedeliveredtoPenta-OceanConstructionin2023;ajack-upbargetobedeliveredtoObayashiCorporationandToaConstructionSEPin2023;theupgraded‘SeaChallenger’,expectedtobereflaggedanddeliveredtoPenta-OceanandDEMEOffshoreJointVenturein2025;ajack-upbarge,‘DKK107’,plannedbyDaiichiKensetsuKikobutwithoutadeliverydate.Japanhasreleasedanoffshorewindvisionwith10GWofoffshorewindby2030and30–45GWby2040.ThepasttwoyearssawMoUsorpartnershipsbeingsignedbetweenNYKandVanOord,Penta-OceanandDEMEOffshore,Fred.OlsenOceanandShimizuCorporation,andShimizuandHeeremaMarineContractors.Asoftoday,EuropeanoperatorsincludingJanDeNul,Fred.OlsenWindcarrier,Seajacks(nowEneti),Heerema,Seaway7,VanOordandSapuraEnergyhavecharteredtheirvesselstosupportoffshorewindprojectconstructionworkinJapan.Sinceconstructionforthoselarge-scaleprojectsisnotexpectedtoaccelerateuntil2027/2028,ifthenewvesselsinthepipelinearedeliveredontime,nobottlenecksarelikelytooccurinJapanduringtheforecastperiod.Infact,localWTIVsfromJapancouldbeusedtosupportprojectworkinotherAPACmarkets.SouthKoreaTwojack-upWTIVs,‘HyundaiChallenger1’and‘HyundaiFrontier’,andtheheavyliftvessel‘KMMB1500’wereidentifiedforoffshorewindinstallationinSouthKorea.‘HyundaiChallenger1’,ownedbyHyundaiEngineering&SteelIndustries,installedthewindturbinesatthe30MWTamraOffshorewindprojectand60MWSouth-WestOffshorewindprojectPhase1.‘HyundaiFrontier’,atailor-madeWTIVcapableofinstallingturbineswithpowerratingsgreaterthan10MW,isnowreadytocarryoutpracticalinstallationanddemonstrationwork.‘KMMB1500’,atailor-madeheavyliftvesseldeliveredtwoyearsago,hasalreadyinstalleda4.3MWUnisonwindturbineattheGunsanDemonstrationproject.The100MWJejuHamlinoffshorewindproject,the400MWSouthWest–Phase2andthe300MWSinanoffshorewindprojectphase1arealsoincludedinitsexecutionpipeline.Atpresent,onlyonejack-upWTIVcalled‘HyundaiSteel’isunderconstruction.Supportedbygovernmentfunding,itwasoriginallyscheduledtobedeliveredin2021buttheexactdeliverydateisnowunclear.Sinceonlysmall-andmedium-sizedfixed-bottomoffshorewindprojectsareexpectedtobebuiltinSouthKoreabefore2027,noshortagesarelikelytooccur.Afterthatdate,thevesselsupplychainsituationforthiscountrywilldependonhowquicklytheGW-levelwindprojectsinthepipelineareinstalledandwhatkindofinstallationmethodwillbeused–themajorityoftheexpectedadditionsinthenexttenyearsarefromfloatingwind.Ifthecurrentmainstreamfloatingwindinstallationapproach,‘builtandtowed’,isused,SouthKoreaiscapableofsupportingothermarketsintheregion.IfnewWTIVsareneededtocopewithgrowthinthe2030s,webelievetheycanbebuiltlocallyasSouthKoreahastheadvantageofhighR&Dintensityinshipbuilding.Infact,KoreanindustrialconglomeratesincludingSamsung,HyundaiandDaewoo(DSME)havealreadybuiltoffshorewindinstallationvesselsforthemselvesandtheirEuropeanclients.Taiwan(China)NolocallybuiltoperationaloffshoreWTIVwasavailableintheTaiwanareabeforethissummer,whichmeansthattheprojectscurrentlyinoperationandunderconstructionrelyonEuropeanWTIVs.EuropeanoperatorsincludingSeajacks(nowEneti),JanDeNulandHeerema,supportedprojectinstallationatthreedemonstrationoffshorewindprojectsinTaiwanbefore2022.Fourprojects,totalling2.5GW,16areunderconstructionintheTaiwanarea.EuropeanheavyliftvesselsJavelin,Sapura3500,Aegir,Bokalift1and2andjack-upWTIVsvesselsincludingBraveTern,BoldTern,SeajacksZaratanandSeajacksScyllaarecarryingoutthefoundationandturbineinstallationwork.InJune2023,CSBC-DEMEWindEngineeringCo,ajointventurebetweenCSBCCorp,TaiwanandEurope-basedDEME,officiallylauncheditsfirsttailor-madeheavyliftvessel,‘GreenJade’,withamaincranettliftingcapacityofupto4,000tonnes.Thevesselhasalreadybeenbookedforinstallationworkatthe1GWHaiLong2and3andthe300MWZhongNengprojects.AsEuropeanoperatorsarecapableofsharingtheirvesselswithAPACinthenearterm,andwith‘GreenJade’havingjoinedtheEuropeanfleet,nobottleneckisexpectedintheTaiwaneseoffshorewindmarketin2023–2025.However,iftheWTIVscurrentlysupportinginstallationworkintheTaiwanareaneedtosailbacktoEuropetosupporttheexpectedstronggrowthininstallations,therewillbeashortageinthevesselsupplychainfrom2026.‘GreenJade’alonecannotcovertheexpecteddemandof1.5GWperyearonaveragebetween2026and2035.Isnewvesselinvestmentneededtosupportthegrowth?WillprojectdevelopersjustmobilisevesselsfromJapanandSouthKoreatofillthegap?BasedonpastcooperationinfoundationsandcablesbetweenTaiwanandSouthKorea,regionalcooperationisprobablythebestsolutiontothechallenge.VietnamNorealoffshorewindprojecthasbeenbuiltinVietnamasallprojectsinstalledinthewaterssofararenearshore(intertidal)projects.ThemajorityofEPCcontractorsforthe21Vietnamesenearshore/intertidalprojectsthatfullyorpartiallyreachedtheirCODin2021camefromChina,althoughlocalEPCcontractorSigmaEngineeringJSCandDubai-basedSEPCOIIIInternationalalsowonprojectinstallationwork.Duetothesoftseabedconditionsforthoseintertidalprojects,heavyliftvesselsandconvertedbarges(barge+crawlercrane)areusedinVietnam.Withrealoffshorewindprojectsexpectedtobebuiltfrom2028,however,tailor-madeWTIVswillbeneeded.AsofH12023,Vietnamdoesnothavetailor-madeWTIVinoperation,butconsideringthestrongcooperationthattookplacebetweenChinaandVietnamduringtheinstallationrushin2021,webelievethatChineseWTIVsoperatorswillcontinuetosupportdemandfromVietnamforthemediumandlongterm.WhetherthelocalVietnameseoffshorewindindustryneedstobuilditsownWTIVswilldependonhowthetargetof6GWofoffshorewindby2030,includedintherecentlypassedPDP8,isrolledout,aswellasonthegeneralavailabilityofWTIVsintheregionbythemiddleofthisdecade.VesselAvailabilityAPAC-CountryCards16.TheseprojectsareYunlinOffshoreWindProject,GreaterChanghua1&2aproject,ChangfangandXidaoprojectandFormosaII.Part1:OffshoreWindEnablersGWEC.NET34Toaccommodatethegrowingdemandforvesselsthatarecapableofhandlinglargeoffshorewindturbineswithpowerratingsgreaterthan12MWandhubheightsofmorethan150m,EuropeanvesseloperatorsstartedupgradingexistingWTIVsandplacingordersfornext-generationWTIVsinthepastcoupleofyears.However,basedonourlatestmarketgrowthprojection,weforeseealikelyshortageinEuropetowardstheendofthisdecade,unlessinvestmentinnewWTIVsismadebefore2026/2027–assumingaleadtimeofthreeyearsfordeliveringanewWTIV.ThisexpectedbottleneckalsomeansthatoffshorewindmarketsinAPACthatareheavilyreliantonEuropeanvesselsneedtofindasolutionforthefuture.LargeoffshoreWTIVsareveryexpensiveandrequireaskilledworkforceandspecificknowhow.ThismeansthatregionalcooperationforvesselsinAPACisvitaltoensureoffshorewinddeploymentwon’tgetdelayed,especiallyinnewmarketssuchasIndia,thePhilippines,AustraliaandNewZealand.IntheUS,whereonlyonetailor-madeJonesActcompliantWTIViscurrentlyunderconstruction,plansfornewWTIVswillhavetobeexecutedinthenexttwoyearsiftheBidenAdministration’stargetof30GWofoffshorewindby2030istobemet.HowtobuildacompetitiveandsustainableoffshorewindsupplychaintocopewithgrowthTheglobalwindindustryhasseenincreasedsupplychainvulnerabilitysincetheUS-Chinatradewar.ThesituationgotworsewhenageographicallyconcentratedglobalwindsupplychainhadtodealwiththeimpactoftheCOVID-19pandemicandthenthecrisisbroughtbyRussia’sinvasionofUkraine.Inflationandrestrictivetradepolicieshavebeenamongthekeychallengesfacingtheglobalwindindustryinthepast18months,pushingoffshorewinddevelopmentbackinsteadofforward.WiththeEarthenteringaneraof“globalboiling”,urgenteffortsmustbemadetoenableexponentialgrowthinoffshorewindinstallations.Holistically,weneedglobalcooperationandregionalcollaboration,aswellasalignmentPart1:OffshoreWindEnablers35GWECGLOBALOFFSHOREWINDREPORT2023betweengovernments,industries,tradeandfinancialbodiestobuildaresilientglobalsupplychainthatcandeliverontheclimatechangegoals.Lessonslearntinthepastfewyearshaveshownthatsecuringsupplychainsecurityforrenewablesiscrucialforpreventingfromsimilarfailuresinthefuture.Butrestrictivetradepoliciesshouldnotbepursuedastheycanputtheglobalenergytransitionatrisk.Radicaltradepoliciessuchas‘decouplingfromChina’ssupplychain’shouldbereconsideredandreplacedwithamorerealisticapproachsuchas‘Chinaplusone’.Thankstotechnologicalinnovation,theoffshorewindindustryhasmadegreatprogressinthepastdecadeandtheLCOEofutility-scaleoffshorewindhasfallenbymorethan70%.However,thepasttwoyearshavebeenextremelydifficult,withturbineOEMsincurringsignificantlossesduetochallengingmarketconditions.Sizedoesmatter,butanon-stopraceinoffshorewindturbinesizeisnothealthyorsustainable,asitrequiresturbineOEMstocontinuemakinghugeR&Dinvestmentsduringaperiodwhentheyaresufferinglosses.Theshortproductcyclemakesmanufacturingeconomicallyunfeasibleduetohighproductioncosts,andinsufficienttimeforthesupplychaintodevelopeconomiesofscale.OEMsalsoriskthesubstantialupfrontinvestmentsrequiredforvesselsandinfrastructure.Thewindindustryhasreachedapointwhereitisunabletoriskanymorelossesjustatthesametimeasourclimatehasreachedthepointwherewecannotaffordanydelaysintheenergytransition.Forthisreason,developers,turbineOEMsandpolicymakersallneedtoworktogethertobuildaneconomic,resilientandsustainablesupplychain.RegionalcollaborationonthesupplychainOffshorewindispoisedforsignificantgrowthintheAPACregion:Chinahasdominatedthenumberssofar,butJapan,Korea,Taiwan(China)andVietnamarenowactiveoffshorewindmarkets,andnewcomerslikeAustralia,NewZealand,IndiaandthePhilippinesarelookingtomoveforwardwiththeirambitions.OurAPACforecastshowsthisgrowthoutto2032,withprojectpipelinesinamuchwidersetofmarketsthaneverbefore.However,withincreasedappetiteforoffshorewindcomesincreasingdemandforkeysupplychaincomponents.Asotherregionaloffshorewindmarketsgrow,newmarketsinAPACwillneedtolookcarefullyathowtosupportandgrowoffshorewind,nurturingthesupplychainbutnotimposinggrowth-hamperinglocalcontentrequirements.Inthisyear’sGlobalWindReportandGlobalOffshoreWindReport,wehaveexploredthepotentialsupplychainchallengesaroundkeyoffshorewindcomponents.Toreiterateourfindings,by2026weseepotentialbottlenecksineveryregionoftheworldexceptforChina.IntheAPACregion,supplychaingrowththroughregionalcollaborationwillbeessentialforrealisingthe250GWofoffshorewindprojectpipelinesthatwasidentifiedattheendofJune2023.ThenewerAPACmarketscantakesomekeylearningsfromEurope’sexperienceinworkingouthowtobalancebuildingmarketconfidenceandhelpingdomesticplayersGWEC.NET36Thereisnoshortageofsteelintheworld.Yetfortherapidlygrowingwindenergysectoritispossiblethatbottlenecksandsupplyconstraintswillexistinthecomingyearsunlessthesectorisflexibleonsomeofitsidealsourcingrequirements.WindisafastgrowingbutrelativelysmallpartoftotalsteelplatedemandThewindenergysectorisakeydriverofdemandgrowthforsteelplate,byfaritsfastestgrowingenduseworldwide.Thesector’ssteelneedcoulddoublebytheendofthedecade.However,theabsolutescaleofwinddemandforsteelplateisdwarfedbyotherenduses,especiallyconstruction.Whenputtingwindintothecontextoftotalreversingmillplatedemand,thesectorlookssmall.Onthesurface,thereseemstobeplentyofsteelplateintheworldthatcouldservethewindenergyindustry.Whythenwouldtherebeanyconcernoversupplychainbottlenecksandshortages?Butit’snotjustabouttotalsteelplateThechallengeforthewindenergysupplychaincomesnotbecausesteelisscarce–itisnot–butbecauseofthewaythattheindustryideallyrequiresseveralsub-areasofsteeltoallintersect.WecanillustratethisinqualitativetermswiththefollowingVenndiagram:Thesteelrequiredinwindistheresultofoverlapsofseveralsub-areasSteelgradesforwindareundemandingbutdimensionsforoffshorearenicheThechemicalspecification,orgrade,ofmuchofthesteelusedbythewindsectorisrelativelyundemandingandmostmillswouldbeabletomakeit.Wherewindbecomesamoredemandingcustomerisonproductdimensions.Inthemoreextremecases,especiallyforoffshore,thedemandcanbeforplatesofupto150mmthick.Themostcommonplatethicknessingeneraldemandis10-60mmandso,evenwithoutextendingallthewayto150mm,therequirementsforwindtendtowardsthethickerendofmillproductranges.Thereisarelativelysmallpoolofsuppliersabletomeetalltheproductneedsoftheoffshorewindenergyindustry.MaterialsoriginshaverisenuptheagendaOver60%oftheworld’sreversingmillplateisproducedinChina,whichisalsotheworld’sbiggestexporteroftheproduct.ButtheUSisleadingeffortstodiversifyor‘de-risk’awayfromChina.AndChinahasshownrecentlyingalliumandgermaniumthatitispreparedtoacttorestrictitsexports.Sourcingdecisionsmadeinsuchanenvironmentarecomplexbutitmaybethatwhatlookslikeawiderangeofpossiblesuppliersisreducedinpracticetoasmallernumberofacceptableorigins.RenewablesareakeydemandsourceoflowemissionsteelWeightedaverageScope1emissionsfromtheworld’splatemillsis2.2tCO2/t.Thesteelindustryisworkinghardonitsdecarbonisation.Resultsatscalearelikelytotakeyears,yetthewindenergyindustryisgrowingrapidlyrightnow.Itmaynotbepossibleforalldeveloperstoaccesslowemissionsteelforseveralyearstocome.Findoutmorehere:http://www.crugroup.com/Casestudy:ThewindindustrycannotyethaveitallinsteelChina52%(93.8)OtherAsia23%(42.2)Europe10%(19)Other8%(14.3)Americas7%(12.9)182.4Reversingmillcapacity,Mt/y,2023Data:CRUSteelgradesanddimensionsneededforwindDesiredsupplyorigins(e.g.ishighexposuretoChinaOK?)LowemissionsteelIsthissufficientforwindorwilltherebebottlenecksData:CRUPart1:OffshoreWindEnablers37GWECGLOBALOFFSHOREWINDREPORT2023manageexternalchallengessuchasthesupplyofcriticalmaterials,whilealsogrowingasupplychainbutavoidingburdensomelocalcontentrequirementsthataddcosts,skewinvestmentdecisionsandslowdownthepaceofoffshorewinddeployment.TheseimportantEuropeaninitiativessitalongsideotherEuropeanprogrammessuchastheEuropeanCriticalRawMaterialsActandtheEuropeanCommission’sGreenDealIndustrialPlan,publishedinFebruary2023.Thisisthelevelofpoliticalcommitmentandcooperationthatisnecessarytoaccelerateoffshorewindgrowth.Significanteffortisalsorequiredtobuildthenecessaryinfrastructuretounderpintherolloutofoffshorewind.WindEuropeestimatesthatby2030Europealonewillneedtoinvest€8.5billioninitsportinfrastructure–asignificantchallenge,giventhatinvestmentsmustbeinplaceaheadofdemand.Europealsofaceschallengesinthereadinessofitssupplychainandtheprofitabilityofasectorhitbyrisingcommodityandsupplychaincosts.TherearerecognisedcapacityshortagesintermsofOEMproductionandvessels,whicharecoveredintheprevioussectionofthisreport.Butifthesecanbeovercome,thepoliticalimperativecreatedshouldhelptounderpininvestorconfidenceinsupplychaingrowth.InitiativesliketheNSEC,bringingtogetherthecountriesaroundtheNorthSea,areagoodmodelforotherregionstofollow.Theyofferthefollowingbenefitsthatotherregionscanlearnfrom:1.Raisingambition.Workingtogetherhelpsinstilconfidenceacrossdifferentcountriesthatambitioustargetscanbeachieved.2.Allowingcooperationonsharedchallenges.Forexample,inEuropeeffortsarebeingmadetobuildoutmeshedgridsystemstofacilitatemoreefficientcross-bordertransmissionsystem.173.Enablinglargercompaniesactiveinthesupplychaintolookathowtosupplygrowingdemand.InEuropethishasresultedinblade,nacelle,tower,foundation,cableandothermanufacturingfacilitiesdevelopingaroundtheNorthSeamarketovertime.CaseStudy:EuropeancollaborationonoffshorewindSinceearly2022,astheimpacttheUkrainewaronenergypricesbecameclear,politiciansandenergysectorstakeholdersacrossEuropehavebeenlookingatoptionsforreducingdependencyonvolatileglobalmarketsandRussiangas.WhileEuropehasbeenagrowthmarketforrenewables,thiswasagainstabackdropofgrowingenergyintegrationandrelianceonRussiaasasourceoffossilfuels.Atshortnotice,Europehadtofocusondiversificationandhome-grownenergysources.Thisswitchhasbroughtgreaterfocustooffshorewind–alreadyoneofEurope’sbiggrowthareas.Tosupportacceleration,Europeancountrieshaveputinplacepracticalprogrammestounderpinoffshorewinddeploymentacrosstheregion,especiallyintheNorthSeaandthebigoffshorewindmarketsclusteredaroundit.May2022sawthesigningoftheEsbjergDeclaration,withBelgium,Germany,DenmarkandtheNetherlandsraisingoffshorewindcommitmentstodeliver65GWofoffshorewindby2030.TheninenationswhichmakeupEurope’sNorthSeasEnergyCooperation(NSEC)agreementmetinDublininSeptember2022toagreeaprogrammeofmeasurestosupportachievementof76GWofoffshorewindenergyby2030,risingto193GWby2040andatleast300GWby2050.ThisraisedambitionoftheNSECcontrastswiththeEU’s2020targetsof60GWby2030and300GWby2050acrossthewholeofthebloc.InresponsetotheEsbjergDeclaration,majorEuropeanportshavecometogethertolookathowtheycancollaboratetodelivertheadditionaloffshorewindcapacityrequired.TheportsofEsbjerg(Denmark),Oostende(Belgium),GroningenSeaports/Eemshaven(Netherlands),NiedersachsenPort/Cuxhaven(Germany),Nantes-SaintNazaire(France)andHumber(UK)areworkingtogethertoseehowtheycansupporteachothertogrowoffshorewindactivity.17.Meshedgridsthenextfrontierinleveragingthepotentialofoffshorewindhttps://windeurope.org/newsroom/news/meshed-grids-the-next-frontier-in-leveraging-the-potential-of-offshore-wind/Part1:OffshoreWindEnablersGWEC.NET38Atanationallevel,weareseeingactivityfocusingonnationalstrengthsandcooperation.CountriesacrossEuropehavereciprocaltradeandpartnershiparrangements,withtradedelegationsmovingbetweenmarketsandsharingknowledge.Countriesareincreasinglyfocusedontheirspecificcapabilitiesandstrengths,ratherthanseekingtowinallaspectsoftheoffshorewindvaluechain.Inothermarkets,itwillbeparticularlyimportanttolookatportinfrastructurerequirements,aswellastomapwherethereareassociatedskillssuchasshipbuilding,fabrication,electronicsandengineeringexcellence.AreasofpotentialcooperationintheAPACregioncouldinclude:1.Offshorewinddeploymenttendstorequiregridinfrastructureupgradesandopensuptheoptionofmeshedoffshoresystems.Incountrieswithinterconnection,theuseofpowerexportsrequirescoordinatedregulationtoenablecompaniesthatinvesttounderstandhowdifferentpowermarketsworkeffectivelytogether.2.Offshorewinddeploymentalsorequiresthesupportoflarge-scaleportinfrastructure.Itwillbeimportanttolookatportinfrastructurerequirementsespeciallyforfloatingwind,andtomapwherethereareassociatedskillssuchasshipbuilding,fabrication,electronicsandengineeringexcellence.Regionalcooperationinportinfrastructureiscriticalparticularlyintheearlystageofdevelopmentwheneachindividualmarkethasyettoachieveasignificantscaleofdeployment.Forexample,beforeoffshorewindportswereestablishedinGermany,NetherlandsandtheUK,theDanishoffshorewindportofEsbjergplayedavitalroleinsupportingregionaloffshorewindexpansion.AccordingtoPortofEsbjerg,ithassofarsupportedmorethan23GWofoffshorewindcapacitycrossing59projects,althoughitshomecountryDenmarkonlyinstalled2.3GWoffshorewindbytheendof2022.3.SomesupplychainchallengesarealreadyfacingAPAC.Theregionhasseveralmatureoffshorewindsupplychainprovidersfortowers,shippingandcables,andsomeexistingOEMactivityfocusedontheonshorewindmarket.Butitneedsproductionfacilitiesthatcanaccommodatelargerbladesandnacelles,aswellastowers.OEMsareunderpressuretobringlocalcontentwithorders,butinpracticetheyneedtomakedecisionsonaregionalbasis.Coordinationbetweendifferentcountriescanhelptoopenupthisconversation,giventhatpoliticalwillandsupportareimportantfactorsindecidingwheretoinvest.RegionalactiontofostercollaborationbetweenOEMsandlocalindustrialcompaniescanoftenbefruitful.4.Whilediscussionsoverlocalcontentoftenendupfocusingontier-onecomponents,itisoftenusefultolookatthewidersupplychainandworkoutwherenationalandregionalstrengthsliethroughcapabilityassessmentssuchasthosecarriedoutinmarketsliketheUSandUK.AcrossAPACthereCountriesareincreasinglyfocusedontheirspecificcapabilitiesandstrengths,ratherthanseekingtowinallaspectsoftheoffshorewindvaluechain.Part1:OffshoreWindEnablers39GWECGLOBALOFFSHOREWINDREPORT2023isexpertiseinoffshoreoilandgas,shipbuildingandengineeringthatcanbeappliedtomanufacturing,inparticulartotheinstallationandoperationsphasesofoffshorewind,aswellastothenascentfloatingoffshorewindsector.5.WiththegrowthofPower-to-X,thereareopportunitiesforregionalcooperationtoincentivisethegrowthoflow-carbonfuels.Power-to-Xrequiresaclearregulatoryregimeandaroutetomarket.ConsistencyacrossAPACwillhelpbuildinvestorconfidenceandfast-trackdevelopment.Butcountriescanalsocooperateoncommonchallengesandinfrastructure–forexampleassessingwhatportinfrastructureabunkeringwillbeneededinthefuture.Shipsmovingacrosstheregionwillneedtobeabletoaccesscommonrefuellinginfrastructureindifferentportstheyvisit,whichwillrequireeitheraclearmarketsolutionorconsistentregulation.SkillsandWorkforceBuildingtheoffshorewindworkforceofthefutureThevastexpansionofoffshorewindintooceansineveryregionoftheworldwillrequiremobilisationofatrainedanddiverseworkforce.Giventhecomplexandvariedrequirementsoftheoffshorewindprojectlifecycle,frombiologiststomarineengineerstologisticsspecialists,thedemandsofworkforcedevelopmentmustberecognisedearlyintheplanningstageandatanationallevel.Proactiveplanningtoaddressoccupationalgapsandprogrammesforrecruitmentandtrainingneedswillattractskilledworkerstothisgrowingindustry.Theseactivitieswillalsobeimportanttoensurethatthecleanenergytransitionremainsontrack.IRENAhasidentifiedskillsgaps,misalignmentsbetweenfossilfueljoblossesandrenewableindustryjobgains,andhealthandsafetyqualityissuesassomeofthekeybarrierstoenablinga1.5Cpathway.Tomeetthesechallengesheadon,thewindindustrywillneedtopromotetheskillsrequiredtodriveprojectsforwardandenhancedialogueonworkforcedevelopmentwithbothpolicymakersandeducationalinstitutions.A2022studyconductedbyGWECandtheGlobalWindOrganisation(GWO)revealedthatatleast569,000trainedtechnicianswouldberequiredtosafelyconstruct,install,operateandmaintainwindprojectsaroundtheworldthrough2026.18Nearly15%ofthese,oraround74,400people,wouldberequiredforoffshorewindinstallations.Theskillsetsrequiredforthesetechniciansareunique,includingsafetyprotocolswhenworkingatheightsandsurvivalatsea.Sincethisstudywaspublished,growthprojections–countries’interestindevelopingoffshorewind–havegrown.Moreover,thestudydidnotcoverworkforcerequirementsinthemostlabour-intensivesegmentoftheoffshorewindvaluechain,namelythemanufacturingofcomponentsandassetsforoffshorewindarms.Additionalopportunitiesexisttoexpandtheoffshorewindworkforcepipeline,frominnovationfortherecyclingofwindbladestothebuildoutofrelatedportandshipinfrastructure.Howcantheindustryrespondtothediversedemandsforoffshorewindworkers?Intermsofcommunicatingthecomparativeadvantagesofwindenergyjobs,theindustrycanemphasise:lThelong-termjobsecurityattachedtowindindustryjobs,18.https://gwec.net/more-than-half-a-million-wind-technicians-needed-by-2026-for-wind-energy-construction-and-maintenance/Part1:OffshoreWindEnablersGWEC.NET40comparedwithjobsinthefossilfuelindustries,whichhavealreadybeensurpassedbythecleanenergylabourforceasof2022,accordingtotheIEA.19lThelocalisedandlong-termnatureoftheO&Msegmentoftheoffshorewindvaluechain,whichcanprovidejobsforcommunitiesaroundwindfarminstallationsforroughly25years.20lThewagesecurityofwindindustryjobs,whicharenotsubjecttothevolatilityoffuelpricesandproductioncycles.lThereturnoninvestmentforlocalandnationalauthorities,asstudiesshowthatcleanenergyinvestmentscreatemorenear-termjobsforevery$1millioncomparedwithfossilfuelinvestments.21Industrialandlabourforcepolicywillbecriticalformedium-andlong-termguidanceoftheoffshorewindworkforce.Theindustrymustencouragepolicymakersanddecision-makersto:lAdopttargetedprogrammesandskillsdevelopmentframeworksforpopulationsaroundplannedprojects,withaconsiderationforrelocationofworkersinsunsetindustries;lWorkwithindustrytodevelopattractiveincentivesforencouragingupskillingandmobilisingpublic-privateinvestmentinatalentpipeline;lInvestinworkforcedataandforecastingforearlyidentificationofskillsgapsandbaselinesonwagesandlabourcosts,inthecontextofdevelopingagreeneconomy;andlCollaboratewiththeprivatesectorandeducationalinstitutionstoattractandfosterthenextgenerationofworkersinthewindindustrytoacceleratethecleanenergytransition.Finally,astheindustryworkforcegrows,itsconstituentsmustalsoberesponsibleforfosteringajusttransitionforpeople.Thiscouldtranslateintoeffortstoencourageworkforcediversityandequalaccesstotrainingandeducationalopportunities,aswellasaddressingsupplychainstrengthsandweaknesses,includingintheupstreamminingsegment.Asuccessfultransitionmeansdecentwork–labourrights,wages,occupationalhealthandsafety,jobsecurityandotherfactors–alongtheentirevaluechainforwindenergy.19.https://www.iea.org/reports/world-energy-employment20.https://www.irena.org/publications/2018/May/Leveraging-Local-Capacity-for-Offshore-Wind21.https://www.ituc-csi.org/IMG/pdf/the_green_jobs_advantage_-_wri_nce_and_ituc_working_paper.pdfPart1:OffshoreWindEnablers41GWECGLOBALOFFSHOREWINDREPORT2023PART2:TECHNOLOGYGWEC.NET42Floatingoffshorewindisrapidlyshiftingtocommercialscale,drawingfromindustryexperienceinfixed-bottomoffshorewindandtheoilandgassectors.Learningfromthefewfloatingoffshorewinddemonstratorshasbeeninvaluable,butthesectorstillfacesanumberofknownunknowns.ThismeansthattheindustryneedstocontinuetolearnfromearlyexperienceasitbreaksthroughintodeliveryofGW-scaleprojects.Thesectorisgrapplingwiththeshiftfromahandfulofsingle-turbinedemonstratorsandthefivewindfarmsthatareoperatingorunderconstructiontoday:HywindScotland&Kincardine(UK);WindfloatAtlantic(Portugal);HywindTampen(Norway);andGoto(Japan).Muchappliedlearningneedstocomeoutoftheexperienceofbuildingandoperatingthese32turbinesspreadacrosstheglobe,inadditiontothetensingle-turbinedemonstratorsalsoinoperation.MarketstatusandactivitiesGWECMarketIntelligencepredictsthat10.9GWislikelytobebuiltgloballyby2030,42%lessthanthepreviousyear’sprojection.Thisfigurestillhighlightstherapidgrowthexpectedacrosstheremainderofthisdecade,thoughitislikelytobedwarfedbywhathappensinthe2030s,whenfloatingoffshorewindisexpectedtoreallyaccelerate.Overthenextfiveyears,weexpecttoseeasmallnumberof100–500MWprojectssuccessfullybuilt.ThenextphaseofinstallationforfloatingwillshifttoFranceandChina,whichbetweenthemhas300MWoffloatingprojectsinpre-constructionandsetforconstructionlaterthisyearornext.Chinaisalsoactiveinfloatingoffshorewind,withtheFujianNanriIsland4MWdemonstratorandthe16.6MWNezzy2demonstratorbothheadingintoconstructionshortly,aswellasthetwo100MWphasesofPowerChinaInternationalGroup’sPFS-1SoutheastWanningproject.Dependingoncompletiontimes,thisprojectisexpectedtobecometheworld’slargestfloatingoffshorewindfarm,demonstratingChina’scommitmenttofloatingoffshorewind,alongsideitsunequivocalleadershipinfixedoffshorewinddeployment.Withthemajorityoftheglobalfloatingwindresourceindeeperwaters,wecanseethatconfidenceintheabilityofthewindsectortosuccessfullydeployispromptinggovernmentsandleasingbodiestoprepareandrunauctionsforseabed.In2022/2023,wehaveseenprogressintheUKwithScotWind,INTOGandtheCelticSeasleasingrounds,aswellasactivityinKorea,theUS,Spain,PortugalandNorway.Part2:TechnologyFloatingOffshoreWind-AccelerationandRealityOverthenextfiveyears,weexpecttoseeasmallnumberof100–500MWprojectssuccessfullybuilt.43GWECGLOBALOFFSHOREWINDREPORT2023Part2:TechnologyTheUKhasasetofprojectsinthepipeline,includingtheTotalEnergies/SimplyBlueErebusproject(96MW),theEdF/TNBBlythdemonstrator(70MW)andtheCIP/HexiconPentlandproject(100MW),highlightingtheimportanceoftheUKasaplaceoflearningfortheglobalfloatingmarket.TheScottishleasingroundsofScotWindandINTOGaloneaccountfor24.9GWoffloatingcapacity,whichisapproximatelyone-thirdoftheknownglobalpipeline.TheoriginalScotWindpipelinehasgrownafterchangestoprojectcapacityandtheadditionofafurtherthreesitestotalling2.8GWeastofShetland,aftercompletionoftheScotWindclearingprocess.CrownEstateScotlandannouncedtheINTOGresultsinMarch2023,with5.4GWofprojectsunveiled.INTOGincludesfiveinnovation(IN)projectstotalling449MW.Theremainderaretargetedoilandgas(TOG)projectsfocusedonthedecarbonisationofoilandgasplatforms.TheTOGprojectsrangefromaTotalEnergies3MWprojecttoCeruleanWind’sthree1,008MWprojects.ThescaleofthisScottishfloatingpipelinesignalsthatsignificantlearningsfortheglobalmarketwillcomefromthedevelopmentoftheseNorthSeaprojects.InSouthKorea,14sitestotallingover7GWhaveexclusivityagreementsinplaceviaElectricityBusinessLicences(EBL).Thecountry’smajorfloatingwindoffshorehub,Ulsan,hosts13ofthesesites.Another11.9GWiscurrentlyindevelopmentaroundSouthKorea’scoastline.IntheUSA,theBureauofOceanEnergyManagement(BOEM)concludeditsCaliforniafloatingauctioninDecember2022,withfoursitesgivenleasestotalling8.1GW.InJanuary2023,BOEMpublishedaDeterminationofNoCompetitiveInterestforaproposedresearchleaseareaoffshoreMainefora12-turbine144MWfloatingoffshorewindsite.Finally,Norwayhasopenedupitstenderprocessforoffshorewindprojectsfor1.5GWatUtsiraNord,nearStavanger.Theareaissuitableforfloatingoffshorewindandpermitswillbesplitbetweenthreeprojectsof500MW,whichcouldbeexpandedto750MW.OvercomingtechnicalchallengesDevelopersarefocusedonCaseStudy:FrenchMarketOverthenexttwoyears,oneofthemostactiveglobalfloatingmarketswillbeFrance,with85MWmovingintoconstructionatthreeprojects–LesEoliennesFlottantesduGolfeduLion(EFGL),EolMedandtheProvenceGrandLarge(PGL)–afterwinninggovernmenttenderstodevelopthesites.Thesitesareusingdifferentfloatingtechnologies:PrinciplePowerforEFGL,SBMOffshoreforPGLandBMIdeolforEolMed.BMIdeolismanufacturingitsplatformsfromsteelatPort-la-Nouvelle,whileEiffageMétalismanufacturingboththeWindfloatandSBMOffshoreplatformsatitsFos-sur-Mersite.Tobuildonthismomentum,theFrenchgovernmentisactivelymanaginganumberofleaseroundsexpectedtodeliverupto2GWoffloatingoffshorewind.InBrittany,theFrenchGovernmentistenderingtwo250MWsites,whileintheGulfofLionintheMediterraneanpre-selectioniscompletefortwo250MWsites:oneoffNarbonnaise-nearPerpignanandoneintheGulfofFosnearMarseille.BoththeseGulfofLionsitesarefor250MW,extendablebyafurther500MW.GWEC.NET44bringingarangeofprojectstomarket,whichmeansidentifyingsuitableportsformanufacturingandassemblyactivities,resolvingissuesaroundwetstorage,logistics,craneandheavyliftrequirements,aswellasensuringthatthecomplexlogisticsrequirementsofmulti-portbuildoutareinplace.Thewiderfloatingoffshorewindsupplychainhasbeenworkingtomakesureitisreadytomeetdeveloperneeds.Itisworthrememberingthatthemarketdoesnotbuyinnovation–itbuyssolutionstohelpmitigateriskandcost.Thatcreatesadynamicwhere,asanewmarket,thefloatingoffshorewindsectorneedstolookatnewapproachesyetatthesametimefindaroutetomarketthatisdemonstrablyprovenandlow-risk.Floatingplatformcompanieshavebeencarryingoutarangeofactivities.Thoseat–orcloseto–fulltechnologyreadinessarefocusedonthescale-upofplatformsforlargerturbineslaterinthedecade,aswellaslookingatconstructionprocessesandhowtoacceleratemanufacturing.Forsteelplatforms,thismeansashiftfromfabricationatasinglelocationtovolumemanufacturingofdifferentplatformelementsforshippingandassemblytoportsneartheprojectlocations.Forconcreteplatforms,thismeansashifttovolumeproductionmethodssuchasslip-formingandpost-tensioning,andinvestinginlargesitesabletodeliverconcreteplatformsonaproductionlinebasis.Whilethefocusofsectordiscussionsisoftenaboutplatformtypes,thereissignificantworkunderwayforprovidersofmooringlines,anchorsandconnectors.Thistechnologyalreadyexistsinthemaritimeandoilandgassectors,andcantransitionreasonablyeasilyintofloatingoffshorewind–providedthatthesectorisclearonspecificationssuchasmooringtypesandnumbers,diametersandredundancy.Whilethespaceneedsforplatformmanufacturingandassemblyareincreasinglywellunderstood,otheractivitiessuchascable,anchorandmooringlinestorageandintegrationalsoneedtobefactoredin–andspaceneedstobefound.Finally,thereisincreasingactivityamongstmajorEPC,shippingandport-engineeringcompaniesthatareofferingsolutionstothemarket.Activityaroundlogistics,assemblyandinstallationrequiresinvestment.Developerscanbenefitfromtheknowledgeofcivilandmarineengineeringgroupsthatareactiveinoffshorewind.Raisingoursightstothe2030sAsoftoday,theUK,Norway,Portugal,ChinaandJapanarethetopfivemarketsintotalnetfloatingwindinstallations.Bytheendof2030,SouthKoreaislikelytoreplaceJapaninthetop-fivegrouping.Eachofthesecountriesofferslessonsforthedeploymentoffloatingoffshorewindatscale.Buttheywillallstruggletoensurethatportinfrastructureandtheassociatedsupplychaincanaccommodatethelargematerialandspacedemandsoffloatingoffshorewind.MarketsliketheUKalsorequiresignificantgridupgradestoconnecttheadditionalgenerationcomingtothemoreperipheralpartsofthegridsystem.Whileenergyforecastsarefocusedona2030milestone,thispointintimeisnotsignificantforfloatingoffshorewind.Weknowthattherewillbesubstantialprojectactivitybythispoint,withanincreasingvolumeofprojectscomingthroughtheinstallationphaseandbeginningoperationbyorcloseto2030.Butitiswisertofocusoncumulativegrowthintotheearly2030s,withongoingaccelerationexpectedinthenextdecade.Asoftoday,theUK,Norway,Portugal,ChinaandJapanarethetopfivemarketsintotalnetfloatingwindinstallations.Part2:Technology45GWECGLOBALOFFSHOREWINDREPORT2023Astheoffshorewindmarkethasgrown,therehasbeenacleartrendtobuildlargerprojects,withscalehelpingtobringdowncostsandmaximisethebenefitsofpowergenerationforpowersystemsanddecarbonisationgoals.Inresponse,theindustryislookingtomovefrompoint-to-pointtomeshedgridsystems,wheremultipleconnectionsarerequired.IntheNorthSeathisshiftalsoincludesthedevelopmentofenergyislandsaslocationsformanagingmultipleconnections.Aswindprojectsgrow,theyareshiftingfurtherfromshore.Thisisobviouslythecaseinmaturemarketswheresitesclosertoshorehavealreadybeendeveloped.Theshiftbringsadditionalchallengesintheconstructionandoperationofprojects–withcrew,equipmentandvesselsneedingtobebroughtinfromfurtheraway–andinthelongerdistancesneededforexportcablestoconnectwindfarms.Industryhasmadeashifttolargerserviceoperationvessels(SOVs)thatarestationedclosetowindfarmsandactascrewbasesduringbothconstructionandoperation.Thesevesselsaddcostbutincreasetheeffectivenessofwindfarmmanagement.RaisingambitiononconnectionsAsweaccelerateoffshorewinddeployment,thechallengesaroundgridconnectionareincreasing.Avaststep-upinpublicandprivateinvestmentintransmissionandgridmanagementsolutionsisneeded,inanareathatisalreadybesetbydelaysforconnectionagreements.Thescaleofconnectionsrequiredcouldcreatesupplychainpressuresandincreasecurtailmentrisk,butalsooffersopportunitiesforinvestingincablemanufacturing.AnexampleofindustryrequirementscameearlierthisyearwhenDutchstate-ownedelectricgridcompanyTenneTannouncedtheawardof11contractsforNorthSeaoffshorewindprojectconnectionstotwoconsortiums,withacombinedvalueof$25billion.ThesehugegridconnectionprogrammesrespondtoagrowingpipelineofwindprojectsawaitingconnectionandacuteenergysecurityconcernsinthewakeofRussia’sinvasionofUkraine.TheMay2022EsbjergDeclaration,signedbytheheadsofstateforGermany,theNetherlands,DenmarkandBelgium,isagreatexampleofraisedcommitmentsdrivingtheneedforacceleratedconnections.Thesefourcountrieshaveacommitmenttobuilding65GWworthofoffshorewindby2030asEuropetriestoreducerelianceonfossilfuelsandmeetclimategoals.IntheUK,thesystemoperatorNG-ESOisworkingwithregulatorOfgemandthegovernmenttomovetheoffshorewindmarkettowardmeshedconnections.ItsHolisticNetworkDesign(HND)programmeiscurrentlyinthesecondphaseofconnectionagreementstosupportprojectsintheUK’sRound4,ScotWindandCelticSeasleasingrounds.TheHNDprocessisaresponsetolongstandingindustrycallsforcoordinatedtransmissionconnections,buttheshiftinregulatoryapproachstillcreateschallengesforindividualprojectslookingforcertaintyoverconnectiontimes.OffshoreenergyislandsandhubconnectionsPart2:TechnologyGWEC.NET46Asharedchallengefortheselargeoffshorewindmarketsishowtoscaleupconnectionsintermsofthephysicalvolumeofcablesandinfrastructurerequiredwhilereducingthelengthoftimethatprojectswaitforconnections.TheUK’sOffshoreWindChampionrecentlyreleasedareport–Acceleratingdeploymentofoffshorewindfarms–whichsetsouttheoverarchingneedtoacceleratethebuildoutofgridinfrastructureandreduceconnectiontimes.“IfIhadtosumupinonesentencewherewestandtoday,Icouldn’tusewordsbetterthanthoseofaEuropeandeveloperwithinvestmentsacrosstheUK:‘TheUKislongonseabedleases,butshortontimelygridconnections.’,”TimPick–theUK’sfirstOffshoreWindChampionsaid.“Ifyoutakejustonemessagefromthisreport,itshouldbetheurgentneedtoupgradeournationalgridforaworldofhighrenewablespenetration,andwidespreadelectrificationofhomesandbusinesses,”headded.Thismessageneedstobeunderstoodinthemanymatureandemergingoffshorewindmarketsaroundtheglobe.ThegenesisofenergyislandsThecontinueddemandfornewoffshoresitesandGW-scalevolumeshasdriventhedevelopmentofenergyislands.TheNorthSeaisafocusofinternationaleffortstodevelopthem,giventheexistingmultinationalcooperationonoffshorewind,thevolumesofoffshorewindtargetedfordevelopmentandtherelativelyshallowwaterslocatedbetweentheUKandScandinavia.IncludedintheEsbjergDeclarationisacommitmenttocollaborateonenergyislands.ThefirstbilateralagreementbetweenDenmarkandBelgiumisalreadyinplacetosupportconstructionandinterconnectiontoafirst,3GWenergyislandby2033,withplanstogrowconnectedcapacitytothisislandto10GWby2040.TheEsbjergDeclarationalsomakesacommitmenttoestablishingasecondenergyislandintheNorthSeaandtocarryingoutfurtherscreeningforenergyislandsaswellashighlightingtheneedforafasterapprovalprocess.GridoperatorTenneTisalsolookingathowenergyislandscansupportitshub-and-spokeconcept,fortheconnectionofmultipleoffshorewindprojectsandthenexportingtheresultingpower.Longerterm,theseislandsalsoofferopportunitiesforpower-to-XPart2:TechnologyCaseStudy:PrincessElisabethIslandPrincessElisabethIslandissettobetheworld’sfirstenergyisland.Itislocated45kmofftheBelgiancoastandwillconnectupto3.5GWofoffshorewindfromthePrincessElisabethoffshorewindzonebacktoshore.Inaddition,theenergyislandisseenasthefirstbuildingblockinlonger-termplanstocreateanoffshoreelectricitygridintheNorthSealinkingintonewinterconnectorswiththeUKandDenmark.TheprojectisbeingledbyBelgiumtransmissionsystemoperatorElia.Constructedfromconcretecaissonsfilledwithsand,theislandwillhousetransmissioninfrastructure,asmallharbourandahelicopterpadforusebythemaintenanceteams.Constructionworkisscheduledtobeginin2024andwilllastthrough2026,withcontractsawardedtoaconsortiumincludingDemeGroupandJanDeNul.Eliaaimstohavetheislandworkingatfullconnectioncapacityby2030.Thecostoftheprojecthasbeenestimatedat€600million,with€100millionoffundingcomingfromBelgium’srecoveryandresilienceplan(NRRP).47GWECGLOBALOFFSHOREWINDREPORT2023strategies,generatinggreenhydrogenandderivativeslikeammoniaormethanolforshipmentorpipingbacktoshore.TheDanishEnergyAgency(DEA)isleadingworkonthefirstenergyislandandseekinginvestorsfortheproject.Itsmodelisforprivateinvestorstoconstructtheislandandoncompletionsella50.1%stakebacktotheDanishgovernment.SubsequentlytheyreceiverentalrevenuesfromDanishTransmissionSystemOperatorENDKleasinglandontheislandforitsoffshorewindconnections.Inaddition,theremayberevenuefromleasingislandspaceforotherpurposessuchasoffshorewindO&Mactivitiesorgreenhydrogenandotherpower-to-Xprojects.Thetenderprocesswasrecentlypostponed,astheDanishEnergyAgencyseekstoexploreoptionstomaketheproposedschemeprofitableandjustifygovernmentinvolvement.Thetenderwasexpectedtoopeninsummer2023,withtheawardannouncementscheduledforautumn2025;thetimetableisnowuncertainbuttheDanishgovernmentisexpectedtoprovideclarificationslaterthisyear.RapidtechnologicalevolutionAsvolumesgrow,thetechnicalsolutionstosupportmeshedgridsandbiggerconnectionsareincreasing.Arrayandexportcablesizesareincreasing,movingfrom33kVto66kV,andthemarketisalsoseekingtoshiftto132kV.Thiswillmakenewinvestmentsincableproductionnecessary.Largerprojectsfurtherfromshorealsorequirehigh-voltagedirectcurrent(HVDC)cables,whereproductioncapacityislimited.Largecontractawardstieupglobalproduction,makingitdifficultforotheroffshorewindprojectstosecuresuppliesintimeforconnection.Alongsidethis,thegrowthoffloatingoffshorewindcallsfortheproductionofmoredynamicarraycablesthatcanconnectfloatingturbinestosubstationsforpowerexport.Inthemediumterm,thereisresearchandcommercialisationactivityinsupportofnewsuperconductingcablesystems,whichofferapotentialrouteforthetransmissionoflargeramountsofpowerusingsmallercablediametersandhavelowresistance–thusavoidingoverheatingorelectromagneticinterference.CablecompanyNexansisinstallingsuperconductivecablesatParis’sMontparnassestationinpartnershipwithFrenchrailcompanySNCF,helpingtoacceleratelearningfromthistechnology.Inoffshorewind,companieslikeSupernodeareseekingtoapplysuperconductivitytomeshedoffshorewindgridsystems.AtaEuropeanlevel,theSCARLETprojecthassecuredEUHorizonfundingtolookatsuperconductivity.Withoutaddressingbottlenecksinthesupplyofcabletechnologyandgridconnectionavailability,thegrowthofoffshorewindriskssignificantdelay.Longerterm,wecanexpecttoseehigherspecificationcables,aswellasashifttopower-to-Xthatcanmoveoffshorewindtomarketviaothermeans.Butthefundamentalbuildingblockofoffshorewindisareliablegridsystem.Maturemarketsareshowingwhathappenswhengridsystemscannotkeeppacewithoffshorewindaspirations.Newoffshorewindmarketshaveanopportunitytogetaheadofthisfutureproblemandensurethattheonshore/offshoregridsystemisinplaceforgreenelectronstoflow.Part2:TechnologyWithoutaddressingbottlenecksinthesupplyofcabletechnologyandgridconnectionavailability,thegrowthofoffshorewindriskssignificantdelayGWEC.NET48Part2:TechnologyTheongoingenergycrisishasforcedmanycountriestocoupleenergysecurityanddecarbonisationgoals,withgreenhydrogenemergingasoneofthemostpromisingcandidatesforenablingtheenergytransition.GreenhydrogendoesnotemitCO2duringproduction,henceitisideallysuitedtosupportingtheintermittencychallengesofotherrenewableenergysources.Asoffshorewindpowergenerationincreases,aproportionoftheenergygeneratedmaynotreachthepowergridduetocostortechnicalconstraints.Locatingelectrolysersnearoffshorewindfarmswouldenabletheproductionofgreenhydrogen–anattractivepropositionespeciallyforfar-from-shoreprojectsindeepwaters.However,developingahydrogen-basedenergysystemisnotwithoutitschallenges.Despiteincreasingpoliticalmomentumandrenewablehydrogentargetsbeingannouncedinmarketsacrosstheglobe,severaltechnical,policyandinvestmentstepsarestillneededtoevolvethegreenhydrogenindustryalongsidethecontinuedrapidgrowthofoffshorewind.Expertspredictthattheeconomicviabilityofgeneratinghydrogenfromrenewableenergythroughelectrolysiswillimproveovertime,despitetheexistingchallengesofinadequateinfrastructureandhighcosts.Althoughthenecessaryrawmaterialsforthesector’sexpansionhavebeenexpensiveinrecentyears,itisexpectedthatcostreductionswilloccurastheadoptionofgreenhydrogenincreases.TheIEAandIRENApredictthatgreenhydrogenpresentsthegreatestopportunityforcostreductionthrough2030,whencomparedwithunabatedfossilhydrogenorbluehydrogen.22Thesecostcutswillenhancetheeconomicfeasibilityoffurtherdevelopmentandfacilitatetheintegrationofthistechnologyintotheenergymix.IncountriessuchasAustralia,Spain,India,GermanyandtheUS,itisanticipatedthatpotentialsupplychainbottleneckslikehighCAPEXrequirementswillstarttoease,andthatgreenhydrogenwillbecomeanimportantenergysourceforreachingnetzeroby2050.Power-to-XapplicationsGreenhydrogenisproducedviaelectrolysis,fedbyrenewableenergysourcedfromanadjacentassetorthegrid.Wind-to-greenhydrogencanbecompressedandstoredinatanksystemforoffloadingwhenneeded.Throughanoffshorehydrogenationplatform,liquidhydrogencanbeconvertedtoGearingupforgreenhydrogenandpower-to-XTheeconomicviabilityofgeneratinghydrogenfromrenewableenergythroughelectrolysiswillimproveovertime,despitetheexistingchallengesofinadequateinfrastructureandhighcosts22.IEA,IRENAandUNClimateChangeHigh-LevelChampions,BreakthroughAgendaReport,2022.49GWECGLOBALOFFSHOREWINDREPORT2023syntheticnaturalgas(SNG),betterknownasmethane,beforebeingshippedtoendusers.Offshorewindenergycanalsopowerelectrolyserslocatedonoffshoreoilandgasplatformstoproducegreenhydrogenusingseawater.Thegreenhydrogenisblendedintothegasandtransportedtolandviatheexistinginfrastructure.Itisestimatedthatupto20%ofhydrogenbyvolumecanbemixedintoexistinggaspipelineflows.23StoredelectricitycanalsobecombinedwithcapturedCO2tomakecarbon-neutralliquidfuelsorgenerateheatthroughheatpumpsorelectricboilers(power-to-heat),oritcanbecontainedinundergroundformationssuchassaltdomesandfedbacktothegridwhenneeded(power-to-power).Eachsectorwillrequiretargetedapproaches,especiallygiventhevaryingcostsandconversionefficiencyratesattachedtoeachapplication.Power-to-Xisparticularlycapableofprovidingsolutions,feedstockandgreenfuelsforhard-to-electrifysectorssuchasheavyroadtransport,shippingandaviation,aswellassteelandcementproductionandchemicalsmanufacturing.Whiledifferenttypesofhydrogencanbolsterenergysecuritybyreducingimportdependence,mitigatingexposuretofossilfuelpricefluctuationsandboostingsystemflexibility,greenhydrogenisnaturallybestsuitedtosupportthejourneytonetzero.AglobalgreenhydrogenraceRussia’sinvasionofUkrainehasraisedconcernsaboutenergysecurity,promptingaglobalincreaseingreenhydrogentargetsandproposedprojects.Governmentsandtheprivatesectorarecapitalisingontheopportunitiesprovidedbygreenstimuluspoliciesandpackages.Itiswidelyacknowledgedthatthedemandforrenewableexportsisexpectedtosoarasinterestinenergytransitiontechnologiesgrows.Thosewhotakeearlyactionmayhavetheadvantageofdominatingtheemerginggreenhydrogenmarket.Greenhydrogeninitiativesutilisingelectrolyserspoweredbyrenewablesourcesarecurrentlybeingplannedonallcontinents,withEuropeandAustraliaspotlightedbelow,leadingthewaywiththeirlarge-scaleprojectportfoliosinthegigawattrange.EuropeanUnionTheEUestablishedtheEuropeanHydrogenBank(EHB)lastyear,allocatingabudgetof€3billionforitsambitiousREPowerEUtarget,23.GWEC,GlobalOffshoreWindReport2022.Part2:TechnologyGWEC.NET50whichaimstoproduce10milliontonnesperannum(tpa)ofgreenhydrogen.Additionally,theEUplanstoimport10milliontpaofgreenhydrogen.InMarch2023,theEuropeanCommissionannouncedthatthefirstpartofthesupportpackage,a€800millionfundinginitiativetosubsidisegreenhydrogenproduction,issettolaunchbytheendof2023.Furthermore,severalEUmembernationsincludingDenmark,Germany,PortugalandtheNetherlandshaveimplementednationaltenderstoencouragedevelopmentwithintheregion.Denmark’slandmarktenderDenmarklaunchedapower-to-XtenderinApril2023tosupporttheproductionofgreenhydrogen.TheDanishEnergyAgencyhasallocatedatotalbudgetofDKK1.25billion($182.4million)withtheaimofencouragingthedevelopmentofapproximately100-200MWofelectrolysercapacity.Successfulapplicantswillbegrantedfixedpremiumsonaten-yearcontract,withamaximumbidpriceofDKK120/GJhydrogen(equivalenttoapproximately$2.1/kghydrogen).Toensurethatthesupportedamountofhydrogenremainswithinbudgetlimitations,a‘budgetcontrollingceiling’ofDKK70/GJ($1.2/kghydrogen)hasbeenset.Ifanywinningbidexceedsthisthreshold,theDKK1.25billionfundingwillbedividedintotworoundsofDKK750millionandDKK500million,respectively.Anotherimportantaspectofthetenderisthatthesupportprovidedonlycoversupto5,500operationalhoursperyear.Assumingbidsareequaltothebudgetcontrolceilingof$1.2/kg,thetenderwouldpromoteatotalelectrolysercapacityof144MW(equivalentto14,900tpaofhydrogen).Ifbidsareevenlower,bothhydrogenproductionandtheaddedelectrolysercapacitywouldincrease,contributingtoDenmark’sgoalofachieving4–6GWofelectrolysercapacityby2030.BasedonthecurrentpipelineforgreenhydrogensupplyinDenmark,itisexpectedthatelectrolysercapacitywillreach7.2GWby2030,spreadacross30differentprojects.AsiaInAsia,hydrogenroadmapsaredrivenbydemandcreation.BothJapanandKoreaareexploringtheproductionandexportofhydrogenandtheestablishmentofinternationalsupplychains,withaparticularfocusonthetransportsector.CaseStudy:BassOffshoreWindEnergy(BOWE)Equinorhasannounceditssupportforapotentialmulti-GWoffshorewindprojectoffthecoastofTasmania.Theproject,knownasBassOffshoreWindEnergy(BOWE),aimstoharnesstheexceptionalwindresourceintheBassStrait,locatedapproximately30kmoffthenortheasterncoastofTasmaniaandinoneofthedesignatedoffshorewindzonesproposedbytheAustraliangovernment.Theprimaryobjectiveoftheprojectistoprovidesignificantrenewableenergycapacitythatcanbeutilisedforpoweringalarge-scalegreenhydrogenproductioninitiativeinTasmania.Thepartnersofthefixed-bottomwindenergyproject,includingEquinorandlocaldeveloperNexsphere,havenotprovidedaspecifictimescaleforitscompletion.However,thereareambitionstocommenceoperationsasearlyas2026,pendingapprovalfromlocalauthorities.TheprojecthasthepotentialformultiplestagesofdevelopmentandcouldscaleuptoencompassmultipleGWsofinstalledcapacity.Part2:Technology51GWECGLOBALOFFSHOREWINDREPORT2023Chinaisalreadytheworld’slargestproducerandconsumerofhydrogen.TheChinesegovernmenthaslaidoutamedium-andlong-termdevelopmentplanforhydrogen,fortheperiod2021–2035.Hydrogenisalsofeaturedinplansformulatedbyprovincialauthorities.24Currently,China’shydrogenproductionreliesonfossilfuelsandinvolvesstate-ownedandstate-backedcompaniessuchasSPIC,BeijingJingnengandCNOOC.However,theseentitieshaveinitiatedprojectsaimedatgreenhydrogenproduction.Thegovernment’sHydrogenIndustryDevelopmentPlantargetsgreenhydrogenproductionusingrenewablefeedstockresourcestoreach100,000-200,000tonnesperyearby2025.Besidestransport,theplanenvisagestheuseofcleanhydrogeninothersectorsincludingenergystorage,electricitygenerationandindustry.AustraliaTheAustraliangovernmenthassethighambitionsforhydrogenexports,withgrantsavailableatboththestateandfederallevel.InMay2023,itunveiledasignificantrenewablehydrogenpackageworthAUD$2billion($1,275billion)initsannualbudget,markingamajorsteptowardsthecountry’senergytransition.ThefundingwillbededicatedtoscalingupAustralia’sinitiallarge-scalegreenhydrogenprojects.Itwillbedistributedthroughaschemecalled‘HydrogenHeadstart’,whichfollowsacontractfordifferenceauctionmodel.Underthisscheme,developerswillreceivegovernmentcontractsthatprovidelong-termsubsidiesandstablepricing.Additionally,AUD$2millionwillbeallocatedtoprojectsthatsupportindigenouscommunities.ThebudgetincludessubstantialfundingcommitmentsforsolarandwindenergyprojectsandacomprehensivereviewofthestatusofAustralia’senergytransition.Furthermore,ministershaveconfirmedoverAUD$1.6billioninfundingtofacilitateenergyefficiencyupgradesforhomesandsmallbusinesses.AustraliahasagreementswithSouthKoreaandJapantobeginestablishinganinternationalhydrogensupplychain.InJune2023,fivecompaniessignedanagreementontheinitialdesignofaprojecttoproduceandliquifygreenhydrogeninQueensland,AustraliaforexporttoJapan.24.HydrogenIndustryDevelopmentPlan(2021-2035),InternationalEnergyAgency,lastupdated13January2023Part2:TechnologyGWEC.NET52MARKETSTATUS202253GWECGLOBALOFFSHOREWINDREPORT20238.8GWofnewoffshorewindwasfedintothegridlastyear.Thenewadditionsare58%lowerthanthebumperyearof2021butstillmake2022thesecondhighestyearinoffshorewindhistory.lChinacontinuedtoleadglobaloffshorewinddevelopment,althoughnewinstallationsin2022were70%lowerthanin2021–arecordyeardrivenbytheendofthefeed-intariff(FiT).Startingfrom1January2022,China’soffshorewindmarkethasalsoenteredtheeraof‘gridparity’withtheendofnationalFiTs.AlthoughfinancialsupportattheprovinciallevelisstillavailableinGuangdong,JiangsuandShandong,theincentiveismuchlowerthantheFiTpreviouslyofferedbythecentralgovernment.Commissioningmorethan5GWofnewoffshorewindin2022demonstratestheresilienceofChina’soffshorewindindustry.lWith2.5GWoffshorewindcapacityacrosssixcountriesconnectedtothegridin2022,Europeaccountedforthemajorityoftheremainingnewcapacity,asinthepreviousyear.lTheUKhasfurtherconsolidateditsleadingpositionintheEuropeanoffshorewindmarketin2022.InadditiontobringingtheremainingMarketStatus2022Newoffshorewindinstallations(MW)CompoundAnnualGrowthRate.Source:GWECMarketIntelligenceAnnualInstallations15927EuropeChinaRestofworld9020062082007Ofsshareofnewinstallations1%3%23%5-10%45920086622200916842014100220111306201216742013338220152223201644722017429620186243201968522020211062021816117216111455301815643196266136272936331716900901031201094113133924361359267116111516003524931233845877120222460125950527288922911%GWEC.NET54NewoffshorewindinstallationsbymarketNewoffshorewindinstallationsbyregionTotaloffshorewindinstallationsbymarketTotaloffshorewindinstallationsbyregionSource:GWECMarketIntelligence,June2023MarketStatus2022China57.6%France5.5%UnitedKingdom13.4%Germany3.9%Netherlands4.2%Taiwan(China)13.4%Norway2%8.8GWChina48.9%Germany12.5%UnitedKingdom21.6%Denmark3.6%Netherlands4.4%Others9%64.3GWAPAC72%Europe28%8.8GWEurope47.1%APAC52.9%NorthAmerica0.1%64.3GW55GWECGLOBALOFFSHOREWINDREPORT2023windturbines(924MW)onlineatthe1.4GWHornseaProject2,whichisnowtheworld’sbiggestsingleoperationaloffshorewindfarm,theUKhasconnectedtothegrid27unitsofwindturbines(255MW)atthe1.1GWSeagreenproject.lFrancegotitsfirstcommercialoffshorewindproject,the480MWSaint-Nazairewindfarm,fullycommissionedlastNovember,makingitthesecondlargestEuropeanoffshorewindmarketin2022,followedbytheNetherlands(369MW)andGermany(342MW).lItalyalsocommissioneditsfirstcommercialoffshorewindprojectlastyear.The30MWBeleolicooffshorewindfarm,whichfeaturestenMySE3.0-135windturbinesfromMingyang,notonlyrepresentsthefirstinstallationofChinesewindturbinesinEuropeanwatersbutalsothefirstoffshorewindprojectcommissionedattheMediterraneanSea.lInNorway,the94.6MWHywindTampenfloatingwindproject,featuring11unitsofSG-8.6MW-167windturbinesfromSiemensGamesaandaconcreteSPAR-typefloatingfoundation,wasinitiallyscheduledtobecompletedbytheendof2022,butduetosupplychainissuesonlysevenwindturbines(60.2MW)havecomeintooperation.Togetherwithone6.2MWfloatingwindturbinesuppliedbyChineseCSSCHaizhuang,whichwasinstalledonafloaterprototypecalled‘Fuyao’inChina,atotalof66.4MWfloatingwindcapacitywascommissionedin2022.lOutsideofChinaandEurope,twoothermarketsreportednewoffshorewindinstallationsin2022:ChineseTaiwan(1,175MW)andJapan(84MW).InFebruary2022,thelocalBureauofEnergypredictedatotalof2,016MWoffshorewindcapacitywouldbeaddedinTaiwanin2022.However,only145offshorewindturbinesacrossfourprojectswereconnectedlastyear.ThisisdueinparttotheCOVID-19pandemicandtyphoon-relateddisruptions.InJapan,the140MWAkitaNoshiroPortwindfarmachievedfullcommissioninginearly2023.lNointertidaloffshorewindprojectinVietnamreachedcommercialoperationlastyear,althoughmorethan300MWofintertidalprojectcapacitymissedtheirCODdeadlinein2021andmoreturbineswereinstalledatafewintertidalprojectsin2022.ThisisbecausetheceilingpriceusedbyVietnamElectricity(EVN)asthecaptonegotiatePPAswithinvestorsfortheirrenewableenergyprojectswasmissinguntilJanuary2023.lTheUSistheonlymarketwithoffshorewindinoperationintheAmericas,butnooffshoreturbineorprojectwascommissionedin2022,asinthepreviousyear.Thesituationisexpectedtochangewiththefirstpowertobegeneratedatthe806MWVineyardWind1projectinOctoberthisyearandthe132MWSouthForkoffshorewindprojectcomingintooperationbytheendof2023.CumulativeinstallationsTheglobaloffshoremarketgrewonaverageby21%eachyearinthepastdecade,bringingtotalinstallationsto64.3GW,whichaccountedfor7.1%oftotalglobalwindcapacityasoftheendof2022.lIntermsofcumulativeinstallations,ChinaovertooktheUKasthetopmarketin2021,andfurtherconsolidateditsmarketsharein2022.Theotherfourmarketsthatmakeuptheglobaltop-fiveare:theUK(13.9GW).Germany(8.1GW),theNetherlands(2.8GW)andDenmark(2.3GW).lThetotaloffshorewindinstallationsinEuropepassed30GWbytheendof2022,makingup47%oftheglobaltotaloffshore.However,EuropelostitstitleasthelargestoffshorewindregionalmarkettoAsia,asthetotaloffshorewindinstallationsinChinaaloneexceeded30GWbytheendoflastyear.lInadditiontoChina,otherlargeoffshorewindmarketsinAsiaincludeChineseTaiwan(1.4GW),Vietnam(0.8GW),SouthKorea(0.1GW)andJapan(0.1GW).lOutsideEuropeandAsia,NorthAmericahad42MWofoffshorewindinoperationattheendoflastyear,withallinstallationslocatedintheUS.MarketStatus2022l66.4MWfloatingwindwasinstalledin2022,ofwhich60.2MWisfromNorwayand6.2MWfromChina.lAsof2022,atotalof187.8MWnetfloatingwindwasinstalledglobally,ofwhich78MWisintheUK,66.1MWinNorway,25MWinPortugal,11.7MWinChina,5MWinJapanand2MWinFrance.Floatingwind56TheOceanEnergyPathway(OEP)isalarge-scale,multi-yearprogrammeforcontributingtotheaccelerationoftheglobalenergytransition.OEPaimstorampupthedeliveryofoffshorewindthroughcollaborationbetweenindustryandcivilsocietytounlockthepotentialofocean-basedrenewableenergyinnewandunderdevelopedmarkets.TheOEP’sfundamentaltenetisthatsustainablescalingupofthesectorwillonlycomefromhigh-quality,locallyappropriatepolicyandregulationthatencouragesnature-positiveoutcomes,deliversforlocalcommunities,andenableswidereconomicdevelopment.AtrustedpartnerforallstakeholdersBeingindependentofindustry,theOEPisatrustedpartnerthatworkswithgovernments,investors,communitiesandNGOstobuildacompetitiveandsustainableoffshorewindsector.Itskeyaimistoproactivelyaddressthemajorchallengesoffshorewindfacesthroughthreethematicpillars:marketdesignandsupplychains,limitedgovernmentcapacity,andprovidingbenefitsfornatureandcommunity.Marketdesign:howpolicydrivesinvestmentThedevelopmentofdomesticsupplychains–atrendincreasinglyarisingfrompoliticalnecessity–canalsobecomealimitingfactorfortherapidexpansionofoffshorewindinnewcountries.Governmentsandlocalindustrymustworktogetheronnewpolicyinstrumentsandstrategicsupportindevelopingtheirownsupplychainsinawaythatdoesnothinderoffshorewinddevelopment.Thewindindustryneedsconfidenceinpolicymeasurestodriveincreasedinvestmentinmanufacturing,infrastructureandtalent.Unlessthecorrectindustrialpolicychoicesaremade,successforoffshorewindwillbeseverelyconstrained.Governmentcapacity:whyappropriateregulationmattersDeliveringoffshorewindisacomplexpolicydesignchallengefordevelopedbureaucraciesandanevengreateroneforcountriesthatlacktheregulatoryandinstitutionalunderpinningstobuilddeliveryframeworks.Thisaddsuncertaintyandstretchesoutwaittimesfordevelopers.Newoffshorewindmarketsneedahugeamountoflocallyappropriateandfullyalignedpolicyandregulationifthesectoristoscaleuptomeetitstargets.Dealingwithsocio-politicalandecosystemimpactsSocio-politicalchallengesincreasinglythreatenprojectviability.Offshorewindoperatesinacomplex,multi-stakeholderlandscapewherethetechnologyisoftenpoorlyunderstood,engenderingconflictthatcausesadditionalcostsanddelays.Offshorewindcompeteswithexistingoceanusers–sectorsthatOceanEnergyPathway(OEP)Thewindindustryneedsconfidenceinpolicymeasurestodriveincreasedinvestmentinmanufacturing,infrastructureandtalent57GWECGLOBALOFFSHOREWINDREPORT2023mayfeeltheirprospectsarethreatenedbyocean-energytechnologies.Theecosystemimpactsofoffshorewindprojectsarealsopoorlyunderstood,especiallyinnewmarkets,leadingto‘green-on-greenconflict’whereconservationNGOspushbackagainstwindprojects.Acceleratingocean-basedrenewableenergyrequiresnewapproachestodeployment,includingasustainableapproachtooceanstewardship,toavoidtheindustrybeingcaughtinthecrossfireofwiderconversationsaroundoceanmanagement.Innewmarketsespecially,theoffshorewindindustryneedstoestablishearlypartnershipswithconservationgroupsandlocalcommunitiestoshapeemergingregulationsandpoliticalnarratives.HowtoacceleratedeploymentInthemediumtolongterm,thewindindustryandinvestorsmaybeabletocontinuetosinglehandedlybringoffshorewindtoscaleinseveralmarkets.Butgiventhehugeroleoffshorewindmustplayindisplacingfossilfuelsandgettingusontrackfora1.5Cworld,wecannotwaitforthemarketalonetoact.TheOEPknowsthatwhiletherearecommonelementstobuildingasuccessfuloffshorewindsector,itisessentialthatweworkwithintheuniqueeconomicandpoliticalcontextsofeachcountry.Forthisreason,itfocusesonanumberofactionsthatarecrucialtosuccessfulprojectdelivery.ExpertiseandnetworkingBecausethewindindustryhassofardeployedandinvestedinthevastmajorityofoffshorewindprojects,theOEPoccupiesauniquepositiontoconveneandsupportallstakeholdersinthisarea.ItaimstoleverageitsexperienceandconnectionstosupportandcomplementtheworkofotherorganisationsincludingtheWorldBankandtheInternationalRenewableEnergyAgency(IRENA),aswellaspartnergovernmentsandAcceleratingocean-basedrenewableenergyrequiresnewapproachestodeployment,includingasustainableapproachtooceanstewardship.GWEC.NET58theoffshoresectoritself.TheOEPwillcreateanetworkofregionalexpertsthatcanworkwithgovernmentsandstakeholderstobuildknowledgeonoffshorewind.Servingasacatalystforlonger-termsystematicchange,theOEPintendstoprovideexpertswhocansitalongsideofficialsingovernments,ratherthanworkremotelyfromwithinlargeconsultancies.Thiswillallowustosupportlearninginsidenewcountrymarketsandaccelerategrowthinexpertise.TheOEPwillalsomakeanongoingefforttocreateand/orinvestinlocalnetworkstofacilitatedialogueandsharedworkingbetweenoceanandnatureNGOs,communitygroups,industrygroupsandgovernmentstakeholders.TheOEP’sstrategicapproachistofocusoncountrieswithsignificantcarbonfootprints,atriskoffossilfuellock-inandwithsignificantwindresourceswhilealsorespondingpragmaticallytocountry-specificambitions,evolvingpoliticsandeconomics.PrioritycountriesincludeVietnam,Indonesia,thePhilippines,Thailand,India,SouthKorea,Taiwan,Colombia,Brazil,JapanandSouthAfrica.59GWECGLOBALOFFSHOREWINDREPORT2022MARKETSTOWATCHGWEC.NET60Sincetheendof2020,we’veseentheconceptofnetzerobeingembracedbyAsiannationsasakeynationalstrategyfordeliverybymid-century.Theregionhasembracedtheneedforanenergytransitionintoanewsystemwithahighshareofrenewableenergy.Offshorewind,duetoitshightechnicalpotential,highenergyoutputandhugecostreductionpotential,hasbecomeatopchoiceforsomeAsiancountrieswhenitcomestoplanningasuccessfulenergytransition.SeveralmarketsinAPAChavehighoffshorewindtargets.Japanhasatargetof10GWby2030and30–45GWby2040;Korea14.2GWby2030;Vietnam6GWby2030.ThePhilippines,despitenothavingatechnology-specifictarget,isalsolikelytoemergeasamajorGW-sizemarketforoffshorewindbytheendofthedecade.Despitethehighambitions,therearemanychallengesahead.Howwelltheseissuescanbetackledwilldeterminehowsuccessfullyambitionscanbedeliveredinthefuture.lManymarketslackaroute-to-marketstrategy,involvingclearguidancefromgovernmentsonpolicy,includingmarinespatialplanning,leasingandthepermittingpolicyprocess,aswellastheprocesstodeterminetheprojectofftakerandofftakeprice.InmostAPACcountries,theroutetomarketforoffshorewindisintheearlystagesofdevelopment.Duetothecomplexityofoffshorewindprojects,governmentsaroundtheregionalsosufferfromapoorunderstandingofthedifferentprocessesinvolvedandtheinteractionsbetweenthem,whichoftencausesfurtherdelaysorpolicyconfusion.GWEChopesthateffectiveroute-to-marketpoliciesandprocessescanbeintroducedineachmarketsoon.lThenextchallengeafteraroutetomarketisanindustrialpolicythatfacilitatesoffshorewinddevelopment.Thisfundamentallybreaksdownintoplansandpoliciesthatrelatetothreeareas:supplychain,infrastructureandworkforce.lSupplychainchallengeshavethepotentialtobecomeamajorbottleneckforthedeliveryofoffshorewindtargetsineachcountry.Becauseittakesyearsforasupplychaintogetstarted,andtheAPACmarketsaredevelopingrapidly,thepressureonthesupplychaincanbehuge.Thiscallsforamorecoordinatedapproach.Insomeofthemarkets,policiessuchasprescriptivelocalcontentrequirementswilldefinitelyaddfurtherstraintosupplychaincrunches.lAnever-presentchallengeforrenewableenergydevelopment,thegridwillpresentsimilarchallengesintheoffshorewindsector,whichrequiresbothpolicyandplanningeffortsfromthegovernment.Portsandotherinfrastructurearenewchallengesthatcanfurtherslowoffshorewinddevelopmentinallmarkets.lTheoffshorewindsectorhashugedemandsintermsofworkforce,whichisbothachallengeandanopportunity.Itisanopportunityforjobcreation,andforajusttransitionfromjobsthatarebecomingredundant.However,itposesthechallengeofrequiringlargeamountsofskilledlabourintheregionataroundthesametime.Overcomingthesechallengesandgraspingtheopportunitieswillrequireacollaborativeeffortfromgovernments,industryandthirdparties,includingassociationsandacademics.AsiaPacificMarketstoWatch61GWECGLOBALOFFSHOREWINDREPORT2023TheAustraliangovernmenthascommittedtoa43%reductioninthecountry’semissionsby2030andtonetzeroby2050.TheestablishmentofanoffshorewindsectorinAustraliawillplayanimportantroleindecarbonisationoftheenergysector.InAugust2022,thefederalgovernmentannouncedtheestablishmentofseveraloffshorewindzonesaroundthecountry(Gippsland,HunterValley,Illawarra,Portland,NorthernTasmania,PerthandBunbury).Theindustryhasbeenencouragingthefederalgovernmenttosetnationaltargetsforoffshorewind,butasyettherehavebeennovolumetargetsattachedtothezones.TheVictorianstategovernmentdecidedtoprovidesomebusinesscasecertaintytoinvestorswhenitsetanambitioustargetof2GWofoffshoregenerationby2032,4GWofoffshorewindcapacityby2035and9GWby2040.Industryhasrespondedpositivelytothetargets,withtheinitialfeasibilitylicenceapplicationforGippslandattracting37applicationsforthezone.VictoriahasalsosetupOffshoreWindEnergyVictoria(OWEV)toactasaone-stop-shopforoffshorewind.OWEVhasalreadyreleasedtwoofthreeimplementationstatementstoprovideclaritytoindustryaroundprocurement,transmission,ports,policy,workforcedevelopment,legislationandreform.Thethirdstatementisdueforreleasebeforeyear’send.InNewSouthWales,thestateisstillconsideringtheintroductionofstate-basedtargetsforitsHunterValleyandIllawarrazones.SincecomingtopowerinMarch2023,thenewlyelectedstateLaboradministrationhashintedthatitintendstointroducetargets,butasyettherearenotargetsdefined.Thisisdespitethefactthat,inJuly2023,thefederalgovernmentdeclaredtheHunterValleyzoneopenforfeasibilitylicenceapplications,withtheprocessduetocloseattheendofAugust.CommittedtoadoptingbestpracticeAlthoughbeingrelativelynewtotheoffshorewindspace,Australiahasproveditselftohavesupportive,forward-lookingregulations.TheOffshoreElectricityInfrastructureAct2021(OEIAct)providesthelegalframeworkforoffshorerenewableenergyprojectsandactivitiesinCommonwealthwaters.Itenteredforceon2June2022andenablesthefulllifecyclefortheconstruction,implementation,anddecommissioningofoffshorerenewableenergyinfrastructure.TheOEIActprohibitspeoplefromundertakingoffshoreinfrastructureactivitieswithoutalicence.Theframeworkisnotlimitedtooffshorewindprojects.Ithasbeendesignedtobeflexible,sothatitcanadapttonewemergingoffshorerenewableenergytechnologiesthatmaycomethroughovertime,allowingindustrytodrivehowitdevelopsinAustralia.ThelicenceprocessIn2022thereweresomebigpoliticalmomentsforoffshorewindinAustraliaMarketstoWatchGWEC.NET62Australia.Thegovernmentintroducedthefirststageofregulationstosupporttheestablishmentofoffshorewindandhelpdecarbonisetheeconomy:OffshoreElectricityInfrastructureRegulations2022,OffshoreElectricityInfrastructure(RegulatoryLevies)Regulations2022andCostRecoveryImplementationStatement(CRIS).Australiaintroducedafeasibilitylicenceaspartofitsleasingprocess.Thelicenceareaofafeasibilitylicencecannotoverlapwiththelicenceareaofanotherfeasibilityorcommerciallicence.Thegrantingoffeasibilitylicencesisacompetitiveprocess.Theministerwillgrantafeasibilitylicencebasedonmerit,includingwhethertheapplicanthasthefinancialandtechnicalcapabilitiestoundertaketheproposedproject.Incircumstanceswherelicenceapplicationsoverlapandaresimilarlymeritorious,theministermayinvitefinancialofferstoseparatetheproposals.AustraliacommitstoGlobalOffshoreWindAllianceAtCOP27inNovember2022,GWECactivelyengagedwiththeMinisterforIndustry,EnergyandEmissionsReductionofAustralia–ChrisBowen.WitheffortsfromGWEC,DenmarkandIRENA,MinisterChrisBowencommittedtotheGlobalOffshoreWindAlliance(GOWA),resultinginAustraliabecomingamemberofGOWAtogetherwith12othercountriesatthetime.Increasingactivityin2023FollowingthesuccessofthefirstconsultationforGippslandin2022,theDepartmentofClimateChange,Energy,theEnvironmentandWater(DCCEEW)launchedtwootherconsultationsintheHunterandSouthernOceanRegioninFebruary2023andJune2023,respectively.Theindustryexpectsmoregoodnewsfromthegovernmentinthecomingmonths,withPerthandBunburyactivelylookingtoputforwardcasesforWesternAustraliatobeconsideredinthenexttrancheofconsultations.UnlockingpotentialWhilethefirstfeasibilitylicencesareexpectedtobeawardedinGippslandbeforetheendof2023,thereareanumberofchallengesthatAustralianeedstoconsiderbeforetheseprojectscanberealised.Commonoffshorewindchallengeslikegridconnection,portinfrastructure,accesstovessels,workforcedevelopment(includingskillstraining)andsupplychaincapacityarenotuniquetoAustraliaorotheremergingmarkets,buttheywillneedtobedealtwithoverthenexttwoyearstoensuredeliverytimeframescanbemet.Intermsofsupplychain,Australia’sshareofmanufacturingandsupplychainactivityinmostrenewableenergysectorsislow,althoughseveralrecentreportshavedocumentedopportunitiesinthemarket.InvestingininfrastructuretostrengthenthedomesticsupplychainisvitaltohelpAustraliareducecostsforoffshorewindandensurejobcreation.25Governmentsatboththefederalandstatelevelhavebeenrampinguptheircapacitytodealwiththerapidrolloutandhugeinterestinthemarket.Lessonslearnedfromthefirstfeasibilitylicenceprocessarehelpingtoshapetherolloutoffuturelicences.Whilenomarketiseverperfect,Australia’scommitmenttoiterativelearningandconstantimprovementinprocessesandregulationsaroundoffshorewindarecausingothermarketstolooktoemulatethecountry’sinitialsuccessinbuildingamarket.MarketstoWatchMarketstoWatch25.Briggs,C.,M.Hemer,P.Howard,R.Langdon,P.Marsh,S.TeskeandD.Carrascosa(2021).OffshoreWindEnergyinAustralia:BlueEconomyCooperativeResearchCentre,Launceston,TAS.92p.63GWECGLOBALOFFSHOREWINDREPORT2023WhileneighbouringAustraliahasprogressedrapidlyinthelastdecadethankstoacombinationoffederalandstateactivity,interestinoffshorewindenergyhadnotcrossedtheTasmanSeatoNewZealanduntilrecently.Thankstolongstandinghydrogenerationinfrastructurecapableofsupplyingoverhalfofthecountry’selectricityneeds,NewZealandhastraditionallybeenseenasanationalreadyincontrolofitspowersectordecarbonisation.However,raisedclimateambition,coupledwithgrowingconcernsovertheimpactsofclimatechangeonhydropowertandtherealisationthattheglobalshifttowardselectrificationwillmeanincreasingpowergeneration,hasputaspotlightondevelopmentofoffshorewind.TechnicalpotentialmuchgreaterthanpowerneedsThecountryhasatechnicalpotentialof2,252GW,27againstcurrentgenerationcapacityof11GW.28Governmentmodellingindicatesthatelectricitydemandcouldincreasebybetween18%and78%dependentoneconomicgrowth,technologychoicesandpolicy.Despitethewiderangeongrowthprojections,thishighlightstheneedtosupportnewrenewableelectricityprojectsaspartofNewZealand’scommitmenttomeeting50%ofitsenergyneedswithrenewablesourcesby2035.Withatechnicalresourcemanytimesitscurrentandfuturepowerneeds,onlyafractionofthisresourceneedstobedevelopedtomeetNewZealand’spowerneeds,thoughopportunitiesmayarisefrompower-To-Xmarketsandtheexportoflow-carbonfuels.ApredominantlyfloatingoffshorewindmarketWhileNewZealand’stechnicalresourceisprimarilyfloating,itsfixedresourceof148GWstillprovidesplentyofscopefordevelopment.Buttheemergingmarketisfocusedonfloatingormixedfoundationoffshoreprojects.Almost9GWofprojectsareattheearlydevelopmentstageandallareeitherfloating,mixedorsettobedevelopedasphasesoffixedandthenfloatingoffshorewind.AlmostallactivityiscurrentlyfocusedonthewestsideoftheNorthIslandinNewZealandWaikatoPhase2(1000MW)OceanexTaranaki1(1000MW)WestTaranaki(1250MW)SouthTaranaki(900MW)OceanexWaikato(1000MW)WaikatoPhase1(250MW)OceanexTaranaki2(1000MW)TaranakiBight(1000MW)ChristchurchSouthland(1250MW)Source:RUKMarketstoWatchMarketstoWatch26.TeManaHiko–NZElectricalAuthority(2023)(https://www.ea.govt.nz/news/eye-on-electricity/the-impact-of-our-climate-on-hydro-generation/)27.OREAC(2020)(https://gwec.net/oreac/)28.Ember(2023)GlobalElectricityReview2022(https://ember-climate.org/insights/research/global-electricity-review-2022/)GWEC.NET64theWaikatoandTaranakiregions,closetodemandcentres.ThiswouldalsohelpreducetheNorthIsland’sdependenceonthehydropowergenerationassetsconcentratedontheSouthIsland,thoughthereisaninterestinoffshorewindaroundtheSouthIslandaswell.FloatingspecialistBlueFloatEnergy,inpartnershipwithEnergyEstateandElementalGroup,hasplanstodevelop5GWofoffshorewindcapacitythroughfourprojectsinWaikato,TaranakiandSouthlandatthesoutheasterntipoftheSouthIsland.ThefirstphaseofitsWaikatoprojectwillbe250MWoffixedoffshorewind,withasecondphaseof1,150MWusingsolelyfloatingtechnologies.Its1,250MWTaranakiand1,250MWSouthlandprojectswillalsobefloating.AdjacenttoitsTaranakiproject,CIPandtheNZSuperFundareproposinga1GWfloatingprojectatTaranakiBight,andrecentlydeployedfloatinglidartocommencesitemeasurements.AustraliancompanyOceanex–ledbytheoriginalbackersofAustralia’sStaroftheSouthproject–hastwoprojectsindevelopment:the2GWinTaranaki,tobedevelopedastwo1GWphases,andthe1GWinWaikato.Boththeseprojectsareexpectedtouseamixoffixedandfloatingtechnology.EstablishingthecorrectregulatoryframeworkandbuildcooperationwithinindustryWhiledevelopmentactivityisongoing,effortsarealsounderwaytoputinplacethecorrectregulatoryframeworktosupportoffshorewindgrowth.TheMinistryofBusiness,InnovationandEmployment(MBIE)iscurrentlyreviewingresponsesfromitsDecember2022toApril2023consultationprocessonwhatapproachitshouldtaketoidentifyingsuitableareasfordevelopingoffshorerenewableenergyandmantagingfeasibilityactivitiesintheshortterm.29MBIEsetoutproposalstocoverwhatenablingactivitiesareneededtosupportoffshorerenewableenergyprojectsandplanstoconsultlaterin2023onissuessuchasconstruction,operationanddecommissioning.Ithascommittedtoputtingthenecessaryregulatoryframeworkinplaceby2024.AlongsideworkbytheNZGovernment,TeWaihanga–theNewZealandInfrastructureCommission–islookingattheinfrastructurerequirementsforsupportinggrowthofoffshorewindandotherrenewabletechnologies.Itestimatesthatthecountryneedstoaddanaverageof494MWoflow-emissionelectricitygenerationcapacityeveryyearforthenext30yearstomeetelectricity’scontributiontoachievingNewZealand’snetzerocarbontarget.30Meanwhile,theindustryisseekingtobuildcooperation.TheNewZealandWindEnergyAssociationisworkinginsupportofoffshorewind,whileregionaldevelopmentagencyVentureTaranakiisworkingtoholdoffshorewindeventsbringingtogetheroffshorewinddevelopersandlocalpartners.Withgrowingdeveloperambitions,muchwilldependonhowthegovernmentdecidestoregulateoffshorewindandwhereitsetsitslevelofambitionfornewoffshorewindcapacity.Thecountrycertainlyhasthepotentialandtheopportunitytouseoffshorewindtogrowitseconomyandbringwiderbenefittoindigenousstakeholdersandlocalcommunities.MarketstoWatch29.Seehttps://www.mbie.govt.nz/have-your-say/enabling-investment-in-offshore-renewable-energy/30.TeWaihanga(2022)Leveragingourenergyresourcestoreduceglobalemissionsandincreaseourlivingstandards(https://www.tewaihanga.govt.nz/assets/Uploads/Leveraging-our-energy-resources.pdf)65GWECGLOBALOFFSHOREWINDREPORT2023WithJapan’sfirstcommercial-scaleoffshorewindfarmachievingcommercialoperationsatthebeginningof2023,the140MWAkitaNoshiroOffshoreWindprojectmarksanewmilestonefortheJapanesewindindustryandsignalsthestartofarapidscale-upofJapan’soffshorewindcapacity.Thecurrentcumulativeoffshoreinstalledcapacitystandsat136MWattheendof2022,leavingabiggaptofillifJapanwantstoachieveitstargetof10GWinstalledcapacityby2030,asoutlinedintheVisionfortheOffshoreWindPowerIndustry(1st).Althoughtherateofoffshoredeploymentisfarfromideal,Japanisahugeoffshorewindmarketthatistooimportanttomiss.Japanhasthesixth-longestcoastlineintheworldwithmassiveuncapturedfloatingwindresources.Italsohasalonghistoryofheavyindustrymanufacturingcapabilityandexpertisethatcaneffectivelybebuiltupontopositionthecountryastheregionaloffshorewindhub.ThegovernmenthastakenproactivestepsinrecentmonthstoexplorethepossibilityofdevelopingoffshorewindwithintheExclusiveEconomicZone(EEZ)andtounlocktheindustrialisationopportunityofferedbyfloatingoffshorewind.Round2:OffshorewinddevelopmentwithinterritorialwatersOn28December2022,thegovernmentlaunchedthesecondroundofpublictendersforoffshorewinddevelopmentwithinterritorialwatersunderthe‘PromotionofUseofMarineAreasforDevelopmentofMarineRenewableEnergyGenerationFacilitiesAct’.FourpromotionzonesareincludedintheRound2publictenders,contributingmorethan1.8GWofnewinstallationcapacity.Bidsweresubmittedby30June2023–itisunclearhowmany,duetorevisedguidelinespreventingcompaniesfromdisclosingtheirintentiontoparticipate.ThewinnerswillbeannouncedassoonasDecemberthisyearorMarch2024latest.InviewofconcernsrelatedtothebiddingrequirementsandproceduresforRound1,thegovernmentintroducedanumberofrevisionstotheRound2tenderprocessandguidelines.Arevised‘GuidelinefortheOperationofPublicTendersforOccupancyofGeneralWater’wasreleasedinOctober2022,specifyingthatbiddersshouldbeevaluatedonascaleof240points,withanequalallocationof120pointsforbidpriceandprojectfeasibility.RevisionsincludetheintroductionofacaponthemaximumprojectallocationvolumeforeachcompanyJapanProjectsauctionedinJapanRound2TenderNoSeaArea(ha)Output(MW)SeaAreaPPAupperlimitBasePort1Happou-cho/Noshiro-city,AkitaPref.3239.4285-356MW19JPY/kWh(14euro/MWh)AkitaPortorNoshiroPort2Oga-city/Katagami-city/Akita-city,AkitaPref.5515.3269-336MW19JPY/kWh(14euro/MWh)AkitaPortorNoshiroPort3Murakami-city/Tainai-city,NiigataPref.9188.1282-700MW19JPY/kWh(14euro/MWh)NiigataPort4EnoshimaSaikai-city,NagasakiPref.3983.899-300MW29JPY/kWh(21euro/MWh)KitakyushuPortMarketstoWatchGWEC.NET66orconsortium,thereplacementofthefeed-intariff(FiT)withanewfeed-inpremium(FiP)andvariousevaluationmethodsforprojectfeasibility.Thebidderwiththehighestoverallscoreforfeasibilityinaparticularpromotionzonewillnowreceiveafullscoreof120toensurea1:1weightingratioonpriceandprojectfeasibility.Furthermore,aspeedfactorhasbeenintroducedthatrewardswithamaximumof20pointsbidswiththeearliestreasonableCommercialOperationDate(COD)andimposesapenaltyof13,000JPY/kW($90/kW)iftheprojectisnotdeliveredbytheproposeddate.AlthoughthegovernmenthasattemptedtoaddressvariousconcernsandchallengesrelatedtoRound1andapplythelessonslearnedtoRound2,majorchallengesrelatedtothecurrenttendersystemremain.Thereisstillalackoftransparencyrelatedtobidevaluationasitisunclearhowprojectfeasibilitycanbefairlyevaluatedandmeasuredwithaclearguidingprinciple.TheintroductionoftheFiPrequiresbidderstoarrangetheirownpowerpurchaseagreements(PPAs)andmanycompanieshave15.Ishikari,Hokkaido17.Shimamaki,Hokkaido16.Gann-uandMinami-Shiribeshi,Hokkaido19.Matsumae,Hokkaido18.Hiyama,Hokkaido20.Mutsubay,AomoriPrefAuctionalreadydone(Round1)1.Goto,NagasakiPref.Underauction(Round2)6.Happou-cho/Noshiro-city,AkitaPref.2.Noshiro-city,AkitaPref.3.Yurihonjo-city,AkitaPref.(North)4.Yurihonjo-city,AkitaPref.(South)5.Choshi-city,ChibaPref.PromotingArea7.OgaKitakata,Akita-city,AkitaPref.8.Murakami&Tanai-cityNiigataPref.9.Enoshima/Saikai-city,NagasakiPref11.Isumi-city,ChibaPref.10.Yuza-machi,YagamataPref.12.AomoriPref.(JapanSeaNorth)13.AomoriPref.(JapanSouthSea)14.Kujukuri,HokkaidoUpcomingArea15.Ishikari,Hokkaido16.Gann-uandMinami-Shiribeshi,Hokkaido17.Shimamaki,Hokkaido18.Hiyama,Hokkaido19.Matsumae,Hokkaiodo20.Mutsubay,AomoriPref.21.Kuji-city,IwatePref.22.Awara-city,FukuiPref.23.HibikinadaKitayushu,FukuokaPref.24.Karatsu-city,SagaPref.25.Eastarea,ToyamaPref.23.HibikinadaKitakyushu,FukuokaPref.24.Karatsu-city,SagaPref21.Kuji-city,IwatePref.UnderbiddngevaulationPrepareconstructionUnderconstruction11.Isumi-city,ChibaPref.5.Choshi,ChibaPref.14.Kujukuri,ChibaPref.9.Enoshima/Saikai-city,NagasakiPref.1.Goto,NagasakiPref.12.AomoriPref.(JapanSeaNorth)13.AomoriPref.(JapanSeaSouth)6.Happou-cho/Noshiro-city,AkitaPref.2.Noshiro-city,AkitaPref.3.Yurihonjo,AkitaPref.(North)4.Yurihonjo,AkitaPref.(South)7.OgaKitakata,Akita-city,AkitaPref.10.Yuza-machi,YamagataPref.8.Murakami/Tainai-cityNiigataPref.22.Awari-city,FukuiPref.25.Eastarea,ToyamaPref.PromotedinMay2023OffshoreWindPowerDevelopmentatGeneralSeaAreaJapanOffshoreWindDevelopmentAreaswithintheTerritoryWaterMarketstoWatchSource:JWPA,July202367GWECGLOBALOFFSHOREWINDREPORT2023experiencedsignificantchallengesarrangingthesedealsatthecurrentFiPprice.TheoutcomeoftheRound2tenderwillonceagainimpactthetimelineofthefollowingtenderroundandsendasignaltoexistingandpotentialdevelopersaboutbenefitsandcostsofcontinuingtoparticipatein,enteringorleavingJapan’soffshorewindmarket.Thecurrenttenderprocessandrulesarenotperfectandfuturerevisionstotheexistingruleswillbeneededtospeedupsiteidentification,streamlinepermittingandconsentingprocessesandaccelerateoffshorewinddevelopment,toestablishavisibleprojectpipelinethatprovidesmarketconfidenceandattractsmoreforeigndirectinvestmentintoJapan.CapturingoffshorewindpotentialintheExclusiveEconomicZone(EEZ)Japanhas236GWoffloatingoffshorewindtechnicalpotential,comparedwith156GWforthefixed-bottomtype.ThemajorityofitsfloatingwindpotentialliesbeyondterritorialwatersandwithintheEEZ(12nmfromshore).AccordingtoGWEC’smembers,EEZareasentailarelesspronetostakeholderconflicts,whichwilleffectivelystreamlinesiteallocation,consentingandpermittingprocesses.31InOctober2022,theCabinetOfficeformedastudygroupandheldfivemeetingstodiscussthepossibilityofdevelopingoffshorewindintheEEZ.TherearecurrentlynolawsgoverningtheuseofEEZwatersbutthe4thBasicPlanonOceanPolicyadoptedviaaCabinetDecisionon28Aprilthisyearsolidifiedthegovernment’splantoactivelydeployoffshorewindintheEEZ.ItstatedthatoffshorewindpowergenerationisthekeyrenewableenergyforJapantoachievecarbonneutralityand,onthisbasis,thegovernmentwilldeveloplawsandregulationstoFloatingOffshoreWindDemonstrationProjectImplementationTimeline20222024~2023July-SepOct-DecJan-MarJuly-SepOct-DecJan-MarApr-JuneDefineFloatingDemonstrationProjectSiteSelectionCriteriaWorkingGroupReportPrefecturegovernementproposalsAnnouncethesitesforFloatingDemonstrationProjectsDeveloperSelectionFloatingdemonstrationprojectdevelopmentMarketstoWatch31.AssessingthepotentialareasfordevelopingoffshorewindenergyinJapaneseterritorialwatersconsideringnationalzoningandpossiblesocialconflicts(HideakiObane,2021)-https://www.researchgate.net/publication/350705524Source:METI,2022GWEC.NET68facilitatethedeploymentofoffshorewindpowerintheEEZ.32TheracetobecometheleadingfloatingoffshorewindhubWhileEuropeiscurrentlyleadingtheway,floatingoffshorewindisrapidlyemergingasasignificantopportunityforAPACcountries.33Withonly187.8MWoffloatingoffshorewindinstalledgloballyandlessthanhalfinAPAC,thereisnoclearfloatingoffshorewindleaderinsightfortheregion.AstheonlyEastAsiancountrywith5MWoffloatingoffshorewindinstalled–attheGotofloatingprojectin2019–Japanisinanidealpositiontostrengthenitsfootprintandleadtheregionalconversationonfloatingoffshorewind.34Inthepastfewmonths,withvariousprogressmadebythegovernment(METI),weareseeinggreatmomentumsurroundingfloatingoffshorewindinJapan.TheBasicPlanfortheGreenTransformation(GX)Policy–aten-yeardecarbonisationroadmap–althoughlargelycentredonthereactivationofnuclearpower,reflectsthegovernment’sincreasingcommitmenttoexpandinggridandinfrastructuretofacilitatetheuptakeofrenewableenergyincludingfloatingoffshorewind.34Notably,thegovernmenthassetasideanJPY85billion($58million)subsidytosupporttwolarge-scalefloatingdemonstrationprojectstobetenderedbyMarch2024.TheproposeddemonstrationsiteswillbereleasedbetweenJulyandSeptemberthisyear,andtheAkitaPrefecturalgovernmenthasproposedYurihonjooffshoreseaareaaspotentialsitesforconsideration.36AdedicatedFloatingOffshoreWindIndustryStrategyWorkingGroup37wasformedinJune2023bythePublic-PrivateDialogueCouncilwiththegoalofintroducingaseparatefloatingoffshorewindtargetanddevelopinganindustrialisationplantodeliverthetargetbytheendofthisyear.GWECandtheJapanWindPowerAssociation(JWPA)arecommittedtoworkingcloselywithgovernmentandindustrytodrawlessonsfrominternationalbestpracticesandapplythemtotheJapanesecontext.AnambitiousfloatingtargetsupportedbyaclearandrobustdevelopmentframeworkisthekeytostartingJapan’sfloatingwinddevelopmentontherightnoteandisfundamentaltothelong-termsuccessofitsoffshorewindindustrialisationstrategy.WithalongdevelopmenttimelineofseventoeightyearsfromprojectallocationtoCOD,theIEAexpectsthatonly0.5GWofnewcapacityislikelytobecommissionedinJapanbetween2022and2027,meaningthatthe2030offshorewindtargetisonlyachievableifthemainbulkofthecapacitycanbedeliveredwithinthreeyearsbetween2027and2030.38GWEC’sanalysisalsoshowsthat,forJapantoachieveits2040offshorewindtargets,itwillhavetoincreaseitsannualtenderallocationfromanaverageof1GWtomorethan4GWfrom2026.OffshorewindresourceswithinJapan’sEEZoffersignificantopportunitiesandarereadilyavailableforJapantomeetitstargetandachieveits2050decarbonisationgoal.JapanmustrapidlydeployoffshorewindprojectsinparallelwithinterritorialwatersandEEZwaters.MarketstoWatch32.Japan:OutlineOfTheFourthMasterPlanOnOceanPolicy(AndersonMori&Tomotsune,2023)33.FloatingOffshoreWind-AGlobalOpportunity(GWEC,2022)34.https://www.enecho.meti.go.jp/en/category/special/article/detail_178.html35.https://www.meti.go.jp/shingikai/enecho/denryoku_gas/saisei_kano/yojo_furyoku/pdf/015_s01_00.pdf36.https://www3.nhk.or.jp/lnews/akita/20230620/6010017898.html37.https://www.meti.go.jp/press/2023/06/20230623003/20230623003.html38.Renewables2022Analysisandforecastto2027(IEA,2023)69GWECGLOBALOFFSHOREWINDREPORT2023SouthKoreahasemergedasapromisingplayerintheAPACoffshorewindindustry,boostingsubstantialpotentialforgrowthwitha2030deploymenttargetof14.3GW.Thecountry’sexistingmanufacturingcompetitivenessisalsoapositivesignforestablishingaresilientoffshorewindsupplychain,asevidencedbysignificantinvestmentsfromVestasandCIPin2023.Thecountryhasastaggeringfloatingoffshorewindpowerpotentialcapacityof277GW39and6.7GWoffloatingoffshorewindprojectsinthepermittingpipeline,makingKorea’sfloatingoffshorewindpipelineoneofthebiggestintheworld.40ThekeytorealisingSouthKorea’soffshorewindpotentialDespitethesepromisingdevelopments,SouthKorea’scurrentinstalledcapacitystandsatamere124.5MW.Whilethetotaloffshorewindcapacityofgrantedelectricbusinesslicences(EBL)reachedanimpressive20.8GWasofDecember2022,manyprojectsfacedbottlenecksandlengthypermittingprocessesduetoalackofpolicysupportandregulatoryclarity.TofullyrealiseSouthKorea’soffshorewindpotentialandacceleratedeployment,crucialattentionisrequiredtoaddressthefollowingkeyissues:1.Expeditetheintroductionofagovernment-ledsiteselectionandtendersystemTofacilitatetheexpansionofSouthKorea’soffshorewindmarket,theintroductionofagovernment-ledsiteselectionandauctionisparamount.Agovernment-ledapproachwouldoffergreaterclarityandcertaintytooffshorewindmanufacturerswhileensuringrobustdevelopmentofthesupplychainbasedonavisibleprojectpipeline.Currently,offshorewinddevelopmentinSouthKoreafollowsanopen-doorapproach,whichledtoaninefficientpermittingprocessthatreviewssitesonlyafterobtainingEBLs,hencegeneratingahighlevelofuncertainty.Anewschemeisexpectedtointroducea‘dual-track’systemforoffshorewinddevelopmentinSouthKoreaAgovernment-ledapproachwouldoffergreaterclarityandcertaintytooffshorewindmanufacturerswhileensuringrobustdevelopmentofthesupplychainbasedonavisibleprojectpipeline.MarketstoWatch39.2050ClimateNeutralityRoadmapforKorea-K-MapScenario:ImplementinganambitiousdecarbonizationpathwayforthebenefitoffuturegenerationsandtheKoreaneconomy(Access:https://gesi.kr/forum/view/202264)40.https://www.powerinfotoday.com/wind-energy/south-korea-to-spend-40-billion-on-worlds-biggest-floating-wind-farm/GWEC.NET70Korea.Newprojectswouldbesubjecttoagovernment-ledsiteselectionandauctionprocesswhileexistingprojectswithEBLswouldbegiventheoptiontocontinuedevelopmentundertheEBLtrack.However,theEBLtrackinvolvesamorecomplexandcumbersomepermittingprocess,asexplainedinthenextsection.Anoffshorewindbilltointroducesuchadual-tracksystemhadbeenpendingintheKoreanNationalAssemblyformorethantwoyearsasofJuly2023.2.StreamlinethelicensingprocessforexistingElectricityBusinessLicense(EBL)trackprojectsAsSouthKoreacontinuestodeliberateontheintroductionoftheoffshorewindbill,thechallengeliesinsupportingthe20.8GWofEBLNo.RelevantlawDetailsofpermitsandconsultations1NationalLandPlanningandUtilisationActDecisiononurbanorGunmanagementplans,authorisationofdevelopmentactivities,designationofbusinessentitiesperformingurbanorGunplannedprojects,approvalofimplementationplans2UrbanDevelopmentActApprovalofactionswithinurbandevelopmentzones3RoadActApprovalofperformanceofroadworks,approvalofpermissiontooccupyanduseroads4PrivateRoadActApprovalofbuildingpermitsforprivateroads5RiverActApprovalofperformanceofriverworks,approvalofpermissiontooccupyanduserivers,approvalofpermissiontouseriverwater6PublicWatersManagementandReclamationActPermissiontouseandoccupypublicwaters,authorisationorreportofimplementationplans,reclamationlicenceofpublicwaters,consultationorapprovalofreclamationbythegovernment,etc.,approvalofimplementationplanforreclamationofsharedwaters7WaterSupplyandWaterworksInstallationActApprovalofinstallationofexclusivewaterworks,approvalofinstallationofexclusiveindustrialwaterworks8NaturalParksActApprovalofactionswithinparkareas9FarmlandActChangeandcancellationofagriculturalpromotionareas,approvalandconsultationofpermissiontodivertfarmland,reportondiversionoffarmland,permissiontotemporarilyusefarmlandforotherpurposes10MountainousDistrictsManagementActApprovalofconversionofmountainousdistricts,reportonconversionofmountainousdistricts,permissionandreporttotemporarilyusemountainousdistricts,approvalofgatheringearthorstones11CreationandManagementofForestResourcesActApprovalandreportofstandingtimber,etc.12StateForestAdministrationandManagementActApprovalofleaseanduseofstateforests13ErosionControlWorkActApprovaloflumbering,etc.,cancellationofdesignationaslandforerosioncontrol14ProtectionofMilitaryBasesandInstallationsActConsultationonapprovalofadministrativeagencies,etc.15GrasslandActApprovalofchangeofformandqualityofgrassland,approvaloftheconversionoftheuseofgrassland16HarborActApprovalofimplementationofharbourdevelopmentprojects,approvalofharbourdevelopmentprojectimplementationplan17ActonFuneralServicesApprovalofreburial18MiningIndustryActDispositionofnon-permission,cancellationofminingrights,orreductionofminingareas19CountermeasuresAgainstNaturalDisastersActConsultationondisasterimpactassessment,etc.20ElectricUtilityActApprovalofelectricutilitybusiness21NaturalEnvironmentConservationActConsultationontheimpactonnaturalscenery22ActonProtectionandInspectionofBuriedCulturalHeritageConsultationontheresultsofgroundsurfaceinspectionforculturalheritage23CulturalHeritageProtectionActPermissionofactsonstate-designatedculturalheritage24AgriculturalandFishingVillagesImprovementActPermissiontouseagriculturalinfrastructure25MaritimeSafetyActMaritimetrafficsafetyexamination26ActontheMaintenanceandImprovementofRoadNetworksinAgriculturalandFishingVillagesPermissiontouseandoccupyroads27LandscapeActDeliberationonlandscapesofdevelopmentprojects,deliberationonlandscapesofbuildings28WetlandsConservationActPermissionofactswithinwetlandprotectionareas29AidstoNavigationActApprovalofestablishmentandmanagementofaidstonavigation,establishmentandmanagementofaidstonavigationmarkingconstructionzones,reportofestablishmentandmanagementofwreckmarkingsTable2:LawsandpermitsrelevanttothedevelopmentofoffshorewindinSouthKoreaSource:SFOCUpintheAirreport,2023MarketstoWatch71GWECGLOBALOFFSHOREWINDREPORT2023projectsalreadyinthepipelinetomeetthe2030targetof14.1GW(56projects)offixed-bottomand6.7GW(13projects)offloating.ThepermittingprocessforEBLprojectsinvolvesobtainingamaximumof29licencesfromtendifferentministries(seeTable2),resultinginlengthyandcostlyprocedures.Thiscomplexprocessmakesithardertosecurefinancing,generatinguncertaintyforprojectdevelopers.Toovercomethesechallenges,institutionalsupportiscrucialtostreamlinethelicensingprocess.Thegovernmentcanachievethisbyfocusingoncapacity-buildingandawareness-raisinginitiativesforoffshorewinddevelopment.Buildingcapacityforpermittingorganisationsatalllevels,fromcentraltomunicipal,willallowefficientreviewandrejectionofunsuitableprojectswhilefast-trackingviableprojectsinappropriatelocationsforrapiddeployment.3.Reviewandassesssocio-economiceffectsandstakeholderengagementOppositionbyfishermenposesaprimarychallengetoexpandingoffshorewindinSouthKorea,giventhecountry’shighfishconsumptionandlargefishingfleet.Currently,fishermen’soppositionprolongsthepermittingprocess,leadingtoprojectdelays.In2020,allprojectsfailingtogainapprovalfromtheEBLreviewcommitteewereprimarilyduetoinsufficientacceptancelevels.Toovercomethesechallenges,itisessentialtoestablisheffectivecommunicationprotocolsandactivelyengagewithfishermenthroughoutthedevelopmentprocess,topreventconflictsandbuildtrust.Additionally,providingacomprehensiveassessmentofoffshorewind’ssocio-economicimpactcanpromotebetterunderstandingandsocialsustainability.Thesocio-economicbenefitsoftheoffshorewindindustrytocoastalregionsandlocalcommunitiesarenotfullyperceivedandunderstoodbymunicipalgovernmentsinKorea,whichhaveacrucialsayonafewlicencesintheexistingEBLtrack.Effectivecommunicationandengagementbythewindindustrywithmunicipalauthorities,thefishingcommunityandthegeneralpopulationareessentialtobridgethegapsofunderstandingandensurestrongsupportfromall.BuildonmomentumanddevelopreadinessDespitethechallenges,SouthKoreapossessesimmenseoffshorewindpotentialwithahighdegreeofoffshorewindmarketreadinessthatattractsoverseasinvestorsduetosignificantcapacitypotentialandfavourablegeographicaladvantages.Tofullyunlockthispotential,SouthKoreamustaddressthethreekeychallengesthrougheffectivepolicysupport,activelydevelopitsportandinfrastructureandbuildarobustsupplychain.Bydoingso,thecountrycanachieveitsoffshorewindgoalsandplayavitalroleintheglobaltransitiontowardsustainableenergysources.Effectivecommunicationandengagementbythewindindustrywithmunicipalauthorities,thefishingcommunityandthegeneralpopulationareessentialMarketstoWatchGWEC.NET72Followingasuccessfulyearforthewindindustryin2021,whenVietnamhadalmost4GWofonshoreandintertidalwindprojects(779MWintertidal)withCODsintimefortheFiTdeadline,thegovernmentofVietnamdidnotreleaseanyfollow-uppolicyforthewindindustryin2022.Thisresultedinnowindprojectsbeinggridconnectedin2022,eventhoughnearly4GWofonshorewindprojectsalreadyhadPPAsbutmissedtheFiTdeadline.Manyoftheseprojects,whicharecalledtransitionalprojectsbythegovernment,areinconstructionorhavealreadyfinishedinstallation.PowerDevelopmentPlanVIII(PDP8)TheVietnamesegovernmentfinallyapproveditsPDP8inMay2023.Thetargetforonshorewindis21.8GWby2030,whichisveryambitiousyetachievable.Around4GWoftheseprojectsarealreadybuilt,andanother4GWof‘transitionalprojects’areintheprocessofPPAnegotiationwithEVN.Thegovernmentwillneedtoissueanewregulatoryframeworkforthedeveloperstobuildtheremaining13.8GW.Thesenewprojectswillbeputthroughacompetitiveauctionprocessforpricediscovery.Thetargetforoffshorewindis6GWby2030,witharapidincreaseto91GWby2050.Outofthe6GW,3GWaretobedevelopedinthenorthand3GWinthesouth.TheseregionaltargetscouldpotentiallycreatedifferentregionalpoliciessincethewindresourcesinthenortharenotasgoodastheresourcesintheSouth.ThePDP8alsomentionsVietnam’sintentiontobuildoffshorewindprojectsforexport.Theseprojectswillnotbeapartofthe6GWtargetuntil2030.Singaporeisthemostlikelypotentialbuyeroftheelectricityfromtheseprojects.TheambitioustargetforoffshorewindsetinthePDP8reflectsVietnam’scommitmenttoachievenetzeroby2050,underapledgemadebythecountry’sprimeministeratCOP26.Thenextstepforthecountryistohaveanimplementationplanandadetailedregulatoryframeworktoturnthesetargetsintorealprojects.ThewayforwardVietnamlacksaholisticregulatoryVietnamRobustmarinespatialplanningImprovedPPAbankabilitytoattractinternationalfinanceGridplanningandoperationalupgradesforOFWintegrationOthersupportingpoliciessuchassupplychaindevelopmentplanetcSimplerenumerationmechanismwhichisquicktoimplementCleartimelineforimplementationofAuctionClearstreamlinedpermittingprocessCentralised&well-organiseddevelopment/permittingofficewithinthegovernmentEnabling7+GWofOFWInstallationby2030VIETNAMROUTETOMARKETPROCESSMarketstoWatch73GWECGLOBALOFFSHOREWINDREPORT2023frameworkforoffshorewind.Projectstypicallyrequire6–8yearsfromprojectdevelopmenttoconstructionafterallofthepermittinghurdleshavebeencleared.Inordertohavethefirstbatchofprojectsconnectedby2030,thediscussiononpolicyandregulatoryframeworkshastobegintoday.Thekeycomponentsthatareneededare:lAsimpleremunerationmechanismthatisquicktoimplementlAcleartimelineforauctionimplementationlAclearstreamlinedpermittingprocesslArobustmarinespatialplanningregimelImprovedPPAbankabilitytoattractinternationalfinancelGridplanningandoperationalupgradesforoffshorewindintegrationlOthersupportingpoliciessuchasasupplychaindevelopmentplanDevelopinglegalframeworkstosolvetheseissueswilltaketime.Potentially,newlawsareneeded,whichwilltakeatleasttwoorthreeyearstoimplement.ThiscouldresultinVietnammissingits2030target.Therefore,someformoffast-trackmechanismsshouldbeappliedforthefirstprojectstokickstartthenecessarydevelopmentworkassoonaspossible.Thegovernmenthassignalleditsintentiontolaunchapilotschemetoallowdeveloperstostartprojectssooner,butitisunclearhowitwillbedone.Overall,theindustryissupportiveofafast-trackpilotscheme.VietnamandtheInternationalPartnersGroup(IPG)havesignedaJustEnergyTransitionPartnership(JETP)tocommit$15.5billiontosupportVietnam’senergytransition.Offshorewindisoneofthekeyfocusareasofthisprogramme.AJETPsecretariatestablishedinJuly2023andledbytheMinistryofNaturalResourcesandtheEnvironment(MONRE)gathersmembersfrommultipleministriesandgovernmentdepartments.Aresourcemobilisationplanisexpectedin2023.InternationalcommunitiesaresupportingVietnaminthisprocess,withorganisationsliketheVietnamEnergyPartnershipGroup(ofwhichGWECisamember)workingwiththegovernmenttoformpoliciesthatcanattractinvestmentintooffshorewind.Gridinfrastructureisacriticalchallengeinamarketwherethesignificantupgradesarerequiredforthecurrentgridtoaccommodatenewoffshorewindprojects.AccordingtothePDP8,Vietnamneedsapproximately$3billionofinvestmentintothegridannuallyuntil2030.Inaddition,capacitybuildingisneededforthegovernmenttobettermanageagridwithhighpenetrationofrenewableenergy.Thegovernmentisreluctanttobuildlongtransmissionlinesandinsteadencouragesbuildingenergyprojectsclosertodemandcentres,whichcouldleadtohigherelectricitypricessincerenewableenergyresourcesarenormallyinremoteareas.Globallyandintheregion,theoffshorewindsupplychainishighlyconstrainedastheresultofincreasingdemandandhighpricesforkeycomponents.Withanestablishedoilandgasindustrythatcanquicklybetransitionedtooffshorewind,Vietnamisinapositiontoattractinvestmentandenjoyfirst-moveradvantagetogainpriorityaccesstothesupplychain,lowerpricesandeventuallybecomeasupplychainhubforoffshorewindintheregion,ifitcandeploysupportingpolicyintimetokeepupthemomentum.Failuretodothiswillturninvestorsandsuppliersawayfromthemarketandcouldleadtomoreexpensiveprices,andevenpowershortages,inthefuture.GWEC.NET74Globally,Indiaranksthirdintotalenergyconsumptionandfourthinwindandrenewableenergyinstalledcapacity.41Thecountryhadinstalled43.2GWonshorewindandnooffshorewindcapacityasofMay2023.42India’sshareofglobalprimaryenergyconsumptionislikelytoincreasetoabout9.8%by2050understatedpoliciesfromthecurrentshareof6.1%.43Tomeetgrowingdemand,IndiahascommittedatCOP26toinstall30GWoffshorewindandatotal500GWofnon-fossilfuelpowerby2030.First5GWseabedleasingtenderOffshorewindcouldbeapivotalsourceforIndia’sround-the-clock(RTC)cleanpowerrequirementsandsocioeconomicgrowth.Astheshareofcleanenergyinthegridincreases,gridbalancingandresiliencebecomeevenmoreimportant.OffshorewindisperceivedtobeavailableformoremonthsthanonshorewindatmanysitesandhenceitisoftenconsideredacommerciallyattractiveoptionforRTCpower.India’scentralgovernmentandthestategovernmentsofGujaratandTamilNaduarekeentoharnesstheoffshorewindpotential.InApril2023,theMinistryofNewandRenewableEnergy(MNRE)andNationalInstituteofWindEnergy(NIWE)sharedarevisedstrategypaperanddraftRequestforSelection(RfS)tenderdocumentswithstakeholders:Arevisedstrategypaperforthe‘EstablishmentofOffshoreWindEnergyProjects’providesanauctiontrajectoryfor2023–2030(seeFigurebelow).Itidentifiesoffshorewindzonestotalling37GWincapacityalongtheTamilNaduandGujaratcoaststobeauctionedthroughfourproposedmodels:Model1:1GWforZoneB3inGujaratModel2:2GWwithviabilitygapfunding(VGF)foroffshorewindsitesidentifiedbyNIWEforwhichdetailedstudies/surveyshavenotbeenconductedModel3:12GWforsitesidentifiedandnotifiedbyNIWEandwithoutVGFIndiaPlannedBidTrajectory(GW)20232024202537555556630702026202720282029TotalBidCapacityby20302030OffshoreWindInstallationTargetOffshoreWindTechnicalPotentialinGujaratandTamilNadu(NIWE)RevisedOffshorewindplannedbidtrajectoryvsinstallationtargetvsearmarkedpotential,June202341.https://pib.gov.in/PressReleasePage.aspx?PRID=188514742.https://cea.nic.in/wp-content/uploads/installed/2023/05/IC_May_2023.pdf43.https://pib.gov.in/PressReleasePage.aspx?PRID=1809204MarketstoWatch75GWECGLOBALOFFSHOREWINDREPORT2023Model4:22GWforanyoffshorewindsiteswithintheExclusiveEconomicZoneexcludingthesitesconsideredunderModels1,2and3.AdraftRfStenderdocumentforthe‘allocationofseabedleaserightsforoffshorewindpowerprojects’forzoneBofftheTamilNaducoast,publishedinNovember2022andrevisedinApril2023.GWECpresentedindustryfeedbackongridevacuationinfrastructure,inclusionofde-riskingmeasuresandincentives.Followingconsultationwithindustry,stategovernmentsandotherkeystakeholdersonthereviseddraftRfS,thefinalRfStenderisexpectedlaterthisyear.Althoughtherevisedstrategypapercallsforauctionsawarding37GWofcapacityby2030,itisnotyetclearhowmuchofthecapacityallocatedthroughbidswouldbeinstalledbythatdateandagainstthetargetof30GWbytheendofthisdecade.Theprogressmadeonvariousaspectsaheadofthefinaltenderreleaseisremarkable.lPolicyincentives:A25-yearwaiveroninter-statetransmissionsystem(ISTS)chargeswouldbegrantedforoffshorewindprojectscommissionedbeforetheendof2032,withgradedtransmissionchargesapplicablethereafterforprojectscommissionedbetween2033and2037.44NoadditionalsurchargewouldbepaidforoffshorewindprojectscommissionedbyDecember2032andsupplyinggeneratedpowertoOpenAccessConsumers.lMaritimespatialplanningandportstudiesforthestatesofGujaratandTamilNaduwerepublishedinNovember2022,undertheCentreofExcellenceforOffshoreWindandRenewableFollowingconsultationwithindustry,stategovernmentsandotherkeystakeholdersonthereviseddraftRfS,thefinalRfStenderisexpectedlaterthisyear.44.MinistryofPowernotificationMarketstoWatchGWEC.NET76Energy,jointlysetupbytheDanishEnergyAgencyandtheMNRE.Itshowedthefavourableoffshorewindzoneswhichcanbeprioritisedforthebidding.RapidEIAstudiesforportsinTamilNaduarebeingdiscussed.lLogistics:Underits‘ShipbuildingFinancialAssistancePolicy’,thegovernmentwilloffersubsidiestobuildspecialisedoffshorewindvesselsinIndia.TheMinistryofPorts,ShippingandWaterwayshasincludedinthelistof‘specialisedvessels’windturbineinstallationvessels(WTIVs);self-propelledsemi-submersibleheavyliftandheavytransportvessels;windfarmserviceandmaintenancevesselsandcablelayingvessels.lVGF:InDecember2022,thecentralgovernmentnotifiedthataconceptnotefortheVGFschemeofRs14,283crore($1.74billion)fortheinitial3GWofoffshorewindenergyprojectsbesentfor‘in-principle’approvaltotheDepartmentofExpenditure,MinistryofFinance.Further,thestatesofGujaratandTamilNaduhaveagreedtoofftakethefirstfewGWsofoffshorewindcapacityatatariffofINR4/unit.lSupplychain:ItislikelythatforthefirstfewGWsofprojects,offshorewindturbinegeneratorswillhavetobeimported.Giventhescaleoftheauctionpipelineupto2030,thereisanurgentneedtocreateadomesticsupplychaininordertograduallyreduceLCOE.AstudyfundedbyUKRIIndiaandlaunchedinMarch2023willassessthecapabilityofIndia’soffshorewindsupplychain.InJuly2023,GWECcommissionedworktoexplorepotentialopportunitiesinoffshorewindmanufacturinginTamilNadu.lPowerevacuation:Thereisaplaninplaceforlayinga10GW(5GWeachinGujaratandTamilNadu)ISTSgridinfrastructureforoffshorewindpowerevacuationbyDecember2030.45lCoordinationbetweencentralandstateauthorities:RegulardialoguebetweenauthoritiesandagenciesatcentralandstatelevelistobefacilitatedandcoordinatedbytheMNREtoaccelerateprogressonoffshorewind.Thisisalsovitalfortimelypermits,clearancesandpositiveengagementwiththefishingcommunity.De-risktheprocesstoaccelerateoffshorewinddeploymentWhiletheprogressivestepsdescribedabovesetafirmfoundationtostartthebiddingprocess,itisimportanttoadoptmeasuresthatde-risktheentireprocessinordertoachieveoffshorewindtargets.InMarch2023,awhitepapertitled‘Anoceanofpotential:RecommendationsforoffshorewinddevelopmentinIndia’,publishedbyGWECIndiaandtheUKgovernment,emphasisedContractsforDifferenceasausefulinstrumenttomitigateinvestorrisk.Thewhitepaperoutlinedbestpracticesandadvocatedseizingoffshorewind-ledopportunitiesinIndia.46InMay2023,aspartofthethirdmeetingoftheG20EnergyTransitionWorkingGroup,theMNRE,withsupportfromGWECandNIWE,convenedasideeventonhowtoharnessoffshorewindtoacceleratetheenergytransition.FinancingandCapacityBuildingforoffshorewindwasdeliberated.47Forasuccessfulventureintooffshorewind,investmentplanningforportreadinessandanupgradeofgridinfrastructureareessentialfordrivingtheinterestofoffshorewindstakeholdersintheIndianmarket,alongsideeffectiveimplementationofasingle-windowclearancesystemforprojects,offshorewindtailoredstandardsandguidelines,attractivefinancialincentivesandsupportforpowerofftake.45.https://cea.nic.in/wp-content/uploads/notification/2022/12/CEA_Tx_Plan_for_500GW_Non_fossil_capacity_by_2030.pdf46.https://gwec.net/an-ocean-of-potential-white-paper-download/47.G20sideevent-HarnessingOffshoreWindforAcceleratingEnergyTransition-GlobalWindEnergyCouncilMarketstoWatch77GWECGLOBALOFFSHOREWINDREPORT2023LastyearsawsignificantstridesinNorthAmericanoffshorewindwithadvancementsandincentivesintroducedatfederalandstatelevelintheUS,alongwithCanadaannouncingitsfirstoffshorewindtargetandauction.Autumn2022sawtheCanadianProvinceofNovaScotiasetatargettoauctionoff5GWofoffshorewindenergyby2030.Thisisthefirstmovetowardsplannedoffshorewinddevelopmentinacountrythathasseensignificantactivityinthemarineenergysector(tidalandwaveenergy)overthepastseveralyears,aswellasanoffshorewindmoratoriumthatledtolegalactionsfromaffecteddevelopers.Atthesametime,theUSisonthevergeofrapidexpansionforoffshorewind.Aleapingovernmentalsupportandinvestment,alongwithambitiousplansfornationwideleases,meanstheindustryisgettingreadytounleashitstruepotential.However,toreachitspromiseof30GWby2030andleadtheenergytransition,theoffshorecommunitymustgathertoovercomethecostcrisis,politicalinstability,transmissionandpermittinglimitationstodeployprojectsatscale.TheUSInflationReductionAct(IRA),whichcameintoeffectinAugust2022,isaimedatalleviatingsomeoftheseconcernsbysuperchargingdomesticenergyinvestmentandproduction,andultimatelychangingthepathforcleanenergyintheUS.AlongsidetheDepartmentofInterior’s(DOI)$300millioninvestment,theactmarkedaleapinpoliticalsupportforoffshorewindandaturningpointfortheUnitedStates’sjourneytomeetingtheBidenadministration’sgoalof30GWby2030.However,toreachitspromiseof30GWby2030andleadtheenergytransition,theoffshorecommunitymustgathertoovercomethecostcrisis,politicalinstability,transmissionandpermittinglimitationstodeployprojectsatscale.NorthAmericaMarketstoWatchGWEC.NET78Whilstonly42MWofinstalledwindcapacityinoperation,theUSboostsoneofthemostambitiousprojectpipelinesatover50GWwith32leasesinactivedevelopment.Mostofthiscapacityisinearlydevelopmentbutmorethan15GWisinadvanceddevelopment.NewYorkStatehasthelargestcapacity–almost4GW–inthepipeline.The132MWSouthForkprojectiscurrentlyunderconstruction.TheBureauofOceanEnergyManagement(BOEM)convenedtwolargeleaseauctionsin2022,oneontheEastCoastandthefirstontheWestCoastgeneratingnearly$5.4billioninfederalrevenuefromwinningbids.IntheNewYorkBight,BOEM’sauctionofsixleaseslastedthreedays,drawingwinningbidstotallingnearly$4.4billion.Furthersouth,anauctionfortwoleasesinCarolinaLongBaygenerated$315million.Finally,amuch-anticipatedsaleoffiveleasesoffthecoastofcentralandnorthernCaliforniadrewwinningbidstotalling$757million.Salepricesrangedfromalowof$6,147/acretoasmuchas$9,933/acre,averaging$8,313/acreacrosssixleases.HighleasepricesintheNewYorkBightcanbeexplainedbyincreaseddemandforoffshorewindfromtwonearbystates,NewYorkandNewJersey,andwell-definedoffshorewindgoalsandprocurementschedules.TheleaseauctionsinCarolinaLongBayandCaliforniasawlowerprices:$2,657/acreonaverageintheformerandjust$1,910/acreoffCalifornia.In2018,theauctionofthreeleasesoffthecoastsofMassachusettsandRhodeIslandyieldedleasepricesrangingfrom$1,021/acreto$1,060/acre.Federalinitiatives-InflationReductionActTheUStookasignificantstepforwardinsupportingtheenergytransitionwiththepassageoftheIRAlastyear.Thiscomprehensivelegislationaimstomakecleanenergymoreaffordableandattractive,italsoincludesarangeofmeasurestoachievethisgoal.Thepackageprovidestaxincentives,grantsandloansthatprioritiseUSmanufacturingandcleanjobcreation.OneofthemajorhighlightsoftheIRAisitsimpactontheUSoffshorewindindustry.Recognisingtheneedforarobustdomesticsupplychain,thebillallocates$386billioninfundingtoreducegreenhousegasemissionsandinvestincleanenergy.Thisinvestmentiscrucial,astheUScurrentlylacksthenecessaryinfrastructuretomeetitsfederaloffshorewindtargetof30GWby2030.Additionally,theglobalsupplychainforoffshorewindcomponentsandconstructionisexpectedtofaceconstraints.Toaddressthesechallenges,theIRAincludesseveraltaxcreditsspecificallyaimedatoffshorewindmanufacturingandinfrastructure.ThesecreditspromotethedevelopmentofoffshorewindfacilitieswithintheUS.Theyencompass$100millionforoffshorewindtransmissionplanning,anewadvancedmanufacturingtaxcreditforoffshorewindcomponents,andanextensionoftheinvestmenttaxcreditforvesselconstructionandoffshorewindmanufacturingfacilitiesthatproduceessentialcomponentslikeblades,nacelles,towersandfoundations.Inadditiontosupportingdomesticmanufacturing,theIRAopensupnewareasforoffshorewinddevelopmentinthecountry.ItliftsthepreviousbanonoffshorewindprojectsintheSouthernAtlanticandUSAMarketstoWatch79GWECGLOBALOFFSHOREWINDREPORT2023EasternGulfofMexico,allowingfortheirdevelopment.Furthermore,thebillenablesthedevelopmentofoffshorewindoffUSterritories.TheIRAnotonlyfocusesonfinancialincentivesandexpandingdevelopmentareasbutalsoaimstostreamlinetheplanning,permittingandexecutionofoffshorewindprojects.ItprovidesincreasedfundingforstaffingattheBOEMandtheNationalOceanicandAtmosphericAdministration(NOAA).Furthermore,thebillincludesanagreementtopasscomprehensivepermittingreformlegislation,whichwillexpeditetheapprovalprocessformajoroffshorewindprojects.Additionally,itstipulatesthatanoffshorewindleasecanonlybefinalisedifanoffshoreoilandgasleasingsalehasoccurredinthepreviousyear.Overall,theIRAplaysavitalroleinestablishingthenecessaryfoundationsfortherealisationofoffshorewindenergyintheUS.Bysupportingdomesticmanufacturing,expandingdevelopmentareasandstreamliningprojectexecution,thislandmarklegislationdemonstratesthecountry’scommitmenttocleanenergyandsetsthestageforsignificantprogressintheoffshorewindsector.PlanningandpermittingreformAswehaveseenacrossmarketslookingtorampupoffshorewinddeployment,slowpermittingstillremainsahugechallengeintheUS,forrenewableprojectsandalsoforgridinfrastructure.AttemptsbySenatorJoeManchintochangethewaybiginfrastructureprojectsthatinvolvefederalfundsareapprovedbyenactingpermittingreformlegislationalongsidetheIRAwasrejected.ItwasapersonallossforManchinbutapotentiallybiggeroneforakeyDemocraticpriority:buildingoutacleanenergyinfrastructure,andfast.Whilsttheoutlookfordoingsoisnowbleaker,thereremainhopesofcross-partyconsensusonsomesortofpermittingreformatafederallevel,althoughitwouldlikelybenefitapprovalsforgasinfrastructureaswellasanycleanenergyprojects.ThedefeatoffederalpermittingreformtakesplaceintheshadowofthepassageoftheIRA,perhapsCongress’ssignatureachievement.Butasitstands,theIRAwillbehard-pressedtoaccomplishitsstatedgoals,primarilyduetothe50-year-oldlawNationalEnvironmentalPolicyAct(NEPA).NEPAmandatesthatallfederalagenciesconsiderenvironmentalfactorsintheirdecision-makingandinvolvethecommunitieswhereprojectsaretakingplace.TheactcoversnotonlypublicinfrastructurebutextendstoTheIRAplaysavitalroleinestablishingthenecessaryfoundationsfortherealisationofoffshorewindenergyintheUSMarketstoWatchGWEC.NET80anyprojectthatrequiresapermitfromthefederalgovernmentorreceivesfederalfunding.DespitethevaluableroleplayedbyNEPAovertheyears,thereisnowaconflictbetweenitsobjectivesandtheneedtodevelopcleanenergyinfrastructure.Giventheurgencyoftheclimatecrisis,adiversecoalitionspanningthepoliticalspectrumisraisingconcernsaboutthenecessityofreformingthelaw.Foroffshorewind,theDOIandBOEMhaveannouncedreformstostreamlineprocessesthatdeveloperswillhavetonavigate.However,consideringthatoffshoredevelopmentintheUSisstillinitsearlystages,onlytimewillrevealtheeffectivenessoftheoverallprocessinvolvingBOEMandstate-levelauthorities.GridaccessandInvestmentIntheUS,theresponsibilityfornetworkinvestmentliesprimarilyatthestatelevel.However,therearefederalmechanismsinplacetosupportnationalinfrastructureneeds.Forinstance,theIRAincludesfundingprovisionstoassistwithtransmissionprojects–$2billioninloanfunds,coveringupto80%oftheconstructioncostsfortransmissionlines,and$760millioningrantstofacilitatethesitingoftransmissionlinesorpromoteeconomicdevelopmentincommunitieswheresuchlinesareplanned.Despitepastinstancesofincreasedfederalfunding,itisimportanttonotethatgridissues,oftenstemmingfromcoordinationandplanningchallengesbetweenRegionalTransmissionOrganizations(RTOs)andIndependentSystemOperators(ISOs),havenotbeenfullyresolved.TofullyleveragethebenefitsoftheIRA,ithasbeenestimatedthatthereneedstobeadoublinginelectricitytransmissioninfrastructureacrossthecountry.However,inthelastdecade,moreprojectshavebeencancelledthancompleted,highlightingthecomplexitiesinvolvedintheprocess.TofullyleveragethebenefitsoftheIRA,ithasbeenestimatedthatthereneedstobeadoublinginelectricitytransmissioninfrastructureacrossthecountryMarketstoWatch81GWECGLOBALOFFSHOREWINDREPORT2023BOEMleasesInOctober2021,theSecretaryoftheDepartmentoftheInterior,DebHaaland,announcedBOEM’soffshorewindleasing‘PathForward2021–2025’,whichpavedthewayfortheoffshorewindleaseauctionheldintheNYBightinFebruary2022.Followingthat,theagencyheldanauctionintheCarolinaLongBayregioninMay2022andfinishedtheyearwithaleaseauctionfortwoareasoffCaliforniainDecember2022.StateActivityNewYorkBightBOEMconductedanoffshorewindleasesaleon23February2022,aspartofitsPathForwardinitiative.ThisleasesalefocusedonsixareassituatedintheNewYorkBight,whichreferstotheoceanicareabetweenNewYorkandNewJersey.Theauctiontookplaceoverthreedaysand64rounds,concludingon25February2022.Remarkably,theauctionattractedconsiderableattention,resultinginwinningbidsfromsixcompaniesthatamountedtoapproximately$4.37billion.Thisleaseauctionnotonlysetanewrecordforoffshorewindbutalsounderscoredthepromisingopportunitiesavailabletodevelopersintheregion.BothNewYorkandNewJerseyhavesetambitiousoffshorewindgoalsandhaveestablisheddetailedprocurementschedulestodrivetheindustry’sgrowth.