Global Floating Wind Industry Reached 270 GW In FY24: IRENA

While still in its infancy, the global floating wind industry reached approximately 270 MW of operational capacity as of 2023. However, the international pipeline indicates a growing interest with 244 GW of new floating wind projects in development.

The latest International Renewable Energy Agency (IRENA) report on offshore wind power highlights its high-capacity factors and increasing competitiveness, positioning it as pivotal in energy transition strategies. The sector has shown significant progress, with an estimated installed capacity reaching 63 GW by 2022, poised to contribute to achieving the 1.5°C climate goal with projections of 494 GW by 2030 and 2,465 GW by 2050.

In 2023, India’s Ministry of New and Renewable Energy (MNRE) unveiled plans to tender 37 GW of offshore wind by 2030, alongside 15 pilot projects. Leveraging its robust supply chain, India ranks as the second-largest market in the Asia-Pacific region for gearbox, blade, and generator manufacturing (GWEC, 2023; Jagdale, 2023). The Ministry aims to auction 7.2 GW of offshore wind capacity in Tamil Nadu during 2024-2025, led by the National Institute of Wind Energy (MNRE, 2024).

Globally, the analysis of offshore wind patent data reveals significant innovation trends. From 2002 to 2022, international patent families (IPFs) initially increased until 2011-2013, declined, and then surged again from 2017 onwards. Notably, 78% of annual IPFs are dedicated to floating solutions, highlighting the industry’s commitment to advancing this technology and accelerating the maturity of the offshore wind sector.

The top five countries in floating offshore wind patenting are the United States, Germany, Denmark, Japan, and China.

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Top Five Countries In Floating Offshore Wind Patenting

The report enlisted the top 10 offshore wind companies, among which companies like Mitsubishi Heavy Industries (Japan), Vestas (Denmark), Siemens Gamesa Renewable Energy A/S (Denmark), and Hitachi (Japan). During 2013-2017, Mitsubishi and Hitachi reportedly directed 67% and 63% of their respective IPFs to floating solutions, whereas SiemensGamesa Renewable Energy A/S dedicated 94% of its IPFs to floating solutions between 2018 and 2022; this provides insights into Europe’s increasing pace to scale up floating offshore wind were placed among the top 10 companies in floating technologies.

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The report projects the current cost-competitiveness of floating wind farms remains relatively high, with their Levelised Cost of Electricity (LCOE) exceeding USD 200 per megawatt-hour (MWh), compared to USD 50 per MWh for fixed-bottom turbines. This disparity is primarily attributed to the smaller scale of existing floating wind farms and the early stage of development in technology and supply chain networks.

However, projections indicate significant cost reductions in the coming years, with LCOE expected to decrease to USD 100 per MWh by the mid-2020s and further to USD 67 per MWh by 2050. Key drivers for enhancing cost competitiveness include the anticipated deployment of larger floating wind farms (with 15-50 turbines, up from the current 3-5 turbines), advancements in technology optimization and standardization of foundation costs, as well as efficiencies in operational expenditures (OPEX).