2021 Best Year Ever With 21.1 GW Expansion For Offshore Wind, Says GWEC

The latest Global Offshore Wind Report by the Global Wind Energy Council (GWEC) asserts that the offshore wind industry enjoyed its best-ever year in 2021, with 21.1 GW of new capacity connected to the grid. The launch of the report would also coincide with the United Nations Ocean Conference in Lisbon.

The report stated that the offshore wind industry is preparing for a new era of dramatic growth as governments turn to the technology and establish ambitious new net zero targets. The implementation of these upgraded targets should start to deliver yet more record-breaking years from 2025 onwards. Importantly, unlike the previous concentration in Europe and North America, the new push is broader, with installations across the world, especially China and later, India possibly.

The governments are getting more ambitious about offshore wind and GWEC Market Intelligence revises up its outlook for 2030 by 45.3 GW and believes that 260 GW of new offshore wind capacity could be added in 2022-2030.

Ben Backwell, CEO, GWEC, said, “Governments across the world are now recognising the once in a lifetime opportunity that offshore wind represents to deliver secure, affordable and clean energy while fostering industrial development and job creation. Now we need to work to rapidly implement targets and ambitions, while building a health and ‘fit for growth’ global supply chain.”

He also said that the wind industry needs to take its place as a key custodian of a healthy Ocean ecosystem, as it becomes one of the world’s most important marine-based industries. “Working together we can deliver a clean and secure energy system that delivers power while helping the world reach net zero,” he said.

The report held that the energy crisis and the Russian – Ukraine war has seen governments further raise their offshore wind targets as they look to secure their energy supplies. The government targets will take the world to around 370 GW of capacity by 2031.

The document also mentioned that it is essential that governments and the private sector work together to ensure the existence of a well-functioning global supply chain that is able to scale up rapidly over the next decade to meet growth.

Ulrik Stridbaek, Vice President, Head of Regulatory Affairs, Orsted, stated, “The global offshore wind industry is at a critical inflection point. On one hand, we see political ambitions increase exponentially. But on the other hand, the industry is facing increasing costs and disrupted supply chains, jeopardising its long term ability to realise these targets.

Martand Shardul, Policy Director, GWEC India, commented on the India specific developments with regards to wind power. He said, “India’s offshore wind potential and the government’s enthusiasm, which is evident from the recently announced 37 GW tender trajectory, must be juxtaposed with relevant standards, regulatory frameworks, and innovative financial instruments to safeguard investments, mitigate any possible project risks and thereby drive the participation of industry leaders in tender and project implementation.”

Shardul also held that with the 37 GW offshore wind trajectory announced by the MNRE and the likelihood of the first tender notification in the coming months, Tamil Nadu and Gujarat must gear up to put in place the necessary financial and non-financial incentives to drive investments and thereby ensure the timely availability of port, logistics, and supply chain resources to project developers.