The global offshore wind energy market will enjoy rapid growth over the next seven years, led by the deployment of a new fleet of offshore wind farms in British waters.
That is the conclusion of a new report from analyst firm GlobalData, which predicts global offshore wind capacity will grow from 5.5GW in 2012 to 51.2GW by the end of the decade, largely as a result of the UK’s plans for new offshore wind farms.
As a result, the sector is expected to enjoy a compound annual growth rate (CAGR) of 32.3 per cent between 2012 and 2013.
The UK is expected to retain its leadership position in the offshore wind market, but GlobalData’s projections imply other countries will start to expand their offshore wind capacity.
The UK’s offshore wind industry is aiming to deliver around 18GW of capacity by 2020 through the development of the next wave of so-called Round 3 projects. But Germany, France, South Korea, China and the US are among those pursuing plans for new offshore wind farms.
The report also predicts China will remain the world’s largest wind energy market for the rest of this decade, despite evidence that it may struggle to maintain its previously stellar growth rates.
The report details how Chinese wind energy capacity has more than doubled each year for most of the past six years, delivering a CAGR of 76 per cent between 2006 and 2012.
“Supportive government policies that include an attractive concessional programme and the availability of low-cost financing from government banks are the main reasons for the growing wind power market in China,” said Swati Singh, GlobalData’s power sector analyst, in a statement. “However, the growth rate will slow down in the forecast period due to insufficient infrastructure, low-quality wind turbines and questionable pricing policies.”
The report comes in the same week as Chinese authorities reported they are on track to open the world’s highest wind farm at a site in Tibet. The new 15MW development from Longyuan Power is sited in Nagqu Prefecture and is expected to be connected to the grid by the end of the year.
Source: Business Green