The global offshore wind turbine market to grow at a CAGR of 20% during the period 2017-2021.
Global Offshore Wind Turbine Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the new installations and exclude the retrofit/spares market.
The latest trend gaining momentum in the market is Reduction in cost for wind energy. The primary drivers that regulate the cost of electricity from wind energy are capital costs, capacity factor, and operating costs. CAPEX, OPEX, project design, and cost of financing turbine performance are the main drivers that regulate cost reduction for wind energy. Along with the high hub heights, large rotor diameters cubed with large turbines as well as improved operations and financial conditions act as the key factors for wind projects. The drop-in prices for offshore applications are also acting as a driver for the reduction in cost for wind energy. As wind energy prices are extremely competitive, it offers costs that are lower than all other renewable resources, which is in turn driving the market for wind energy worldwide.
According to the report, one of the major drivers for this market is Government support for wind energy projects. Governments worldwide are supporting wind energy projects through favorable policies and tax incentives. One distinguished example of such initiatives is the FiT policy, which was designed to encourage investments in technologies related to renewable energy generation. The Renewable Energy Sources Act 2014 in Germany established fixed FiTs for renewable energy-generating power utilities in the country. The FiT policy covers numerous aspects of the wind energy industry such as bonuses, eligibility, and various other grants. Distinct policies specific to numerous wind energy generation facilities, such as offshore and onshore, are also defined in the policy document.
Further, the report states that one of the major factors hindering the growth of this market is Competition from fossil fuels. According to the U.S. Energy Information Administration, in 2016, the share of renewable energy in global electricity production was 23%. We expect it to increase to 26% by 2020. Fossil fuels that have dominated global power generation since their discovery accounted for around 67% share in 2016. The share of wind power in global electricity production was 3.1% in 2016. Since 2001, the share of wind power in the global energy mix has been increasing steadily. However, the share is still low considering the huge amount of electricity that is generated globally.