Offshore Wind Power Emerges Out of Shadows By Junaid Shah/ Updated On Tue, Jul 30th, 2024 Highlights : Global offshore wind energy capacity is expected to increase 15-fold by 2040, attracting around USD 1 trillion in cumulative investment India aims to install 37 GW for offshore wind energy by 2029-30 The world of renewable energy is diverse, including solar, hydroelectric, geothermal, and biomass. Among these, wind power is among the most efficient and scalable clean energy sources. Offshore wind energy farms promise higher energy yields and are far from residential areas, reducing noise and visual impact. As technology advances and costs drop, offshore wind power is becoming a cornerstone of global renewable energy. Technological Advancements in Offshore Wind Power Recent advancements in offshore wind energy technology have significantly addressed previous limitations, leading to increased penetration and efficiency of wind energy. Historically, challenges such as high costs, limited turbine efficiency, and maintenance issues hampered the widespread adoption of offshore wind power. However, new technologies have helped address many of these problems as follows: Taller Turbines and Larger Blades Earlier wind turbine generators (WTGs) were limited by their height and blade length, restricting their ability to capture wind energy efficiently. Modern turbines are now taller and feature larger blades, allowing them to harness more wind energy. GE’s Haliade-X turbine is an example of a taller turbine with large blades. It boasts a 14 MW capacity, stands over 260 meters tall, and has 107-meter blades. These upgrades mean more energy output and lower costs. Installed at the Dogger Bank Wind Farm, this powerhouse is expected to supply electricity to up to 6 million homes each year. It’s a big step towards achieving Net Zero emissions. Floating Wind Farms Traditional fixed-bottom turbines were restricted to shallow waters, limiting their deployment and the amount of energy they could harness. A transformative innovation in the sector is the development of floating wind farms. These can be installed in deeper waters where wind speeds are higher and more consistent. Will Europe Give In To Rising Dominance of China in Global Wind Energy? Also Read The Hywind Scotland project, the world’s first floating wind farm, showcases impressive performance metrics and expands the geographical reach of offshore wind. These floating farms have addressed the issue of geographical limitations, enabling the use of vast ocean areas previously unsuitable for wind energy projects. 5 Key Points for India on the Road to 300 GW Solar by 2030 Also Read Global weighted average and range of total installed costs, capacity factors and LCOE for offshore wind, 2010-2022 – IRENA Renewable Power Generation Costs in 2022, these technology improvements along with the growing maturity of the entire offshore wind energy farm industry, have resulted in a 59% decline in the weighted average levelized cost of offshore wind from 2010 to 2022, dropping from USD 0.197 per kilowatt-hour (kWh) to USD 0.081/kWh. In 2021 alone, this cost fell 13% year-on-year, although in 2022, a 2% increase was observed. Advanced Materials and Manufacturing Techniques Earlier turbines were often made of heavy materials and were susceptible to environmental wear and tear. The use of advanced materials like carbon fiber-reinforced composites and 3D printing has vastly improved turbine durability and efficiency. Siemens Gamesa’s SG 14-222 DD turbine, for example, utilizes these cutting-edge materials, enhancing performance and reducing costs. Installed in the Horns Rev 3 wind farm in Denmark, this turbine illustrates the advanced manufacturing techniques that contribute to better turbine performance and longevity, addressing earlier issues of durability and high maintenance costs. The Top 5: India’s 10 GW Club for RE Developers is Set to Expand Significantly by 2025 Also Read Digitalization and Smart Maintenance Previously, wind farm maintenance was reactive, leading to significant downtime and increased operational costs. Digital technologies such as IoT, AI, and big data analytics are now transforming offshore wind farm operations. The Borssele 1 & 2 offshore wind energy farms in the Netherlands, for example, use digital tools for predictive maintenance. This technology not only enhances reliability but also reduces operational costs by anticipating issues before they cause downtime, ensuring smooth operations, and maximizing energy output. Grid Integration and Energy Storage Efficient grid integration and energy storage are crucial for maximizing the benefits of offshore wind power. In the early days, the inconsistent nature of wind energy posed challenges for grid stability and storage. The North Sea Wind Power Hub project, a collaboration between several European countries, is developing high-voltage direct current (HVDC) systems to transport electricity across long distances. Moreover, battery storage solutions, such as those being tested in the Hornsea Two project in the UK, manage the intermittent nature of wind energy. These advancements ensure that the energy generated is efficiently transmitted and stored, addressing earlier issues of energy wastage and grid integration Trends Shaping Offshore Wind Power Global wind energy has a high momentum of growth worldwide. The offshore sector is a major factor for the upward trend in the growth momentum. The wind industry is entering a new era of accelerated growth, driven by heightened political ambition. This shift is exemplified by the historic COP28 adoption of a target to triple renewable energy by 2030 In 2023, the total offshore wind energy installations reached 117 GW, marking a 50% year-on-year increase from 2022, Global Wind Energy Council’s (GWEC) Global Wind Report 2024 notes. This