Global Offshore Wind is on the Rise: Business Opportunities for the World

By Tina Olivero for TheOGM.com

The global offshore wind industry has experienced a remarkable surge, with capacity growing by 21% since 2023, rising from 61.5 GW to 75 GW. This impressive growth trajectory is set to continue, with the industry projected to reach 277GW by the end of 2030, according to RenewableUK. This rapid expansion not only highlights the potential of offshore wind energy but also presents significant business opportunities worldwide.

The Power of Offshore Wind

The additional 13.5GW of capacity added in the past year alone represents enough electricity to power approximately 14 million homes in the UK year-round. The countries leading this charge are China and the UK, with operational capacities of 36.7GW and 14.7GW, respectively. Other significant contributors include Germany (8.3GW), the Netherlands (3.7GW), and Denmark (2.7GW).

The global pipeline for offshore wind projects, encompassing those that are operational, under construction, consented, in planning, or at an early stage of development, has also seen a substantial increase. It grew to 1,231GW from 1,228GW, with 1,500 projects underway across 41 countries. Although the upward trend is slightly less than in previous years, this is due to developers refining their portfolios and improving leasing methods and consenting projects globally.

Business Opportunities Abound

The offshore wind sector’s robust growth presents numerous business opportunities across various segments of the industry. Here are some key areas ripe for investment and development:

1. Project Development and Construction: With a vast number of projects in the pipeline, there is a significant demand for companies specializing in the development and construction of offshore wind farms. This includes everything from initial site surveys to final installation and commissioning.
2. Supply Chain and Manufacturing: The need for turbines, blades, foundations, and other components is escalating. Companies involved in manufacturing these parts stand to benefit immensely from the expanding market.
3. Technology and Innovation: Innovations in turbine design, floating platforms, and energy storage solutions are critical to enhancing efficiency and reducing costs. Investment in R&D can lead to breakthroughs that will drive the industry forward.
4. Operations and Maintenance: As more offshore wind farms become operational, the demand for services to maintain and optimize these assets will grow. Companies offering maintenance, repair, and operational optimization services will find ample opportunities.
5. Grid Integration and Infrastructure: The integration of offshore wind energy into national grids requires significant upgrades and enhancements to existing infrastructure. There is a need for advanced grid management solutions and new transmission lines to support this influx of renewable energy.

Top 10 Wind Energy Regions in the World

As the offshore wind industry continues to expand, certain regions are emerging as global leaders. Here are the top 10 wind energy regions in the world based on their current and projected capacities:

1. China: Leading the charge with a project pipeline of 227GW, China remains the dominant force in the offshore wind sector.
2. United Kingdom: With 96GW spread across 122 projects, the UK continues to be a global leader in offshore wind energy.
3. United States: The US has a robust pipeline of 94GW, reflecting its commitment to expanding its offshore wind capabilities.
4. Sweden: With a pipeline of 68 GW, Sweden is making significant strides in offshore wind development.
5. Brazil: Brazil’s 61GW pipeline underscores its growing role in the global offshore wind market.
6. Germany: As one of the early adopters, Germany has an operational capacity of 8.3 GW and continues to expand its offshore wind infrastructure.
7. Netherlands: The Netherlands, with 3.7 GW, is leveraging its extensive coastal areas to boost offshore wind capacity.
8. Denmark: Denmark, a pioneer in wind energy, maintains a strong position with 2.7 GW of operational capacity.
9. France: France is actively developing its offshore wind sector, aiming to become a key player in Europe.
10. Taiwan: Taiwan is rapidly expanding its offshore wind capabilities, with several large projects in the pipeline.

Summary of Top 10 Offshore Wind Projects

Offshore wind farms are gaining momentum globally as countries seek clean energy solutions. Recent advancements in technology have made offshore wind farms more attractive by lowering costs and boosting energy output. Europe has been a leader in offshore wind, with countries like the UK, Germany, and Denmark pioneering the industry. However, other regions are catching up fast. Here is a summary of the top 10 offshore wind farms in the world:

1. Walney Wind Farm
   • Capacity: 659 MW
   • Location: Cumbria, UK
   • Commission Date: September 2018
   • Details: Features 87 turbines; jointly owned by Ørsted and Danish pension funds PFA and PKA.
2. London Array Wind Farm
   • Capacity: 630 MW
   • Location: Thames Estuary, UK
   • Commission Date: April 2013
   • Details: Located 20 km off the Kent coast with 175 turbines.
3. Gemini Wind Farm
   • Capacity: 600 MW
   • Location: Netherlands
   • Commission Date: 2017
   • Details: Consists of 150 Siemens turbines; developed by Northland Power.
4. Beatrice Wind Farm
   • Capacity: 588 MW
   • Location: Scotland, UK
   • Commission Date: 2018
   • Details: Joint venture involving SSE Renewables, Copenhagen Infrastructure Partners, and Red Rock Power.
5. Gode Wind Farm
   • Capacity: 582 MW
   • Location: North Sea, Germany
   • Commission Date: June 2017
   • Details: Developed in three phases with Siemens 6 MW turbines.
6. Gwynt y Môr Wind Farm
   • Capacity: 576 MW
   • Location: Wales, UK
   • Commission Date: June 2015
   • Details: Features 160 Siemens turbines; owned by multiple stakeholders including RWE Npower.
7. Race Bank Wind Farm
   • Capacity: 573 MW
   • Location: England, UK
   • Commission Date: February 2018
   • Details: Features 91 Siemens turbines; owned by Ørsted and other investors.
8. Greater Gabbard Wind Farm
   • Capacity: 504 MW
   • Location: England, UK
   • Commission Date: 2012
   • Details: Located near the North Sea, developed by Airtricity and Fluor.
9. Horns Rev 3
   • Capacity: 406.7 MW
   • Location: Denmark
   • Commission Date: 2019
   • Details: Developed by Vattenfall, located in the North Sea with 49 MHI Vestas turbines.
10. Dudgeon Offshore Wind Farm
    • Capacity: 402 MW
    • Location: England, UK
    • Commission Date: October 2017
    • Details: Features 67 Siemens turbines; originally developed by Warwick Energy Limited.

Dan McGrail, CEO of RenewableUK, remarked on the industry’s achievements, stating, “It’s great to see we’ve reached a landmark 75GW of offshore wind operational worldwide, with the UK maintaining its place as a global leader in an intensely competitive international market.” This sentiment reflects the broader optimism within the industry and underscores the competitive nature of the global offshore wind market.

The offshore wind industry is on an unprecedented growth trajectory, offering vast business opportunities across development, supply chain, technology, operations, and infrastructure. As countries around the world continue to invest in and prioritize renewable energy, offshore wind is set to play a pivotal role in meeting global energy demands sustainably. The top wind energy regions are leading the charge, but the entire world stands to benefit from the continued expansion and innovation within this dynamic sector.