Opportunities for offshore wind investment are growing globally. In the more established northern European markets, many new projects continue to be developed. Increasingly, capital is being recycled and reinvested into new developments, creating a strong secondary market alongside new build opportunities.
New markets are also emerging; in the Americas, the industry is building momentum on the East Coast of the USA, and new frontiers are coming forwards on the West Coast and in Canada. The Asia Pacific region also has great potential, with governments setting ambitious targets in markets such as Taiwan, Japan and South Korea, and development beginning in newer markets such as Australia.
The levelized cost of energy of offshore wind projects is reducing overall, particularly as turbine sizes increase. However, bigger turbines bring greater complexity, both in terms of foundation solutions and the need for specialists in the supply chain. Costs also increase as projects are located further from shore and in the deeper waters, although potential mitigants include the commercialisation of floating turbines and emergence of other new technologies to facilitate and increase the efficiency of offshore maintenance. With increasing competitive pressure on projects, further cost reductions will be needed, but these also depend on deal-flow in order for the supply chain to continue to develop.
It is clear that investment in offshore wind is no longer a matter of public policy but is driven by economic returns. The opportunities are global, but will require local delivery. Our global team will keep you up to date on the latest developments in the sector.
To help our clients stay up-to-date with the latest developments and trends, we have created an Offshore wind hub as part of our NRF Institute, consolidating insights, publications and events from our global Offshore wind team.
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