growth reflects the global momentum, with 54 countries across all continents contributing to new wind power installations. GWEC has adjusted its growth forecast for 2024-2030 upwards by 10%, now projecting 1,210 GW. This optimistic revision is driven by the establishment of national industrial policies in major economies, the accelerating momentum in offshore wind, and promising growth in emerging markets and developing economies. New Installations Outlook 2024-2028: GWEC’s Global Wind Report 2024 Policy Support and Subsidies Strong policy frameworks and financial incentives are important aspects of the growth of offshore wind energy. Many countries offer subsidies, tax credits, and favorable regulatory environments to attract investments. For instance, the European Union aims to increase its offshore wind capacity to 60 GW by 2030 and 300 GW by 2050 as part of its Green Deal. Similarly, the USA plans to achieve 30 GW of offshore wind by 2030 with around $65 billion invested in the project as per the 2024 Offshore Wind Market Report, supported by tax credits and streamlined permitting processes. China is leading the global push for renewable energy, with its offshore wind capacity set to triple to 129 gigawatts by 2030, according to BloombergNEF. The UK is also pushing to quadruple offshore wind to 60 GW by 2030, backed by Contracts for Difference (CfD) schemes. Nations are increasingly recognizing the potential of offshore wind to provide substantial, reliable, and clean energy. International collaboration is playing an important role in this transition. Countries are partnering on joint projects, sharing technological advancements, and aligning regulatory standards to foster a global market for offshore wind. Global Collaboration Expanding offshore wind energy generation is being driven by global cooperation. An example of cross-border cooperation in the industry is the North Sea Wind Power Hub, a historic initiative that links offshore wind turbines in several European nations. Likewise, India is enhancing its offshore wind capabilities with the backing of the EU-funded FOWIND project. In evaluating wind resources and organizing future advances, this project – a partnership between Indian and European entities—is essential. The global shift to renewable energy is accelerated by the sharing of best practices, technology, and expertise through such partnerships. India’s Progress India, with its Long 7600 km coastline, holds great promise for offshore wind energy. Recognizing this potential, the government introduced the “National Offshore Wind Energy Policy” in 2015. The Ministry of New and Renewable Energy (MNRE) oversees the development of offshore wind energy, while the National Institute of Wind Energy (NIWE) in Chennai handles resource assessment, surveys, and demarcation of wind farm blocks. India is targeting a total installed wind energy capacity of 140 GW by 2030, with the Ministry of New and Renewable Energy (MNRE) planning an auction trajectory of 37 GW for offshore wind energy by 2029-30. Apart from this, the National Institute of Wind Energy (NIWE) has identified about 70 GW of offshore wind potential off the coasts of Tamil Nadu and Gujarat. Recognizing this immense opportunity, the government has introduced a Viability Gap Funding (VGF) scheme in the Budget 2024-2025 for offshore wind projects for installing 1,000 MW of offshore wind capacity which will be split evenly between Gujarat and Tamil Nadu. To effectively implement these projects, three distinct models have been proposed by the government of India: Model-A: Government-led sites with prior studies; MNRE will organize bids with Viability Gap Funding (VGF) to ensure a fixed power tariff. Model-B: Developer-led sites with exclusivity; projects are developed without central financial aid, but bids for power procurement might be invited later. Model-C: The developer identifies and studies new sites within the Exclusive Economic Zone (EEZ); the government will conduct bidding for site allocation, giving the original developer a first right of refusal, without central financial assistance. Despite the potential, Offshore wind energy capacity is nonexistent for reasons such as offshore wind projects face high capital costs, roughly four times greater than onshore projects, due to the need for high-maintenance steel structures, underwater transmission networks, and additional port infrastructure. With government support and subsidies, offshore wind tariffs could decrease by 28 to 30 percent, potentially reaching INR 6 to INR 6.50 per kWh, though this is still 80 percent higher than onshore wind tariffs of INR 3.30 to INR 3.40 per kWh. However, the Indian government has set ambitious targets to boost offshore wind capacity. Policies such as the National Offshore Wind Energy Policy provide a robust framework for the development and regulation of offshore wind projects. In addition to policy support, several pilot projects and feasibility studies to explore the potential of offshore wind have been initiated by the Government of India. The FOWIND (Facilitating Offshore Wind in India) project, supported by the European Union, has been instrumental in assessing wind resources and identifying suitable sites. As India charts its course towards a greener tomorrow, the blend of strategic policies and cutting-edge international collaboration may position it to lead in the global offshore wind arena as well. Tags: BloombergNEF, Contracts for Difference (CfD), European Union (EU), Exclusive Economic Zone (EEZ), FOWIND, GE, high-voltage direct current (HVDC) systems, International Energy Agency (IEA), IRENA Renewable Energy Statistics 2023, Ministry for New and Renewable Energy (MNRE, National Institute of Wind Energy (NIWE), North Sea Wind Power Hub project, offshore wind market, Siemens Gamesa, Viability Gap Funding (VGF)