AICPA SOC Service Organizations - Certrec

The Rising Trend of Offshore Wind Farms and Their Global Impact

The Rising Trend of Offshore Wind Farms and Their Global Impact - Featured Image - Certrec

The emergence of offshore wind farms is reshaping the global energy landscape, offering a promising solution to our growing energy needs. As these renewable energy sources gain momentum, they’re not just revolutionizing but are also making significant strides in attaining sustainable development goals, and environmental sustainability.

With an offshore wind farm assured to play a significant role in our energy future, understanding their global impact and technological advancements becomes crucial. In this blog, we’ll discuss the trend of offshore wind farms thoroughly.

Global Growth of Offshore Wind

  • This year, the global offshore wind market is expected to trespass the massive growth limit. According to the offshore wind market report 2023, the total global offshore wind power capacity is targeting 3 GW, having a year-on-year growth of 16%, coupled with 7% of global offshore wind installations. This report shows a massive increase as compared to the offshore wind market report 2022 edition.
  • By 2030, the global offshore wind capacity is expected to reach 271 GW, with 14 GW of floating wind power installed or under construction. This growth is driven by increasing renewable energy uptake, supported by policies focused on energy transition, environmental protection, and energy security.
  • Over the next decade, an estimated 380 GW of offshore wind capacity is expected to be added across 32 markets. This growth signifies a major step towards renewable energy on a global scale, with an offshore wind turbine to provide large-scale, clean electricity in every continent and increase renewable energy investment opportunities.

Paradigm Shift of Onshore Wind to Offshore

While onshore wind has been a primary foundation in renewable energy, offshore wind offers greater efficiency due to consistent, and more robust winds.  Onshore wind plays a vital role in the wind market significantly, but advances in technology and growing global investment are driving this global trend. This positions offshore wind as a key player in the renewable energy market’s expansion.

The Rising Trend of Offshore Wind Farms and Their Global Impact - Internal Image - Certrec

Global Impact of Rising Offshore Wind Farms

Listed below are the factors that are impacted by the trend of offshore wind farms.

  • Market Expansion

The offshore wind energy sector is witnessing rapid growth, primarily driven by the increasing demand for high-performance applications. Technological advancements and the use of improved materials in manufacturing are key factors boosting the demand for offshore wind farms.

  • Development of Floating Wind Farms

There is an increased focus on developing floating wind farms, with most expected to be commissioned after 2030. Floating wind constitutes a significant portion of current wind energy leases, with a total capacity of 54.9 GW awarded in 2022. This technology expands the potential geographic range for offshore wind farms, opening up vast areas of the ocean previously inaccessible for wind energy generation.

  • Enhancing the Environment with Offshore Windfarms

An offshore wind farm is an emerging trend to enhance the environment. At the global level, projects have demonstrated how an offshore wind turbine can cost-efficiently improve environmental conditions. Dogger Bank Wind Farm, the world’s largest offshore wind farm significantly contributes to this trend, showcasing a model for environmental enhancement through renewable energy.

  • Decarbonizing Oil and Gas

The offshore wind segment is revolutionizing the decarbonization of offshore oil and gas operations. Key 2022 developments and anticipated 2023 projects, like Crown Estate Scotland’s INTOG and Norway’s Hywind Tampen, showcase this integration’s potential to reduce carbon emissions.

Market Forecast and Dynamics

The global offshore wind market is expected to grow at a CAGR of 12% from 2023 to 2030. The increasing demand for renewable energy, governmental initiatives, and technological advancements in wind energy drive this growth. Offshore wind installation capacity is projected to grow significantly, quadrupling from 8.8 GW in 2022 to surpass 60 GW by 2032.

Due to this immense growth, key market players focus on innovative technologies and strategic partnerships to enhance wind farm productivity. The market dynamics reflect a strong shift towards sustainable energy, with floating structures and turbine components significantly contributing to this growth. The exhibition for offshore wind power 2023 discussed this broader aspect of stakeholders.

Final Words

Offshore wind farms are expanding not just in capacity but also in technological innovation, marking a transformative era in global energy dynamics and signifying a shift in the global energy landscape. This growth is propelled by increasing renewable energy adoption, supported by policies focusing on energy transition, environmental protection, and energy security.

Disclaimer: Any opinions expressed in this blog do not necessarily reflect the opinions of Certrec. This content is meant for informational purposes only.