Sharp offshore wind slowdown – but WFO flags shift to 'more evolved' industry
Less new offshore wind capacity was installed in the first half of 2023 but headwinds can offer route to a new business model
The amount of new offshore wind capacity installed globally in the first half of 2023 was 18% lower than last year, despite continued strong growth in China, according to the latest report by World Forum Offshore Wind (WFO)
Globally, 5.6GW of capacity went into operation in the first six months of 2023, compared to 6.8GW of new installations in the first half of 2022, said the offshore wind body.
The 2.2GW of new offshore wind capacity installed by China was also down from the stellar 5.1GW of capacity that China put into operation in the first half of last year.
The WFO report stated that global installed capacity reached a total 63.2GW by the end of June, with 15 new offshore wind farms entering into operation during the first half of 2023 of which 10 were installed in Asia and five in Europe.
China expanded its position as the world’s largest offshore wind market with 28.7GW of installed capacity. It is followed by the UK (14.7GW), Germany (8.3GW) and the Netherlands (4.5GW).
The WFO report said 45% of the world’s total offshore wind capacity is now installed in China.
Looking at offshore wind farms under construction, China and Taiwan lead the way, with 2.5GW and 2.4GW of capacity under construction respectively.
The UK is in third place with 1.7GW under construction followed by France with 1.1GW.
WFO managing director Gunnar Herzig stated: “Global offshore wind growth slowed down during (the first half of) 2023. Not only do we see less new capacity installed…but also a reduction in construction activities.”
WFO is a global business platform for the offshore wind industry, and data was compiled with support from Westwood Global Energy Group
The report noted that rising costs and the resulting project delays and cancellations have not yet impacted apparently robust seabed leasing activity and longer term project pipeline.
The report referred to Westwood Energy’s own predictions about a coming period of rationalisation along the value chain, possibly leading to a more evolved offshore wind model.
“We remain cautiously optimistic about our outlook as the industry remains invested even whilst navigating these new risks,” the WFO report stated.
In the OEM sector, the WFO report showed 11.8GW worth of turbine contracts awarded in HY 1 2023, with Siemens Gamesa bagging 36% of the total.
China's Ming Yang Smart Energy (MYSE) came in second with over 1.2GW of orders, whilst Vestas came a close third place with just under 1.2GW worth of contract wins in the first half of 2023.
Data from 2018 to mid-2023 showed Siemens Gamesa leads with a market share of 26%, followed by MYSE (14%) and Vestas (9%).
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