(NoteforDesigner:Imagetakenfrom:https://www.boem.gov/sites/default/files/images/NY_and_sunrise.png)BluepointWind-OCS-A0537,a71,522-acrelease,wasawardedtoOWOceanWindsEast,LLC,apartnershipbetweenOceanWinds(itselfajointventureofEDPRenewablesandENGIE)andGlobalInfrastructurePartners,forthewinningbidof$765million.TheprojectisnowknownasBluepointWind.AttentiveEnergy-OCS-A0538,an84,332-acrelease,wasawardedtoAttentiveEnergyLLCforthewinningbidof$795million.AttentiveEnergyLLCwasjointlyownedbyTotalEnergiesandEnBW.Dayslater,EnBWannounceditsdecisiontoexittheUSoffshorewindmarket.Thecompany’sUSassetswereacquiredbyTotalEnergiesinMarch2022.CommunityOffshoreWind-OCS-A0539,thelargestleaseintheauctionat125,964acres,wasawardedtoBightWindHoldings,LLCforthewinningbidof$1.1billion.BightWindHoldings,LLCisajointventurebetweenRWEandNationalGrid.TheprojectisnowknownasCommunityOffshoreWind.Assuch,thenameBightWindHoldings,LLCwaschangedtoCommunityOffshoreWind,LLCafterleaseissuance.AtlanticShoresOffshoreWindBight-OCS-A0541,a79,351-acrelease,wasawardedtoAtlanticShoresOffshoreWindBight,LLCasubsidiaryofAtlanticShoresOffshoreWind(itselfajointventurebetweenShellandEDF)forthewinningbidof$780million.InvenergyWindOffshore-OCS-A0542,an83,976-acrelease,wasawardedtoInvenergyWindOffshore,LLCforthewinningbidof$645million.InvenergyWindOffshore,LLCissponsoredbyInvenergyandEnergyRE.BlackstoneInfrastructurePartners,CDPQ,FirstLightPower,andUllicoInfrastructureFundwillalsoprovidefundingfortheproject.TheprojectisnowknownasLeadingLightWind.Mid-AtlanticOffshoreWind-OCS-A0544,thesmallestleaseatjust43,056acres,wasawardedtoMid-AtlanticOffshoreWindLLC,forthebidof$285million.ThenameMarketstoWatchGWEC.NET82Mid-AtlanticOffshoreWindLLCwaschangedtoVineyardMid-AtlanticLLCafterleaseissuance.VineyardMid-AtlanticLLCisownedbyCopenhagenInfrastructurePartners.CarolinaLongBayleasesaleInitssecondleasesaleoftheyear,BOEMheldanoffshorewindauctionfortwoleaseareasintheCarolinaLongBayon11May2022.The18-roundauctionlastedonedayandresultedinwinningbidstotalling$315million.Combined,theleasestotal110,091acres.LeaseOCS-A0545,inthewesternpartoftheCarolinaLongBayleasearea,wasawardedtoTotalEnergiesRenewablesUSA,LLCforthefinalbidof$160million.TotalEnergiesRenewablesUSA,LLCiswhollyownedbyTotalEnergies.Thisleaserepresentsatotalof54,937acres.LeaseOCS-A0546,totheeast,wasawardedtoDukeEnergyRenewablesWind,LLCforafinalbidof$155million.DukeEnergyRenewablesWindLLCiswhollyownedbyDukeEnergy.Thisleaserepresentsatotalof55,154acres.CalifornialeasesaleInitsthirdandfinalleasesaleoftheyear,BOEMheldanoffshorewindauctionforfiveleaseareasoffCaliforniaon6December2022.TheauctionincludedtwoleasesoffthecoastofnorthernCalifornia,nearHumboldtBay,andthreeleasesofftheCentralCoast,nearMorroBay.Theauctionlastedtwodaysandresultedinwinningbidstotalling$757million.Theleasestotal373,268acres.Deepwatersintheseleaseareasnecessitatetheuseoffloatingoffshorewindtechnology.OCS-P0561,a63,338-acreleaseoffHumboldt,wasawardedtoRWEOffshoreWindHolding,LLCforafinalbidof$157.7million.RWEOffshoreWindHolding,LLCiswhollyownedbyRWE.OCS-P0562,a69,031-acreleasealsooffHumboldt,wasawardedtoCaliforniaNorthFloatingLLCforafinalbidof$173.8million.CaliforniaNorthFloatingLLCiswhollyownedbyCopenhagenInfrastructurePartners.OCS-P0563,an80,062-acreleaseoffMorroBaywasawardedtoEquinorWindUSLLCforafinalbidof$130million.EquinorWindUSLLCiswhollyownedbyEquinor.OCS-P0564,an80,418-acreleaseoffMorroBaywasawardedtoCentralCaliforniaOffshoreWindLLCforafinalbidof$150.3million.CentralCaliforniaOffshoreWindLLCisownedbyajointventureofOceanWinds(itselfajointventurebetweenEDPRenewablesandENGIE)andtheCanadianPensionPlanInvestmentBoard.OCS-P0565,an80,418-acreleaseoffMorroBaywasawardedtoInvenergyCaliforniaOffshoreLLCforafinalbidof$145.3million.InvenergyCaliforniaOffshoreLLCiswhollyownedbyInvenergy.BOEMintendstoconductleaseauctionsintheGulfofMexico(2023),CentralAtlantic(2023),Oregon(2023)andtheGulfofMaine(2024)aspartofthePathForwardinitiative.However,thesedatescouldchangeduetopossibledelays.BOEMintendstoconductleaseauctionsintheGulfofMexico(2023),CentralAtlantic(2023),Oregon(2023)andtheGulfofMaine(2024)aspartofthePathForwardinitiative.MarketstoWatch83GWECGLOBALOFFSHOREWINDREPORT2023Canadahasamassiveoffshorewindtechnicalpotentialofaround9.3TW.48Canada’spowergridbenefitsfromsignificantamountsofcleanelectricity–primarilyhydropower–whileoilandnaturalgasenergysourcesdominatethetotalenergysupplymix.Inthemediumtolongterm,harnessingthehugewealthofoffshorewindenergyofferssignificantopportunitiesforthecountrytonotonlyachieveitsowntargetofnetzeroelectricitygridby2035andanetzeroemissionseconomyby2050butcanalsosupportneighbouringcountriesintheircleanenergygoalsthroughelectricityexports.AsperanNREL2021study,Canadawouldneed150GWofwindpowercapacityfornetzero,againstacurrenttotalof15.26GWinstalledonshorewindandzerooffshore.49CleanelectricityexportandhydrogenhubOffshorewindprojectscouldpotentiallystretchalongCanada’sAtlanticandPacificCoastsaswellastheGreatLakes,sinceCanadahasthelongestcoastlineintheworld.50Mostsitesaresuitableforfloatingoffshorewind,withtheprovinceofNovaScotiaenjoyingtheworld’smostcompetitiveoffshorewindresourceof10.3m/sat100mwaterdepth.OtherpotentialareasareNewfoundlandandLabrador,NewBrunswick,theGulfofSaintLawrence,andoffshoreBritishColumbiainwesternCanada.NovaScotiahasmadestridestokickstartoffshorewindandagreenhydrogenindustry.In2022,itannounceditwouldoffer5GWofoffshorewindseabedleasesthroughacompetitivebiddingprocessbetween2025and2030tosupportgreenhydrogenproduction.Offshorewindbidswillbebasedonmarketopportunitiesafter2030.ThedraftNovaScotiaoffshorewindroadmapmodule152,releasedinMay2023,plansa‘requestforinformation’foroffshorewindprojectdevelopersin2023followedbya‘requestforproposals’forseabedleasesin2024.Version2oftheroadmapwilladdresssupplychaindevelopmentandversion3willaddresstheconcernsofindigenouscommunities,thefishingindustryandotherinterestedpartiesareexpectedin2024and2025,respectively.Aswellashavingawealthofexperienceintheoilandgasindustry,NovaScotiahasoffshorewindresourcesthatareidealforfloatingandfixedwind.Italsoenjoysinternationalshippinginfrastructureacrossitscoastlinewithanexperiencedandcompetitivemarineserviceandsupplychain,researchexpertiseincleantechnologyandlabouravailability.Forallthesereasons,NovaScotiaisOffshorewindprojectscouldpotentiallystretchalongCanada’sAtlanticandPacificCoastsaswellastheGreatLakes,sinceCanadahasthelongestcoastlineintheworldCanada48.https://gwec.net/wp-content/uploads/2021/06/Canada_Offshore-Wind-Technical-Potential_GWEC-OREAC.pdf49.https://renewablesassociation.ca/statement-naris/50.https://www150.statcan.gc.ca/n1/pub/11-402-x/2012000/chap/geo/geo-eng.htm51.Areportsayithaschangedto2024insteadoforiginalplanstartingfrom2025.52.https://docs.google.com/document/d/1Vk98J1xiF418DnttE8DOcfR7AdBvEfe7rnOypZJhHy8/editMarketstoWatchGWEC.NET84asought-afterlocationforlarge-scalegreenhydrogenproductionandexport.Itaimstoreleaseagreenhydrogenactionplanin2023.InNewfoundlandandLabrador,theCanadiangovernmentawardedfundingin2021toaprojectusingfloatingwindturbinestopoweroilandgasassets,withtheaimofreducingtheircarbonfootprint.Forinformedoffshorewindplanninganddecision-making,thegovernmentsofCanada,NewfoundlandandLabradorandNovaScotiahavenowinitiatedtheRegionalAssessmentofOffshoreWindDevelopmenttoassessfutureimpacts.54TheMinisterofNaturalResources’BillC-49overAtlanticAccordsActs55hasbeenintroducedintheHouseofCommonstocreatearegulatoryframeworkforoffshorewind,hydrogenandgreenammoniadevelopmentinAtlanticCanada.Underthisbill,theOffshorePetroleumBoardforNovaScotiaandNewfoundlandandLabradorwouldadditionallyactastheregulatorybodyforoffshorewind.Toprioritiseoffshorewindandgreenhydrogenproductioncommercially,CanadaintroducedasuiteofinvestmenttaxcreditsinitsMarch2023budget56,tooffsettheUSIRAandsimilarlycompetitiveEuropeansupportmechanisms.ThebudgetincludesinvestmentsmadebyCanadaInfrastructureBankandCanadaGrowthFund.AtlanticInvestmentTaxCreditisanotheradditiontosupportnewenergygeneration.TheseareimportantandpromisingfirststepstokickstartCanada’soffshorewindindustry.However,anincreasinglycompetitiveglobalenvironmentforprivateinvestmentmeansthatthefederalandprovincialgovernmentswillhavetostepupandaccelerateeffortstosupportthesectorandthelocalsupplychain.Thisincludesidentifyingpotentialsitesthroughoffshorewindresourcemeasurements,settinganationaloffshorewindtargetthatincludescommitmentsfromallpotentialprovinces,followedbyoffshorewindauctions/seabedleasespipelines.Additionally,itwillbenecessarytocreatepermitting,policyandregulatoryframeworks,analysegridandportinfrastructurereadiness,introduceincentivestograduallyreducethehighercostofoffshorewind,andfinallypromotecoordinationandcollaborationbetweenprovinces,thefishingsectorandoffshorewindindustryplayers.53.https://www.offshorewind.biz/2021/05/11/canada-backs-project-powering-oil-gas-assets-with-floating-wind/54.https://www.google.com/url?q=https://iaac-aeic.gc.ca/050/evaluations/proj/84343?%26culture%3Den-CA&sa=D&source=docs&ust=1692606734829477&usg=AOvVaw1SdouXxR96AHOtxRYNyHub55.ItregulatesAtlanticAccordsActsimplementagreementsbetweenCanadaandtherespectiveprovincesonthejointmanagementofoffshorepetroleumresources56.https://www.budget.canada.ca/2023/report-rapport/chap3-en.htmlMarketstoWatch85GWECGLOBALOFFSHOREWINDREPORT2023Offshorewind:astrategicele-mentinindustrialpolicyClimateemergency,energytransition,lowcarbon,renewableenergy–today,itispracticallyimpossibletotalkaboutthecompetitivenessofanyworldeconomywithouttheseconceptsbeingatthecentreofdiscussions.Theglobalengagementinfavourofdecarbonisationisundeniable.MotivatedbytheParisAgreement,128countriesrepresenting88%ofglobalgreenhousegasemissionsandaccountingfor92%ofglobalGDPhaveadopteddecarbonisationpolicies.Manycountriesareputtingtogetherpost-COVID-19pandemiceconomicrecoverypackagesthatfullyembracegreenindustrialpolicies.Itisinthiscontextthatoffshorewindexcelsonlyasatoolfordecarbonisingtheeconomybutalsoasastrategicpartofagreenindustrialpolicyandadriverofeconomicandsocialdevelopment.Accordingtothe‘RoadmapEólicaOffshoreBrasil’,publishedbyEmpresadePesquisaEnergética,Brazilhasahugeoffshorewindpotentialofapproximately700GWonsiteswithadepthofupto50metres.Brazilhasanurgentneedtodesignalegalframeworkforthesectorand,asafirststep,itneedstodefinetherulesfortherighttousetheseasothatitcanturnthisvastpotentialintoreality.Brazilhasmadesomeprogresswithdifferentaspectsoftheregulatorydebateandthevaluechain.Arecentstudyonthevaluechaininoffshorewind,57sponsoredbyABEEólicaandwiththetechnicalcoordinationofPetrobras’energytransitiondirector,MaurícioTolmasquim,outlinesthemainpathwaysforthedevelopmentoftheoffshorewindenergyvaluechain.RegulatoryadvancesandimportantmilestonesTheregulationofoffshorewindinBrazilhasbeenaddressedontwofronts,withthemainobjectiveofprovidingtransparencyandlegalcertaintytoinvestors:Decree10,946/2022andPL576/2021issuedin2022.ForDecreeNo.10,946,theMinistryofMinesandEnergy(MME)openedtwopublicconsultations(CP134/22and135/22)onthedraftoftheordinance.OrdinancesNormative52º/2022MMEandInterministerialnº3/2022MME/MMdealwithguidelinesandcomplementaryrulesforassigningsitesandnaturalresourcesinoffshoreareastogenerateelectricity,andtocreateaportalforthemanagementofoffshoreareas.Currently,investorsinterestedinexploringoffshorewindenergyseektheirguidancethroughDecree10,946,whichdealswiththeproceduresforgrantingcontractsforallocatingtheuseofoffshoreareas.PL576/2021,byformersenatorandcurrentPetrobrasCEO,Jean-PaulPrateshasbeenapprovedbytheInfrastructureCommissionoftheLatinAmerica-BrazilBrazilhasanurgentneedtodesignalegalframeworkforthesectorand,asafirststep,itneedstodefinetherulesfortherighttousethesea57.https://abeeolica.org.br/wp-content/uploads/2023/02/Executive-Summary.pdfMarketstoWatchGWEC.NET86FederalSenateandiscurrentlygoingthroughtheChamberofDeputies.PL576/21regulatesalltypesofenergyexplorationintheocean,lagoons,lakesandotherbodiesofwater.Theproposalisthatthefederalgovernmentgranttherighttousetheseareas(whenthereiscompetition)orauthorizeitbygrant(whenthereisnocompetition).Bothlegislativeinstrumentsareneededtostreamlineandstructureregulationinthenationalcontext.Foroffshorewindprojectsandtheordinancestomoveforward,thegovernmentneedstobealignedwiththeplanningbodies.Theoffshorewindindustrymustbeseeninastrategiccontext,withtherightregulatoryandinstitutionalenvironmentenablingthecreationofaleasingauctionforoffshorewindenergytounlockthepotentialofthesector.ItisexpectedthattheoffshorewindlegislationwillbepublishedbyNovember.NextstepsforoffshorewindWhenweenvisionthefutureofoffshorewindinBrazil,therearetwoguidingpillars:oneisoffshorewindasanacceleratorofeconomicandsocialdevelopment,throughnewindustrialpolicies;thesecondisitsconnectionwithgreenhydrogenandpower-to-X,asoffshorewindcouldplayacentralroleinmeetingthedemandforhydrogen,consideringitsintenseuseofwaterandabilitytoenableexports.BrazilianinstitutionssuchasAneel,whichincludedoffshorewindforthefirsttimeinits‘RegulatoryAgendafortheBiennium’–adocumentthatlists15strategictopicstobeaddressed–areshowingsignsofawillingnesstoactonoffshorewindregulation.MarketstoWatch87GWECGLOBALOFFSHOREWINDREPORT2023No.ProjectNameCapacity(MW)LocationDeveloperEstimatedFinishingDate1OWFAstrolabio825Uribia,LaGuajiraOWFAstrolabioSASESP2032/08/022OWFBarlovento825Uribia,LaGuajiraOWFBarloventoSASESP2032/08/023OWFBergantín825SantaMarta,MagdalenaOWFBergantínSASESP2032/08/064OWFGaleón825Barranquilla,AtlánticoOWFGaleónSASESP2032/08/065GoletaOWF825SantaMarta,MagdalenaOWFGoleta2032/08/026OWFBitácora510Cartagena,BolívarOWFBitácoraSASESP2032/08/067VientosAlisios200SantaCatalina,BolívarParqueEólicoOffshoreAlisiosSAS2025/08/128OWFBarloventoI50Uribia,LaGuajiraOWFBarloventoSASESP2034/12/319OWFBarloventoII50Uribia,LaGuajiraOWFBarloventoSASESP2034/12/3110OWFBarloventoIII50Uribia,LaGuajiraOWFBarloventoSASESP2034/12/3111OWFBarloventoIV50Uribia,LaGuajiraOWFBarloventoSASESP2034/12/31Table3:ProjectsinthepipelineMapofColombia’soffshorewindpotentialMapoftheseabedareasincludedintheannexoftheResolution40284of2022issuedbytheMinistryofMinesandEnergyColombiaisprimedtolaunchthefirsttendertoallocateseabedareasforoffshorewindenergyexploration,takinganearlyleadasafirstmoverinLatinAmericaandtheCaribbean.AjustenergytransitionisapriorityforthegovernmentofPresidentGustavoPetro,basedontheneedtoapproachthetransitionbyintegratingsocialandtechnicalprinciplessupportedbytechnologiessuchasoffshorewindenergy.Insupportofthisagenda,thegovernmentcommissionedaroadmapforoffshorewinddevelopment,whichidentifiesthepotentialofmorethan50GWandtargetsbetween3GWand9GWofinstalledcapacitybetween2030and2050offthecountry’sAtlanticOceancoast.Apipelineof11projectswithatotalof5GWofcapacityhasalreadybeenregisteredbydeveloperswiththeenergyplanningbodyUPME.ThroughResolution40284of2022issuedbytheMinistryofMinesandEnergyinconjunctionwiththeGeneralMaritimeDirectorate,thegovernmenthasregulatedtheprocedurefortheallocationofsitesforprojectdevelopmentintheseabedareasalreadyidentifiedforthispurpose.TheMinistryofMinesandEnergyannouncedtherulesforafirstcompetitivetenderroundtobeenactedinthesecondsemesterof2023.ItwilltargettheAtlanticareafortheallocationoftemporarymaritimepermitsforoffshorewinddevelopment.Regulatoryactivityisexpectedintheshortandmediumtermtostreamlinethepermittingprocessforprojectdevelopmentaccordingtothetimelinesoutlinedintheresolutiontograntdefinitiveconcessionsfortheseabedareastobeallocatedinthetender.ColombiaMarketstoWatchGWEC.NET88TheoffshorewindenergylandscapeinAfricaholdsimmensepromiseasatransformativeforceinthecontinent’ssustainableenergytransition.CountriessuchasMorocco,Egypt,SouthAfricaandKenyaareleadingthechargetowardsharnessingthevastrenewablepotentialoftheircoastalregions.Morocco’sstrategiclocationalongtheAtlanticCoastoffersanidealsettingforoffshorewindfarms,capitalisingonstrongandconsistentwinds.Egypt,endowedwiththeMediterraneanandRedSeacoasts,hasembarkedonambitiousplanstodiversifyitsenergymix,withoffshorewindplayingacrucialrole.SouthAfrica’shighdemandforenergy,advancedinfrastructureandprogressivepolicieshavepositioneditasakeyplayerinthecontinent’srenewableenergyscene,withpotentialforoffshorewindprojectsalongitsvastcoastline.Atpresent,nooffshorewindfarmsexistinAfrica.However,severalcountriesareexploringthepotentialtoharnessoffshorewindintotheirenergymixes.Forinstance,inSouthAfrica,theCouncilforScientificandIndustrialResearch(CSIR)isexploringwhetheroffshorewindcouldhelpinjectmoreenergyintoareaswithoutthegridconstraintscurrentlybeingexperiencedinthecountry.AfricaMarketstoWatch89GWECGLOBALOFFSHOREWINDREPORT2023MarketstoWatchUnlockingvastrenewablepotentialSouthAfrica’scoastalwatersholdtremendouspotentialforoffshorewindenergygeneration,offeringaviablesolutiontothecountry’senergychallengesandtheneedforsustainablepowersources.SouthAfrica’senergylandscapehasbeenmarredbyanongoingenergysupplydeficit,resultinginfrequentelectricityshortagesandrisingcosts.Toaddresstheseissuesandtransitiontocleanerenergy,thecountryhasincreasinglyturnedtorenewablesources,includingwindenergy.Theoffshorewindsector,inparticular,offerssignificantadvantagesoveritsonshorecounterpart,suchashigherwindspeedsandincreasedcapacityfactors.ThecoastalgeographyofSouthAfricapresentsawiderangeofbathymetry,oroceandepth,whichiscrucialwhenassessingthecountry’soffshorewindpotential.Shallowwatersofupto60metresalongthecoastofSouthAfricahavelimitedpotentialforfixed-bottomturbineswiththenotableexceptionoftheareabetweenDurbanandRichardsBay,alongtheeastcoaststands,whereaveragewindspeedsexceed9m/s.Thisregionoffersanappealinglocationforoffshorewindfarmdevelopmentduetoitsproximitytoexistinginfrastructure,includingcommercialports.DeeperwatersofftheSouthAfricancoastdemonstrategreatpotentialforfloatingturbines.NoteworthyareasincludethewestcoastneartheNorthernCape,thesouth-westcoastneartheWesternCape,theeastcoastneartheEasternCape,andthenorth-eastcoastnearKwaZulu-Natal.Theseregionsalsobenefitfromtheirproximitytocommercialharbours,whichreduceslogisticalbarrierstoentry.OffshorewindfarmsintheseregionshavethepotentialtosignificantlycontributetoSouthAfrica’srenewableenergymix.Evenafterconsideringlossesandothertechnicalfactors,estimatessuggestthatfixed-bottomturbinescouldyieldapproximately64GWofinstalledpowercapacity,whilefloatingturbinescouldofferasubstantial764GW.Bytheendof2022,SouthAfrica’stotalinstalledwindcapacity(onshore)was54GW,meaningthatoffshorewindpotentialcanaddsignificantcapacitytothegrid.However,offshorewinddevelopmentisnotwithoutchallenges,includingbiodiversityconcerns,policyframeworksandshippingrestrictions.AllTheseelementsneedtobecarefullyconsideredduringtheplanningandimplementationstagesofoffshorewindprojects.TofullyrealiseSouthAfrica’soffshorewindpotential,governmententitiesmustworktogetherwithrenewableenergydevelopersandotherstakeholdersatthesametimeasprovidingpolicysupport,investmentincentivesandstreamlinedregulatoryprocesses.OffshorewindpowercanprovideastableandreliablesourceofelectricityforSouthAfricaatthesametimeascreatingjobopportunitiesandstimulatingeconomicgrowth.SouthAfricaRegionsshowinggreatpotentialforoffshorewind.Source:Energies2023,16(9),3668;https://doi.org/10.3390/en16093668GWEC.NET90MARKETOUTLOOK2023-203291GWECGLOBALOFFSHOREWINDREPORT2023GWECGLOBALOFFSHOREWINDREPORT2022Russia’sinvasionofUkrainehaspermanentlyreshapedtheglobalenergymarketandamplifiedthecallforanacceleratedenergytransition.Theurgencyofensuringsecureandaffordableenergysupplieswhilemeetingclimatetargetshaspropelledwindpowerdevelopmentintoanewphaseofevenfastergrowth.Challengessuchasinflation,increasedcapitalcostandasupplychaincrunchhavecreateduncertainty,forcingdeveloperstoreviewtheviabilityoftheirprojectsandinsomecaseseventoterminatetheirofftakecontractsandstopdevelopingprojectsdueforconstructioninthenextfiveyears(2023–2027).Despiteallofthis,theglobaloffshorewindmarketoutlookinthemediumandMarketOutlook2023-2032Newoffshorewindinstallations,global(MW)CompoundAnnualGrowthRate.Source:GWECMarketIntelligence,July2023EuropeChinaAsiaPacificexChinaNorthAmericaOther2032e2031e2030e2029e2028e2027e2026e2025e2024e2023e202220465246050525148800029161200065271400028842335959815000269535351080815000150001500015000150008100550055001500090006995553550303256450045004500450016225264002962029500125917695331559135010001200955257461545087711743030828407555424560200335644550059220CAGR+31%CAGR+12%GlobalOffshoreMarketOutlookto2032GWEC.NET92MarketOutlook2023-2032longterm,from2028onwardstilllookspromising.Withacompoundaverageannualgrowthrateof31%until2027and12%uptothebeginningofthenextdecade,newinstallationsareexpectedtosailpastthemilestonesof30GWin2026and50GWby2030.GWECMarketIntelligenceexpectsmorethan380GWofnewoffshorewindcapacitytobeaddedoverthenextdecade(2023–2032),bringingtotaloffshorewindcapacityto447GWbytheendof2032.However,onlyone-thirdofthisprojectednewvolumewillbeaddedinthefirsthalf(2023–2027)duetonear-termchallenges.Annualoffshorewindinstallationscapacityisexpectedtoquadruplein2028from8.8GWin2022andpass60GWin2032,bringingitsshareofglobalnewinstallationsfrom11%in2022to30%by2032.FordecadesEuropehasbeentheworld’slargestregionaloffshorewindmarketintermsofcumulativeoffshorewindinstallation.However,itlostthetitletoAsiaPacificin2022asaresultofstronggrowthinChinainthepastfiveyears.APAC’sleadingpositionintotaloffshorewindinstallationsisunlikelytobechallengedinthenextdecade(2023–2032),butEuropeislikelytobecomethelargestmarketfornewinstallationsfrom2030.ThedualobjectiveofachievingenergyindependencefromRussianoilandgaswhilefightingclimatechangeislikelytopushEurope’sannualoffshorewindinstallationsbeyondthe10GWmilestonein2027and25GWin2030.NorthAmericawillremainthethirdlargestoffshorewindmarketby2032,followedbyLatinAmerica.NooffshorewindinstallationsareexpectedinAfricaandMiddleEastregionduringtheforecastperiod.Inthenearterm(2023–2024),alloftheexpectedgrowthoutsideofEuropewillcomefromAPAC,primarilyfromMainlandChinaandChineseTaiwan.DuetoexpecteddelaysinprojectexecutionofftheUSEasternCoast,meaningfulcapacitycontributionsfromNorthAmericawillnotbeavailableuntil2025whenthemulti-GWlevelofannualinstallationsislikelytobeachieved.Despiteaprojectpipelineofmorethan170GWinBrazilandsomeprogressinColombia,nosizablevolumeislikelytoemergefromLatinAmericauntiltheendofthisdecade.Ournear-termoffshorewindmarketoutlook(2023–2027)wasbuiltusingabottom-upapproachandisbasedonGWECMarketIntelligence’sglobaloffshorewindprojectdatabase,whichcoversprojectscurrentlyunderconstruction,globalauctionresultsandannouncedoffshorewindtendersworldwide.Forthemedium-termmarketoutlook(2028–2032),asidefromexistingprojectpipelines,atop-downapproachwasalsoused,whichtakesintoaccountexistingpolicyandmedium/long-termnationalandregionalleveloffshorewindtargets.Sinceourmedium-termoutlookreflectscurrentdeclarednationalandregionaltargets,itishighlylikelythatitwillincreasefurtherasthesetargetsincrease.Ontheotherhand,thereiscurrentlyanimplementationgapbetweendeclaredtargetsandtherateofannualinstallations.GWECMarketIntelligenceexpectsmorethan380GWofnewoffshorewindcapacitytobeaddedoverthenextdecadeMarketOutlook2023-2032GWECGLOBALOFFSHOREWINDREPORT202293CompoundAnnualGrowthRate.Source:GWECMarketIntelligence,July2023TheoffshorewindindustrystartedinEuropein1991,whentheworld’sfirstoffshorewindprojectwasinstalledinDenmark.Throughthreedecadesofdevelopment,fixed-bottomoffshorewindtechnologyhasmatured,withsupplychainsbecomingestablishedandtensofthousandsofjobsbeingcreatedincountriesneighbouringtheNorthandBalticSeas.In2009,Norwaycommissionedtheworld’sfirstMW-scalefloatingoffshorewindturbine,makingEuropethebirthplaceforfloatingwind.Asthetechnologyhubforfloatingwindturbinesandfoundations,Europeremainedtheworld’slargestmarketforfloatingwindin2022.WhileEuropelostitsleadingpositiontoAPACincumulativeinstallationslastyearandisunlikelytorecapturethistitleinthenexttenyears,annualinstallationsintheOldContinentareexpectedtosurpassAPAC’sfrom2030.OurgrowthprojectionforEuropeisbasedonseveralelements:1)Fixed-bottomoffshorewindhasbecomethemostcompetitiveelectricitygenerationtechnologyafteronshorewindandsolarPV,butwithconsiderableadvantagesintermsofbeingabletodeployatscale.2)ThecommercialisationoffloatingwindwillunlockthepotentialindeepwatersintheNorthSea,MediterraneanSeaandAtlanticOcean.3)TheEU’snewenergysecuritystrategy,REPowerEU,willaccelerateoffshorewindandrenewablehydrogendeploymentonthebackofEurope’surgencytoreplacefossilEurope342342369480603025734534272845352756351010500700530620600700700700750750700504967608256505002460514829166527959810808162252046526400296202950020222023e2025e2026e2027e2024e2028e2029e2030e2031e2032eTheUKGermanyDenmarkNetherlandsFranceBelgiumPolandIrelandNorwayRestofEuropeCAGR+34%CAGR+22.8%11791420206210282105291018609469501227163810001320180020002000215023003000400015001425179040003000400020001500545045003000400013202000150063001000450027002500200015001000755017504915500050005000500060006000Newoffshorewindinstallations,Europe(MW)MarketOutlook2023-2032GWEC.NET94fuelswithrenewablestoachieveenergysecurityintheaftermathoftheRussianinvasionofUkraine.4)TheEU’snetzerocommitments,whichrelyonanoffshorewindtargetof300GWby2050aspartoftheEUGreenDeal.5)TheEU’sGreenDealIndustrialPlantostrengthenEurope’scleanenergyindustries.GWECMarketIntelligencepredictsadouble-digitgrowthrateforEuropeinthisdecade,butexplosivemarketgrowthinEuropeisunlikelytohappenuntil2026.Offshorewindadditionsinthenearterm(2022–2025)areexpectedtoberelativelyslow,withaverageannualinstallationsstayingatthe4.8GWlevelduetoloweractivitylevelsinestablishedNorthSeamarketsincludingGermany,DenmarkandBelgiumaswellastheimpactofcurrentchallengingmarketconditionsonoffshorewindprojectdevelopment.However,withmulti-GWwindprojectsfromRound3and4auctionsintheUKcomingintooperationandutility-scaleprojectsbecomingconnectedinnewmarketslikePolandandIreland,newinstallationsinEuropearelikelytopassthe10GWmilestonein2027.IfmoreprojectsmaterialisefromtheannouncedauctionplansinmaturemarketssuchasDenmarkandNetherlands,andfromtheBalticSea,annualgrowthinEuropecanpotentiallyreach20GWin2029andcloseto30GWin2030–assumingthesupplychainandinfrastructurecancope.Around78%ofthetotalvolumepredictedtobeaddedinEuropeinthenexttenyearswillbebuiltinthesecondhalfofthisperiod(2028–2032).TheUKTheUKisthelargestoffshorewindmarketinEurope.AsoftheendofMay2023,nearly10GWofoffshorewindprojectswereunderconstructionandmorethan100GWofprojectswereatdifferentstagesofdevelopment,whichisonlysecondtoChinaworldwide.InJuly2022,almost7GWofnewoffshorewindprojectswontheRound4CfDauction.Inthesamemonth,theCrownEstateidentifiedfiveareasfora4GWfloatingwindauctionintheCelticSea.InAugust,theCrownEstateopenedtheInnovationandTargetedOilandGas(INTOG)offshorewindleasingprocessandawardedthreemorefloatingwindprojectsundertheScotWindseabedleasing.Unit:GW202720302035204020452050EU≥60≥300UK50Germany3040≥70Netherlands22.25070Denmark12.9Belgium5.7France1840Poland10.9Norway30Ireland730Spain3Greece2Portugal10EsbjergDeclaration≥65≥150MarienborgDeclaration19.6OstendDeclaration120300ThelatestoffshorewindtargetsinEuropeEitherinoperationorunderdevelopmentby2027CapacitytobeawardedthroughauctionsNorthSeacountrieshavesetajointtargetthroughtheEsbjergDeclaration(Germany,Denmark,BelgiumandtheNetherlands)BalticSeacountieshavesetajointtargetthroughtheMarieborgDeclaration(Denmark,Germany,Estonia,Latvia,Lithuania,Poland,FinlandandSweden)NorthSeacountieshavesetajointtargetthroughtheOstendDeclaration(Belgium,Denmark,Germany,Netherlands,France,Ireland,Luxembourg,NorwayandtheUnitedKingdom)Source:GWECMarketIntelligence,July2023MarketOutlook2023-203295GWECGLOBALOFFSHOREWINDREPORT2023Entering2023,theUKgovernmentconfirmedthebudgetfortheRound5CfDauction.Althoughfixed-bottomoffshorewindwillnowbecompetingalongsideotherestablishedtechnologies,floatingwindwillcompeteforthebudgetavailableforemergingtechnologies.InMarch,13offshorewindprojectstotalling5.5GWwontheINTOGleasinground,makingittheworld’sfirstleasingrounddesignedtoenableoffshorewindenergytodirectlysupplyoffshoreoilandgasplatforms.ToboosttheUK’senergysecurity,inApril2022,thegovernmentincreasedthe2030offshorewindtargetfrom40GWto50GW,5GWofwhichistargetedforfloatingwind.GermanyThesecondlargestoffshorewindmarketinEurope,Germanyhasonlyconnectedthreesmallprojectsinthepastthreeyears,duetounfavourablemarketconditionsandalackofmid-termvisibility.However,encouragingoffshorewindlegislationhasbeenreleasedsince2022.ThenewGermangovernmentamendeditsoffshorewindlegislationinApril2022throughthe‘EasterPackage’requiring30GWofoperationaloffshorewindby2030,40GWby2035andatleast70GWby2045.InJuly,thegovernmentamendedtheOffshoreWindAct(WindSeeG)tointroducetwo-trackauctionsystems,onewithsitescentrallydevelopedbystateauthoritiesandanotherwithsitesnotpre-developedandallowedfor‘negativebidding’.Inaddition,thisnewActwillprocureoffshorewindpowerforgreenhydrogenproductionthroughsixannualtenders,eachwith500MWcapacity,from2023.TocutitsrelianceonRussianfossilfuels,GermanysignedacooperationagreementonoffshorewinddevelopmentandgreenhydrogenwiththreeNorthSeacountriesthroughtheEsbjergDeclaration,eightBalticSeacountriesthroughtheMarienborgDeclarationandeightNorthSeacountriesthroughtheNorthSeasEnergyCooperationandOstendDeclaration.Tosupportthecountry’soffshorewindtarget,inJanuary2023,Germany’sFederalMaritimeandHydrographicAgency(BundesamtfürSeeschifffahrtundHydrographie,orBSH)releasedanoffshorewindareadevelopmentTotaloffshorewindaddedbetween2022and2032Source:GWECMarketIntelligence,July2023Belgium2%France4%Netherlands13%Denmark9%Germany15%UnitedKingdom28%RestofEurope14%Norway3%Ireland5%Poland8%157GWMarketOutlook2023-2032GWEC.NET96planfortheNorthSeaandtheBalticSea,whichmapsoutatotalof36.5GWofoffshorewindbuildoutby2030.DenmarkAswellasbeingthebirthplaceofoffshorewindinEurope,Denmarkremainsthehubforoffshorewindtechnology.TosecureitsenergyindependencefromRussia’soilandgaswhilesupportingtheEU’snewenergysecuritystrategy,thecountryhostedthreeNorthSeacountriesandeightBalticSeacountriesinMayandAugust2022tosigntheEsbjergdeclarationandMarienborgDeclaration,respectively.Atthebeginningofthisyear,thegovernmentannouncedaplantoput9GWofnewoffshorewindcapacityoutfortenderingbytheendoftheyear,whichcanbeincreasedto14GWafterthe‘overplanting’optionwasagreedbymostpartiesthroughapoliticalagreementsignedinMay2023.Thegovernment,however,suspendedtheprocessingofoffshorewindfarmprojectsundertheopen-doorschemeinFebruary2023forfeartheschememaybeinbreachofEUlaw.Althoughnineprojectstotalling3.6GWwerereleasedandcancontinuewiththedevelopment,24outofthe33offshorewindprojectsproposedundertheschemehavebeencancelled.NetherlandsTheNetherlandsisthethirdlargestoffshorewindmarketinEuropewith1.5GWofoffshorewindcapacitycurrentlyunderconstruction.TomeettheEU’sCO2emissionsreductiontarget,thecountryincreasedits2030offshorewindtargetfrom11.5GWto22.2GWinNovember2022.Lastsummer,thegovernmentdisclosedthetenderingtimelinesandlocationsfornineoffshorewindprojectswithacombinedcapacityofupto13.4GW.Theprojects,rangingfrom700MWto2GWinindividualcapacity,arescheduledtobeputouttotenderbetweenthesecondquarterof2025andtheendof2027.Followingtherecentlyannounced50GWby2040and70GWby2050offshorewindtargets,theDutchMinistryofEconomicAffairsandClimatePolicy(EZK)isnowidentifyingfurtheroffshorewindareaswithadraftroadmapexpectedtobereleasedbytheendof2023.BelgiumBelgiumisEurope’sfifthlargestoffshorewindmarketintotaloffshorewindinstallations,butthecountryhasrunoutofitsprojectpipelinesincethe487MWSeamadeand219MWNorthwester2projectscameonlinein2020.Itisunlikelytoconnectanynewcapacityuntil2026.InOctober2021,Belgium’sCouncilofMinistersapprovedaproposaltoincreasethecapacitytobeofferedattheupcomingtendersforthePrincessElisabethoffshorewindzonefromtheinitiallyplanned2.25GWtoupto3.5GW.Italsoapprovedconnectingthewindfarmsinthiszonetoanenergyisland.Belgiantransmissionsystemoperator(TSO)97GWECGLOBALOFFSHOREWINDREPORT2023EliareceivedanEUgrantlastDecember,undertheRecoveryandResilienceFacility(RRF),fortheenergyisland.Foundationworkisexpectedtostartin2024.OncethePrincessElisabethoffshorewindzoneisfullyconnectedby2030,Belgium’stotaloffshorewindcapacitywillreach5.76GW.FranceBytheendof2022,Francehadinstalled482MWofoffshorewindcapacity.Eightprojectstotalling2.5GWareunderconstruction,ofwhichthreearedemonstrationfloatingwindprojects.AccordingtotheMultiannualEnergyProgramme(Programmationpluriannuelledel’énergie,PPE)releasedbytheFrenchgovernmentin2020,8.75GWofoffshorewindcapacitywillbeputouttotenderby2028.Asoftoday,threefixed-bottomandthreefloatingwindprojects,foratotalof4.3GW,havebeenfloatedforauction,withthe1GWAO4projectawardedinMarch2023.Toreachits2050netzerotarget,theFrenchgovernmenthassignedanoffshoresectordealwithFrance’swindindustry,aimingtoachieve40GWofoffshorewindby2050spreadover50windfarms.PolandInlate2020,Poland’sCouncilofMinistersadoptedadraftbillsupportingthedevelopmentofoffshorewindenergyintheBalticSea.Thedraftbill,whichwassignedintolawbythePresidentinJanuary2021,allowsfor10.9GWofoffshorewindcapacitytobeeitheroperationalorunderdevelopmentby2027.BytheendofJune2021,thePolishEnergyRegulatoryOffice(ERO)hadawardedaCfDtosevenoffshorewindprojectstotalling5.9GW.AccordingtothePolishOffshoreWindAct,thesecondphaseofdevelopmentwillincludetwoauctions,thefirstin2025andthesecondin2027,eachwith2.5GWofcapacity.InApril2023,thegovernmentannouncedamoreambitioustarget.Itnowplanstoholdfourauctionswithacombinedcapacityof12GWinthesecondphaseofoffshorewindexpansion,whichwillallowthecountrytohave18GWofoffshorewindcapacityatdifferentstagesofdevelopmentbytheendofthisdecade.NorwayTherearethreefloatingoffshorewindsitescurrentlyinoperationinNorway,makingthecountrythesecondlargestfloatingmarketintermsoftotalinstallations.InMarch2023,thegovernmentofficiallyopenedtheapplicationwindowforNorway’sfirstoffshorewindauction.Therightstodevelopthe1.5GWSørligeNordsjøIIPhase1projectandthe1.5GWUtsiraNordfloatingwindprojectwillbeawardedbytheendof2023.Consideringthehigherriskprofile,theNorwegiangovernmenthasproposedthatthefloatingsitesintheUtsiraNordleaseareabeselectedbasedonqualitativecriteria,ratherthanthroughanauction.InMay2022,thenewlyelectedgovernmentlaunchedalarge-scaleItnowplanstoholdfourauctionswithacombinedcapacityof12GWinthesecondphaseofoffshorewindexpansion,MarketOutlook2023-2032GWEC.NET98greeninvestmentplanaimedatallocatingseaareastodevelop30GWofoffshorewindcapacityby2040,withthenextroundoflicenceawardsforoffshorewindinthenewareasexpectedtolaunchin2025.IrelandAccordingtoIreland’sClimateActionPlan,thecountryaimstohave5GWoffshorewindby2030withalong-termplantotapintoitsfloatingwindpotentialofatleast30GWindeeperwaters.InJuly2022,theIrishGovernmentincreasedthecountry’soffshorewindtargetfor2030to7GW.LastDecember,theIrishGovernmentissuedMaritimeAreaConsents(MACs)forthefirstphaseofsevenoffshorewindprojects,whichenablesphase-oneprojectstoparticipateintheORESS1,thefirstauctionforoffshorewindundertheRenewableElectricitySupportScheme(RESS).InMay2023,fourprojectswithacombinedcapacityofnearly3,100MWwereawardedunderORESS1.Earlythissummer,theIrishgovernmentopenedtheconsultationprocessforORESS2withthefirstauction,ORESS2.1for900MW,plannedfortheendof2023orearlynextyear.Additionally,thegovernmentplanstohave2GWoffloatingwindcapacityindevelopmentby2030.PortugalPortugalonlyhasthe25MWWindFloatAtlantic(WFA)floatingwindfarminoperationatpresent.Thecountryplannedtoput3–4GWoffloatingwindcapacityupforauctionlastsummer.Althoughitsfirstoffshorewindauctionwaspostponedto2023,theplannedcapacityforthefirstauctionhasbeenupgradedtwiceto10GW.InJanuary2023,thegovernmentreleaseddraftareasfor10GWofoffshorewind,butthissummertheinter-ministerialworkinggroupproposedputtingtheareasouttotenderinphases,withthreeareastotalling3.5GWtobeofferedthisyearthroughoneormorecompetitiveprocedures,andtheremainingcapacitytobeallocatedinsubsequentphasesuntil2030.SpainSpainhas10MWoffshorewindcapacityinstalled,buttheRoadmapfortheDevelopmentofOffshoreWindandMarineEnergyapprovedinDecember2021bySpain’sCouncilofMinistersseesthecountryreachingupto3GWof(floating)offshorewindby2030.99GWECGLOBALOFFSHOREWINDREPORT2023ThefirstoffshorewindprojectwasbuiltinJapan20yearsago,buttherewaslimitedprogressintheregionuntilannualinstallationsinChinapassedthe1GWmilestonein2017andthecountryreplacedtheUKastheworld’stopmarketinnewinstallationsayearlater.APACreplacedEuropeastheleadingregionaloffshorewindmarketinnewinstallationsin2020andincumulativeinstallationsin2022,primarilydrivenbystronggrowthinChina.GWECMarketIntelligence’slatestmarketoutlookshowsthatChinawillAsiaPacificOffshorewindgrowthto2032inAsiaPacific(MW)CompoundAnnualGrowthRate.Source:GWECMarketIntelligence,June202320222023e2025e2026e2027e2024e2028e2029e2030e2031e2032e63119769135591688417695182562003020535219952310024000CAGR+24%CAGR+6%80%82%89%83%85%82%75%73%68%65%63%ShareofChineseoffshoremarketChinaTaiwan(China)SouthKoreaJapanVietnamIndiaAustraliaRestofAsia505280001200014000150001500015000150001500015000150001500150015001500150015001500150014001100150015001000150015001000100010001000800100010001500100010001395113511301000695196412906427001175842001741753004002203008040035660060050050040020MarketOutlook2023-2032GWEC.NET100continuetobethedominantmarketintheregionforthenextfiveyears(2023–2027),withamarketshareofmorethan80%.However,China’smarketshareisexpectedtodropto68%in2030and63%in2032.Weexpectthemarkettobecomemorediversifiedinthesecondhalfofthisforecastperiodasmoreutility-scaleoffshorewindprojectsareexpectedtocomeonlineinJapan,SouthKoreaandVietnamfrom2027.ThefirstbatchofoffshorewindprojectdevelopmentislikelytotakeplaceinnewmarketssuchasIndia,thePhilippinesandAustraliatowardstheendofthisdecade.Intotal,41%ofthepredictedoffshorewindadditionsforthisregionwillbebuiltin2023–2027,withtheremaindertobeinstalledinthesecondhalfoftheforecastperiod.WithstronggrowthreturningtoChinain2025,itislikelythatnewinstallationsinAPACin2026willexceedthe2021record.ThetopfivemarketsintotalnewAPACadditionsinthenexttenyearswillbeChina,ChineseTaiwan,SouthKorea,VietnamandJapan.ChinaiscurrentlythemostmatureoffshorewindmarketoutsideEurope.Drivenbytheinstallationrushstartingfromthesecondhalfof2019,thedomesticoffshorewindsupplychainandinfrastructurewerebuiltquicklyalongChina’seastandsoutheastcoast.Asoftoday,largeoffshorewindmanufacturingbasesandportscanbefoundinShandong,Jiangsu,Zhejiang,FujianandGuangdongprovinces,andmorebasesareexpectedinHebei,GuangxiandHananprovincesinthenextcoupleofyears.WhilesupplychaincapacitybuildingactivitieshavecontinuedintheareaofChineseTaiwaninthepastthreeyears,theothermarketsarestillatearlystagesofdevelopmentwithmostofthemfacingthechallengeofdevelopingalocalsupplychainwhilebuildingthenecessaryskillsandworkforce.BasedontheinvestmentplansandpartnershipsrecentlyannouncedbyEuropeanplayersinSouthKoreaandJapan,similarsuccessislikelytobeduplicatedinthesetwomarkets.TounlocktheoffshorewindpotentialandfurtherbringdownthecostofoffshorewindenergyinAPAC,however,regionalcooperationinsupplychainandinfrastructureisessential.ChinaChinaenteredtheoffshorewindsectorrelativelylatecomparedwithEuropeancountries:itsfirstcommercialoffshorewindprojectwasnotfullycommissioneduntil2010.Offshorewinddevelopmentstartedgainingmomentumfromthebeginningofthe13thfive-yearsplanperiod(2016–2020)andacceleratedafterthegovernmentannounceditsfeed-intariff(FiT)phaseoutplanin2019.Afteranastonishinglevelofgrowthin2021drivenbythecut-offdatefortheFiT,newinstallationsdroppedsignificantlylastyear.Connecting5GWofnewoffshorewindin2022withoutfinancialsupportfromcentralgovernment,however,hasdemonstratedtheresilienceofChina’soffshorewindindustryandshownthatitscapabilitytomaintainstablegrowthintheneweraof‘gridparity’,wherebyelectricitygeneratedfromoffshorewindwillreceivethesameremunerationasthatfromcoal-firedpowerplants.AccordingtothelateststatisticsfromtheChinaRenewableEnergyEngineeringInstitute,sixprovinceshavecompletedtheiroffshorewinddevelopmentplansforthe14thfive-yearplanperiod(2021–2025).BytheendofJune2023,China’sNationalEnergyAdministrationhadreviewedandapproved30GWofnearshorewindand35GWofoffshorewindcapacityindeepwaters.Morecapacityisexpectedtobeapprovedafteranotherfourprovincescompletethesameprocess.ConsideringthatChinahastheworld’slargestandmostcompetitivewindsupplychainandthemarketisreadytocompletethetransitionfromnearshoretodeepwaterinstallationsbytheendofTotaladdedbetween2023and2032Source:GWECMarketIntelligence,July202320222032e2027e64GW187GW447GW0.1%EuropeChinaOtherAsiaPacificOther47%354249%4%51%8%6%38%11%9%MarketOutlook2023-2032101GWECGLOBALOFFSHOREWINDREPORT20232025,GWECMarketIntelligencepredictsthat139GWofnewoffshorewindcapacitywillbebuiltinthecomingdecade.ThisprogresswillfurtherreinforceChina’spositionasagloballeaderintheoffshorewindsector.Taiwan(China)DespitethechallengesoftheCOVID-19pandemicandtyphoon-relateddisruptions,morethan1GWofnewoffshorewindcapacitywasconnectedinChineseTaiwanlastyear,makingitthesecondlargestmarketintheregion.Morethan2.5GWofoffshorewindcapacityisunderconstruction,whichmarksthehalf-waypointtowardachievingits5.6GWby2025offshorewindtarget.InAugust2021,thegovernmentofficiallyannounceditsRound3offshorewindallocationplanfor2026–2035,withsevenprojectstotalling3GWallocatedthroughRound3,phase1A,inDecember2022.IfallanticipatedprojectsfromtheRound3offshorewindauctionsareallocatedandcomeonlineontime,TaiwanislikelytomaintainitscurrentpositionwithintheAPACregion.SouthKoreaSouthKoreaonlyhas142MWofoffshorewindcapacityinoperationbutanambitioustargettobring14.3GWofoffshorewindonlineby2030.AsofQ42022,69offshorewindfarmprojectswithacombinedcapacityofmorethan20GWhadreceivedlicencesfromtheElectricityRegulatoryCommissionundertheMinistryofTrade,IndustryandEnergy.Offshorewind–particularlyfloatingwind–hasattractedsignificantinterestfromdomesticandinternationalrenewablescompaniesaftertheKoreangovernmentsignedtheGreenNewDealin2020andcommittedtonetzeroayearlater.However,permittingprogressinthepast12monthshasbeenslowduetooppositionfromlocalresidents,fishermenand,insomecases,eventheMinistryofDefence.GWECMarketIntelligence,therefore,maintainsitspreviousyear’sforecastandpredictsthatonlyhalfofthecountry’s2030offshorewindtargetwillmaterialisebytheendofthisdecade.JapanAlthoughJapanwasthefirstcountrytobuildanoffshorewindprojectinTotaloffshorewindaddedbetween2023and2032Source:GWECMarketIntelligence,July2023China75%Others1%Australia1%India2%Vietnam4%Japan4%Taiwan(China)8%SouthKorea5%186GWMarketOutlook2023-2032GWEC.NET102theregion,itdidnothaveanoffshorewindtargetuntillate2020,whentheJapanesegovernmentapprovedthe‘VisionforOffshoreWindIndustry’withtheaimofachieving10GWofoffshorewindby2030and30–45GWby2040.Thecountry’sfirstfloatingtender(16.8MW)andfirstfixed-bottomoffshorewindauction(1.7GW)havebeencompletedandthesecondfixed-bottomauctionwithacombinedcapacityof1.8GWacrossfoursiteswaslaunchedlastNovember,withtheresultstobeannouncedinMarch2024.InApril2023,thegovernmentreleasedaplantoallowoffshorewindprojectstobebuiltinitsexclusiveeconomiczone(EEZ),tosupportoffshorewinddeployment–includingfloatingwind.InMayitupgradedfivesitesfromthe‘PreparatoryStage’tothe‘PromisingStage’andinJuneitstartedthenominationprocessforfloatingwinddemonstrationsites.Basedontheexistingprojectpipelineandauctionplans,webelievethat6.5GWofnewcapacityislikelytobeaddedinthenexttenyears,ofwhichmorethan85%willcomebetween2028and2032.VietnamVietnamisthethirdlargestmarketintheAPACregionincumulativeoffshorewindinstallations.However,offshorewindgrowthinthecountrycollapsedaftertheinstallationrushthattookplacein2021.Bytheendof2022,around500MWofinstalledoffshorewind(intertidal)capacitywaswaitingtogothroughthePPAnegotiationprocesswithElectricityofVietnam(EVN).However,thecountrymadeheadlinesinthefirsthalfof2023.First,theMinistryofIndustryandTradesetaceilingpriceforwindpowerinJanuary,whichhelpstoinitiatePPAnegotiationsforprojectsthathavebeeninstalledbuthaveyettobecommissioned.Second,thegovernmentformallyapprovedthelong-awaitedPowerDevelopmentPlan8(PDP8),whichsetsa6GWoffshorewindinstallationtargetfor2030(excludingintertidal).Althoughthesetwoupdateswouldincreaseourforecast,GWECMarketIntelligencebelievesthatgrowthmomentumwillnotreturnuntilroute-to-marketpoliciesforthenextroundofoffshorewinddeploymentareinplace.Weexpect5GWofoffshorewindtobeaddedby2030andtheGWlevelofannualinstallationstobeachievedfrom2029.MarketOutlook2023-2032103GWECGLOBALOFFSHOREWINDREPORT2023NorthAmericaistheonlyregionwithoffshorewindprojectsinoperationoutsideofEuropeandAsiaPacific.Bothinstalledsmall-scaleoffshoreprojects,the30MWBlockIslandinRhodeIslandandthe12MWDominionVirginiademonstrationproject,arelocatedintheUS.Basedonthelatestoffshorewindprojectdevelopmentpipeline,weexpecttheregion’sfirstutility-scaleoffshorewindproject,the130MWSouthForkwindfarm,tocomeonlinebytheendofthisyear.Intotal,36.4GWofoffshorewindispredictedtobebuiltinthisregioninthenexttenyears(2023–2032),ofwhich97%willcomefromtheUSandonly1GWfromCanada.AsprojectinstallationofftheUSeasterncoastinthenextthreeorfouryearsislikelytobedelayedduetoNorthAmericaNewoffshorewindinstallations,NorthAmerica(MW)CompoundAnnualGrowthRate.Source:GWECMarketIntelligence,July2025320222023e2025e2026e2027e2024e2028e2029e2030e2031e2032eNorthAmericaCanada5,5005,5004,5004,5004,5004,5003,5352,335955533CAGR+4%CAGR+70%500500MarketOutlook2023-2032GWEC.NET104PPArenegotiationandtermination,onlyone-thirdoftheprojectedcapacityforthenexttenyearsislikelytobedeliveredinthefirsthalf(2023–2027).UnitedStatesTheUSonlyhas42MWofoffshorewindcapacityinoperationbut938MWofprojectsunderconstruction,with17.4GWinadvanceddevelopment(withplannedcommissiondatealreadyannounced)andmorethan30GWintheearlystageofdevelopment.Tosupporttheoffshorewindtargetof30GWby2030setbytheBidenAdministration,aswellastherecentlyannouncedfloatingwindtargetof15GWby2035,theBureauofOceanEnergyManagement(BOEM)heldthreeleasesalesin2022,ofwhichtheoneoffcentralandnorthernCaliforniaisthefirst-everoffshorewindleasesaleontheUSWestCoastandthefirst-evertosupportfloatingwindinthiscountry.InFebruary,BOEMannounceditsproposalforthefirstoffshorewindleasesaleintheGulfofMexicowiththefinalsalenoticesissuedinJuly.Inthesamemonth,BOEMissuedaRecordofDecision(ROD)toOceanWind1.InAugust,BOEMisusedaRODforthe704MWRevolutionWIndproject,makingitthefourthUSoffshorewindprojecttohavereceivedafinalpermit.Atthestatelevel,withnewoffshorewindtargetsrecentlyannouncedinLouisiana,California,MarylandandMaineandanupgradedtargetinNewJersey,combinedstate-leveloffshorewinddevelopmenttargetspassed80GWbyJune2023.AlthoughtheUShasmadegreatprogressinoffshorewindcapacitybuildinginthepast12months,challengingmarketconditions–namely,higherinflation,increasedcapitalcostsandsupplychainconstraints–havecreatedproblemsfortenUSoffshorewindprojectstotalling10.3GWofftheeasterncoast.ThosechallengeshaveforceddeveloperstorequestarevisionoftheirofftakecontractsortoterminatesignedPPAs.RhodeIsland’sstateutilitydecidednottosignaPPAwithdevelopers.GWECMarketIntelligenceisthereforepushingbackthecommissioningdatesanddowngradingits2030offshorewindoutlookfortheUSby2.3GWrelativetothepreviousyear’soutlook.USState-leveloffshorewinddevelopmenttargetsLouisiana5GWVirginia5.2GWMassachusetts5.6GWNewJersey11GWNewYork9GWNorthCarolina8GWMaryland8.5GWConnecticut2.3GWMaine3GWRhodeIsland1.4GWCalifornia25GW84GWMarketOutlook2023-2032105GWECGLOBALOFFSHOREWINDREPORT2023RoadmapoffloatingoffshorewindcommercialisationDemoandtrialphase(2009-2020)Pre-commercialphase(2021-2025)Commercialphase(from2026onward)RoadmapoffloatingoffshorewindcommercialisationFloatingOffshoreMarketOutlookto203280%oftheworld’soffshorewindresourcepotentialliesinwatersdeeperthan60m,butonly188MWofnetfloatingwindcapacityisinoperationworldwide,accountingfor0.3%oftotalinstalledoffshorewindcapacityasoftheendof2022.Followingtheinstallationoftheworld’sfirstMW-scalefloatingoffshorewindturbineinNorwayin2009,demonstrationprojectshavebeeninstalledinbothEuropeandAsiaPacific.Followingmorethanadecadeoftesting,intheearly2020s,floatingwindpassedthedemonstrationstageandenteredthepre-commercialphase.SincethereleaseofourGlobalOffshoreWindReport2022,progresshasbeenmadeineveryregionaroundtheworld.InEurope,theUKgovernmentaddedthreemorefloatingwindprojectsafterCrownEstateScotlandcompletedtheclearingprocessfortheScotWindseabedleasingroundinAugust2022,bringingthetotalfloatingwindcapacityawardedthroughtheScotWindleasingroundtonearly18GW.InMarch2023,13floatingoffshorewindprojectswithacombinedcapacityofaround5.5GWwereselectedbyCrownEstateScotlandintheInnovationandTargetedOilandGas(INTOG)leasinground.Additionally,another4GWoffloatingwindcapacityisexpectedtobeallocatedfromtheproposedseabedleasingintheCelticSealaterthisyear.InNorthAmerica,toachievetheUSfederalgovernment’s15GWby2035floatingwindtarget,BOEMnotonlyheldleasesalesoffcentralandnorthernCalifornialastDecember,withmorethan4.6GWoffloatingwindcapacityexpectedtobebuilt,butalsocompletedadraftenvironmentalassessmentforafloatingwindresearchleaseintheGulfofMainethissummer.InAsiaPacific,China’sRenewableEnergyEngineeringInstituteapprovedthefeasibilitystudyforphaseoneofthe1GWWanningfloatingwinddemonstrationprojectinSeptember2022.The200MWcapacityfromphaseoneisscheduledtobeconnectedbyendof2025,withtheremainingcapacitytobeaddedbyendof2027.Inaddition,thepast12monthssawEurope-baseddevelopersandoilandgascompaniesjoiningforceswithdevelopersinSouthKoreatodevelopthelocalfloatingpipeline,withpreferredturbinesuppliersalreadyselectedfornearly2GWofprojects.Althoughtheglobalfloatingoffshorewindpipelinedoubledinthepast12monthsandnowtops240GW,wepredictthatthecommercialisationoffloatingwindwillnotbereacheduntil2026/2027.Takingintoaccountthehighercostoffloatingwindcomparedwithfixed-bottom,theimpactofthecurrentchallengingeconomicandfinancialconditionsonoffshorewindprojectdevelopment,aswellastheexpectedsupplychainbottlenecksinfloatingwindfoundationsandportfacilities,GWECMarketIntelligencehasdowngradeditsglobalfloatingwindforecastandpredicts10.9GWtobebuiltgloballyby2030,42%lowerthanthepreviousyear’sprojection.TheUK,Norway,Portugal,ChinaandJapanarethetopfivemarketsintotalnetfloatingwindinstallations.Bytheendof2030,theUK,SouthKorea,MarketOutlook2023-2032GWEC.NET106China,PortugalandNorwayarelikelytobethetopfivefloatingmarkets.GWECMarketIntelligencepredictsfloatingwindtobecomefullycommercialisedtowardstheendofthisdecadeandmulti-GWlevelsofnewinstallationstobeachievedpost2029/2030.Therefore,only9%(2.5GW)ofthetotalprojectednewadditions(26GW)willbeinstalledinthefirsthalfoftheforecastperiod.Asforregionaldistribution,weexpectEuropetocontribute66%oftotalinstallationsaddedin2023–2032,followedbyAPAC(32%)andNorthAmerica(6%).Asoftheendof2032,atotalof26.2GWoffloatingwindislikelytobeinstalledworldwide,bringingitscontributiontototalwindinstallationsfromtoday’s0.3%to6%.Ournear-term(2023–2027)outlookisprimarilybasedontheexistingglobalfloatingoffshoreprojectpipeline,butatop-downapproachhasbeenappliedforthemedium-term(2028–2032)outlook,whichtakesintoaccountnationalfloatingwindtargets,announcedauctionplansandtheprojectpipelinesannouncedbymajoroffshorewinddevelopers.MarketOutlook2023-2032107GWECGLOBALOFFSHOREWINDREPORT2023Newfloatingwindinstallations,Global(MW)CompoundAnnualGrowthRate.,Note:thisfloatingwindoutlookisalreadyincludedinGWEC’sglobaloffshorewindforecast.Source:GWECMarketIntelligence,July2023SpainSwedenIrelandSouthKoreaNorwayJapanFranceChinaItalyGreeceTaiwan(China)UnitedKingdomPortugalUnitedStates6.260.2342115522172110682001110505050100100100144100250250200200100250250270250150952505081502032e71202031e42502030e26942029e13502028e12002027e7952026e2992025e592024e1032023e66.4202250070075010001000150015007505005005005001000500500500500500600500500500500350500500500800450900400400300300300300400CAGR+78%CAGR+47%MarketOutlook2023-2032APPENDIX108GlobalOffshoreWindReport2023-MethodologyandTerminologyDatadefinitionsandadjustmentsGWECreportsinstalledandfullycommissionedcapacityadditionsandtotalinstallations.Newinstallationsaregrossfiguresnotdeductingdecommissionedcapacity.Totalinstallationsarenetfigures,adjustedfordecommissionedcapacity.HistoricinstallationdatahasbeenadjustedbasedontheinputGWECreceived.GWECmadetheadjustmentstobothnewandcumulativeinstallationsoverthecourseoftime.Allcurrencyfiguresin$aregiveninUSDollars.DefinitionofregionsGWECadjusteditsdefinitionofregionsforthe2018GlobalWindReportandmaintainstheseinthe2023edition,specificallyforLatinAmericaandEurope.LatinAmerica:South,CentralAmericaandMexicoEurope:GeographicEuropeincludingNorway,Russia,Switzerland,Turkey,UkraineSourcesforthereportGWECcollectsinstallationdatafromregionalorcountrywindassociations.Forthesupplysidedata,GWECcollectsdirectlyfromwindturbineOEMsandcomponentsuppliers.UsedterminologyGWECusesterminologytothebestofourknowledge.Withthewindindustryevolvingcertainterminologyisnotyetfixedorcanhaveseveralconnotations.GWECiscontinuouslyadaptingandadjustingtothesedevelopments.AcronymsAppendix109AneelAgênciaNacionaldeEnergiaElétrica(NationalElectricEnergyAgency)APACAsiaPacificAUDAustralianDollar(currency)BOEMBureauofOceanEnergyManagement(US)BOWEBassOffshoreWindEnergyBSHGermany’sFederalMaritimeandHydrographicAgency(BundesamtfürSeeschifffahrtundHydrographie)CO2CarbonDioxideCOP2626thUNClimateChangeConferenceofthePartiesCOP2828thConferenceofthePartiesCSIRCouncilforScientificandIndustrialResearchCRISCostRecoveryImplementationStatement(Australia)DKKDanishKrone(currency)DOEDepartmentofEnergy(US)DOIDepartmentofInterior(US)DPDemocraticPartyEBLElectricityBusinessLicencesEEZExclusiveEconomicZoneEHBEuropeanHydrogenBankEIAEnvironmentalImpactAssessmentESAEuropeanSpaceAgencyESIAEnvironmentalandSocialImpactAssessmentEVOSSEnergyVirtualOne-StopShopEZKDutchMinistryofEconomicAffairsandClimatePolicyFiTFeed-inTariffGDPGrossDomesticProductGOWAGlobalOffshoreWindAllianceGWhGigawatt-hourGWGigawattsGWECGlobalWindEnergyCouncilHKHongKongDollar(currency)HVDCHigh-VoltageDirectCurrentINTOGTargetedOilandGasIRAInflationReductionActIRENAInternationalRenewableEnergyAgencyISTSInter-StateTransmissionSystemJETPJustEnergyTransitionPartnershipJWPAJapanWindPowerAssociationkWhKilowatt-hourLCOELevelizedCostofElectricityLCAsLifeCycleAssessmentsLCRsLocalContentRequirementsMACsMaritimeAreaConsentsMNREMinistryofNewandRenewableEnergyMOFCOMMinistryofCommerce(China)MWMegawattsNEPANationalEnvironmentalPolicyActNGONon-GovernmentalOrganizationNOAANationalOceanicandAtmosphericAdministrationNRELNationalRenewableEnergyLaboratoryNRRPNationalRecoveryandResiliencePlanNTNewTaiwanDollar(currency)PDP8PowerDevelopmentPlanVIIIPOEMSpanishacronymforMSPPPAPowerPurchaseAgreementPPPPeople’sPowerPartyRfSRequestforSelectionRODRecordofDecision(US)RRFRecoveryandResilienceFacilityRTCRound-the-ClockSNCFSociétéNationaledesCheminsdeferFrançaisSPICStatePowerInvestmentCorporation(China)TSOTransmissionSystemOperatorTWTerawattsUSDUnitedStatesDollar(currency)UKRIUKResearchandInnovationUSUnitedStatesVGFViabilityGapFundingWFAWindFloatAtlanticWTOWorldTradeOrganizationWTIVsWindTurbineInstallationVesselsGWEC.NET110AboutGWECMarketIntelligenceGWECMarketIntelligenceAreasGWECMarketIntelligenceprovidesaseriesofinsightsanddata-basedanalysisonthedevelopmentoftheglobalwindindustry.Thisincludesamarketoutlook,countryprofiles,policyupdates,deep-divesontheoffshoremarketamongmanyotherexclusiveinsights.GWECMarketIntelligencederivesitsinsightsfromitsowncomprehensivedatabases,localknowledgeandleadingindustryexperts.Themarketintelligenceteamconsistsofseveralstrongexpertswithlong-standingindustryexperienceacrosstheworld.GWECMarketIntelligencecollaborateswithregionalandnationalwindassociationsaswellasitscorporatemembers.HowtoaccessGWECMarketIntelligenceCorporateGWECMemberslWindenergyassociationslMarketIntelligencesubscriptionContactContactFengZhaofeng.zhao@gwec.netGWECMarketIntelligencecreatedaMember-onlyareatoprovidemorein-depthmarketintelligencetoGWEC’smembersandtheiremployees.ClickheretogetyourloginMarketInsightsMarketstatistics,marketoutlook,auction/tenderupdatesPolicyandRegulationsCountryprofiles,policyupdates,offshoreupdatesAssetOwnersDatabaseofassetownersinkeymarketsTechnology/SupplyChainWindturbinedata,technologytrends,componentassessmentEnergyTransitionShifttovalue-focused,newwind-basedsolutionsO&MISP-OEM-SelfPerformdatabaseforkeymarketsAppendix111GWECGLOBALOFFSHOREWINDREPORT2022AppendixProductFrequency1.WindEnergyStats/MarketDataWindStats2022(historicannual,accumulative,decommisiondata)AnnualGlobalWindReport2023AnnualWindEnergyStatistics(windenergypenetrationrate,jobs)Annual2.CountryProfiles/PolicyUpdatesCountryProfilesOnshores/CountryProfilesOffshoreAnnualAd-hocPolicyUpdatesAd-hoc3.MarketOutlookGlobalWindMarketOutlook2023-2027(Q1andQ3)Database+ReportSemi-AnnualIndiaMarketOutlookReport2023-2027AnnualGlobalWindWorkforceOutlook2023-2027Annual4.SupplySideDataGlobalWindTurbineSupplySideDataReport2022(byOEM,bytechnology,byturbineratings,modelsanddrivetrain,etc)Annual5.Auctions/TendersGlobalWindAuctionDatabaseAnnual/AuctionTrendsandLearningsQuarterly6.OffshoreWindMarketGlobalOffshoreWindReport2023/MarketEntryOpportunitiesDatabaseAnnual/QuarterlyGlobalOffshoreProjectPipeline(database,inoperationandunderconstruction)Annual/QuarterlyGlobalOffshoreTurbineInstallationVesselDatabaseandReportAnnual/Quarterly7.ComponentsAssessmentBlade(Q42023),Generator(Q42021),Gearbox(Q42022),followedbyothercomponentsSpecialReport8.WindAssetOwners/OperatorsAssetOwnersandOperatorsDatabase(Onshore&OffshoreRanking)AnnualAssetOwnersandOperatorsStatusReport(includingstrategicaltrends)Annual9.O&MO&MServiceProviderDatabase(ISP-OEM-Self-perform)AnnualO&MServiceProviderStatusReport(includingregionaltrends)Annual10.Energytransition,Digitalisation,NewTechnologiesPositionpapers/studies-permitting,CorporatePPAs/Newsolutions,GWECpolicyrecommendationsSpecialReportGWECMarketIntelligenceProductsin2023GWEC.NET112GlobalLeadersSiemensGamesaSiemensGamesaunlocksthepowerofwind.Formorethan40years,wehavebeenapioneerandleªderofthewindindustry,andtodayourteamofmorethan26,000colleaguesworkatthecenteroftheglobalenergyrevolutiontotacklethemostsignificantchallengeofourgeneration–theclimatecrisis.Withaleadingpositioninonshore,offshore,andservice,weengineer,buildanddeliverpowerfulandreliablewindenergysolutionsinstrongpartnershipwithourcustomers.Aglobalbusinesswithlocalimpact,wehaveinstalledmorethan120GWandprovideaccesstoclean,affordableandsustainableenergythatkeepsthelightsonacrosstheworld,whilesupportingthecommunitieswhereweoperate.ShellShellisbuildingaglobalintegratedpowerbusinessspanningelectricitygeneration,tradingandsupply.Shellenteredtheoffshorewindbusinessin2000aspartofaconsortiumthatinstalledthefirstoffshorewindturbineinUKwaters.Today,wehavedeployed,oraredeveloping,overeightgigawatts(GW)ofwindacrossNorthAmerica,Europe,theUK,andAsia.WeseeoffshorewindasacriticalwayofgeneratingrenewableelectricityforourcustomersandmovingShelltowardsitstargetofbeinganet-zeroemissionsenergybusinessby2050orsooner,instepwithsociety.ØrstedTheØrstedvisionisaworldthatrunsentirelyongreenenergy.Ørsteddevelops,constructs,andoperatesoffshoreandonshorewindfarms,solarfarms,energystoragefacilities,renewablehydrogenandgreenfuelsfacilities,andbioenergyplants.Moreover,Ørstedprovidesenergyproductstoitscustomers.Ørstedistheonlyenergycompanyintheworldwithascience-basednet-zeroemissionstargetasvalidatedbytheScienceBasedTargetsinitiative(SBTi).Ørstedranksastheworld’smostsustainableenergycompanyinCorporateKnights’2022indexoftheGlobal100mostsustainablecorporationsTheGlobalWindEnergyCouncil’sGlobalLeadersareanexclusiveleadershipgroupofdecision-makersandtop-tiermemberswhoformthebasisoftheAssociation’sExecutiveCommittee,whichdrivestheworkprogrammeandplaysamajorroleinshapingGWEC’sprioritiesforitseffortsintheshortandlong-termstrategy.GWECGlobalLeadersintheworldandisrecognisedontheCDPClimateChangeAListasagloballeaderonclimateaction.MainstreamRenewablePowerMainstreamRenewablePowerisaleadingpure-playrenewableenergycompany,withwindandsolarassetsacrossglobalmarkets,includinginLatinAmerica,Africa,andAsia-Pacific.Mainstreamisoneofthemostsuccessfuldevelopersofgigawatt-scalerenewablesplatforms,acrossonshorewind,offshorewind,andsolarpowergeneration.Ithassuccessfullydelivered6.5GWofwindandsolargenerationassetstofinancialclose-ready.InMay2021,AkerHorizonsacquireda75%equitystakeinthecompany,acceleratingitsplanstodeliveritshigh-qualitypipelineofover16gigawattsofcleanenergy.MainstreamhasraisedmorethanEUR3.0bninprojectfinancetodateandemploysmorethan420peopleacrossfivecontinents.GERenewableEnergyGERenewableEnergyharnessestheearth’smostabundantresources–thestrengthofthewind,theheatofthesunandtheforceofwater;deliveringgreenelectronstopowertheworld’sbiggesteconomiesandthemostremotecommunities.Withaninnovativespiritandanentrepreneurialmindset,weengineerenergyproducts,gridsolutionsanddigitalservicesthatcreateindustry-leadingvalueforourcustomersaroundtheworld.IberdrolaWithover170yearsofhistorybehindus,Iberdrolaisnowaglobalenergyleader,thenumberoneproducerofwindpower,andoneoftheworld’sbiggestelectricityutilitiesintermsofmarketcapitalisation.Wehavebroughttheenergytransitionforwardtwodecadestocombatclimatechangeandprovideaclean,reliableandsmartbusinessmodel,tocontinuebuildingtogethereachdayahealthier,moreaccessibleenergymodel,basedonelectricityVestasVestasistheenergyindustry’sglobalpartneronsustainableenergysolutions.Wedesign,manufacture,install,andservicewindturbinesacrosstheglobe,andwith+151GWofwindturbinesin86countries,wehaveinstalledmorewindpowerthananyoneelse.Throughourindustry-leadingsmartdatacapabilitiesand+129GWofwindturbinesunderservice,weusedatatointerpret,forecast,andexploitwindresourcesanddeliverbest-in-classwindpowersolutions.Togetherwithourcustomers,Vestas’morethan29,000employeesarebringingtheworldsustainableenergysolutionstopowerabrightfuture.113GWECGLOBALOFFSHOREWINDREPORT2023EquinorWearelookingfornewwaystoutiliseourexpertiseintheenergyindustry,exploringopportunitiesinnewenergyanddrivinginnovationinoilandgasaroundtheworld.Weknowthatthefuturehastobelowcarbon.Ourambitionistobetheworld’smostcarbon-efficientoilandgasproducer,aswellasdrivinginnovationinoffshorewindandrenewables.Weplantoreachaninstallednetcapacityof12-16GWfromrenewablesby2030,two-thirdsofthiswillbefromoffshorewind.Withfivedecadesofoceanengineeringandprojectmanagementexpertise,focusonsafeandefficientoperations,indepthknowledgeoftheenergymarkets,skilledpersonnelandanetworkofcompetentpartnersandsuppliers,Equinorisuniquelypositionedtotakealeadingroleintheoffshorewindindustry.Frombuildingtheworld’sfirstfloatingwindfarmtobuildingtheworld’sbiggestoffshorewindfarmwearewellunderwaytodeliverprofitablegrowthinrenewablesbealeadingcompanyintheenergytransition.CorioCorioGenerationisaspecialistoffshorewindbusinessdedicatedtoharnessingrenewableenergyworldwide.Our20+GWdevelopmentportfolioisoneofthelargestintheworld,spanningestablishedandemergingmarkets,aswellasfloatingandfixed-bottomtechnologies.Withourleadingindustrialexpertiseanddeepaccesstolong-termcapital,weworkcloselywithourpartnersinthecreationandmanagementofprojectsfromorigination,developmentandconstruction,andintooperations.CorioGenerationisaGreenInvestmentGroup(GIG)portfoliocompany,operatingonastandalonebasis.GIGisaspecialistgreeninvestorwithinMacquarieAssetManagement,partofMacquarieGroup.CIPFoundedin2012,CopenhagenInfrastructurePartnersP/S(CIP)todayistheworld’slargestdedicatedfundmanagerwithingreenfieldrenewableenergyinvestmentsandagloballeaderinoffshorewind.ThefundsmanagedbyCIPfocusesoninvestmentsinoffshoreandonshorewind,solarPV,biomassandenergy-from-waste,transmissionanddistribution,reservecapacity,storage,advancedbioenergy,andPower-to-X.CIPmanagestenfundsandhastodateraisedapproximatelyEUR19billionforinvestmentsinenergyandassociatedinfrastructurefrommorethan140internationalinstitutionalinvestors.CIPhasapproximately400employeesand11officesaroundtheworldSSESSERenewablesisaleadingdeveloperandoperatorofrenewableenergy,headquarteredintheUKandIreland,withagrowingpresenceinternationally.Itsstrategyistoleadthetransitiontoanetzerofuturethroughtheworld-classdevelopment,constructionandoperationofrenewablepowerassetsanditisbuildingmoreoffshorewindenergythananyothercompanyintheworld.PartoftheFTSE-listedSSEplc,SSERenewablesistakingactiontodoubleitsinstalledrenewableenergycapacityto8GWby2026aspartofitsNetZeroAccelerationProgramme,andincreaserenewablesoutputfivefoldtoover50TWhannuallyby2031.ReNewReNewistheleadingdecarbonisationsolutionscompanylistedonNasdaq(Nasdaq:RNW,RNWWW).ReNew’scleanenergyportfolioof~13.4GWsonagrossbasisasofDecember31,2022,isoneofthelargestglobally.InadditiontobeingamajorindependentpowerproducerinIndia,weprovideend-to-endsolutionsinajustandinclusivemannerintheareasofcleanenergy,greenhydrogen,value-addedenergyofferingsthroughdigitalization,storage,andcarbonmarketsthatincreasinglyareintegraltoaddressingclimatechange.EnvisionEnvisionGroupisaworld-leadinggreentechnologycompanyandnetzerotechnologypartner.Withthemissionof“solvingthechallengesforthesustainablefutureofhumankind”.Envisiondesigns,sells,andoperatessmartwindturbines,smartstoragesystemandgreenhydrogensolutions.Itcontinuestopromotewindandsolarpowerasthe“newcoal”,batteriesandhydrogenfuelasthe“newoil”,theAIoTnetworkasthe“newgrid”,thenet-zeroindustrialparkstothe“newinfrastructure”,andtopromotetheconstructionandcultivationofgreen“newindustry”.EnvisionGroupwasrankedamongtheTop10ofthe2019‘World’s50SmartestCompanies’bytheMITTechnologyReview.InOctober2021,EnvisionwasrankedsecondintheworldontheFortune“ChangetheWorld”list.EnvisionGroupjoinedtheglobal‘RE100’initiativeandbecamethefirstcompanyinmainlandChinacommittedto100%renewableelectricityby2025.GlobalLeadersGWEC.NET114Iberdrolas.ren@iberdrola.esCRUGroupHarryWalford,RegionalDirector-Europe(harry.walford@crugroup.com)LincolnElectricBryanO’Neil,Director,GlobalOffshore&PowerGenerationSegments(Bryan_ONeil@lincolnelectric.com)BureauVeritasStephanCiniselli,GlobalDirectorOffshoreWind(stephan.ciniselli@bureauveritas.com)HartingElectricGuanghaiJin,TeamLeaderIndustrySegmentManagementEnergy(Guanghai.Jin@harting.com)RPSEnergyKarenTurle,StrategicMarketingManager-Energy(karen.turle@rpsgroup.com)AssociateSponsorsSupportingSponsorLeadingSponsor115GWECGLOBALOFFSHOREWINDREPORT2023GWEC.NETGlobalWindEnergyCouncilRuedeCommerce311000Brussels,BelgiumT.+32490568139info@gwec.net@GWECGlobalWind@GlobalWindEnergyCouncil(GWEC)@GlobalWindEnergyCouncilwww.gwec.netGLOBALWINDENERGYCOUNCIL