World Offshore Wind Market Forecast 2013-2022

News provided by

Jan 06, 2014, 02:29 ET

LONDON, Jan. 6, 2014 /PRNewswire/ -- Reportbuyer.com just published a new market research report:

World Offshore Wind Market Forecast 2013-2022

Offshore wind spending set to average almost €15 billion per year over the next ten years

Douglas-Westwood forecast offshore wind installations averaging 3.2 GW per year over the next ten years with capital expenditure hitting a peak of ?18bn in 2016. This report presents a new longer-term forecast and examines the key commercial developments since the last publication to provide detailed insight to established players and new entrant alike.

The increase in turbine capacity is considered to be one of the key factors for reducing the cost of energy, and European offshore wind developers will be specifying larger wind turbines with capacities of 5MW or greater. The size of the components for these future wind turbines will create unique challenges for installers, foundation designers and service providers.

As the industry seeks to reduce costs, a new generation of wind turbines designed around the unique requirements of the offshore environment are being rolled out with European project developers increasingly choosing to specify larger models with power outputs of 5 MW or more. The size of the components for these future wind turbines creates a unique set of challenges for installers, foundation designers and service providers.

A new manufacturing supply chain focused on the Northern European markets is slowly developing to meet demand with significant investments being made in aspects such as port infrastructure and foundation manufacturing capacity. At the same time, it will be crucial to leverage the experience and additional supply chain capacity from the offshore oil and gas sector.

The report highlights a series of challenges which are acting to constrain development, including the high cost levels in the industry. Capital outlays and recurring operational spending mean that subsidies are required to support development, at a time when the public finances in key markets such as the UK and Germany are squeezed and the consumer is seeing an upward trend in energy prices. This makes it increasingly difficult for governments to justify support, leading to a focus on identifying cost reduction strategies including standardisation of business practices and development of larger wind turbines designed specifically for the offshore environment.

From a financing perspective the risks associated with offshore construction, new wind turbine technology and offshore operations have made it difficult for project developers to tap into new sources of capital. The current dependence on global utilities to self-fund projects is unsustainable in the long-run, leading to a potential funding gap in the future. As larger players continue to enter the market, often from the offshore oil & gas sector, and new wind turbines reliability is proven over a sustained period of time, it is hoped that new investors will become more comfortable with the risk profile.

Table of Contents

1 Summary and Conclusions
• Summary
• Conclusions

2 Drivers and Indicators
• Overview
• Political Drivers
• Economic Drivers
• Low Carbon Energy

3 Offshore Wind Project Development
• Offshore Wind Project Life-Cycle
• Offshore Wind Project Costs Structure
• Capex Phase 1: Planning & Development
• Capex Phase 1: Wind Turbine
• Capex Phase 1: Balance of Plant
• Capex Phase 1: Installation
• Opex Phase
• Capex Phase 2: Decommissioning
• Offshore Wind Supply Chain

4 Commercial Insights
• Project Scale
• Supply Chain
• Supply Chain
• Capital and Life-time Costs
• Risk Profile
• Financing Challenges
• Contracting Strategies
• Industry Challenges
• Technology: Wind Turbines
• Technology: Support Structures
• Key Markets
• Key Markets: UK
• Key Markets: Germany
• Key Markets: Denmark
• Key Markets: Belgium
• Key Markets: Netherlands
• Key Markets: China
• Emerging Markets

5 Market Forecasts
• Methodology
• Added Capacity by Country
• Cumulative Capacity by Country
• Capital Expenditure by Country
• Annual Capital Expenditure by Type
• Operational Expenditure
• Segment Forecasts: Wind Turbines by Country
• Segment Forecasts: Wind Turbines by Size
• Segment Forecasts: Wind Turbines by Manufacturer
• Segment Forecasts: Support Structures
• Segment Forecasts: Cables
• Segment Forecasts: Offshore Substations
• Segment Forecasts: Vessels

6 Appendix
• Data and Text Conventions

Figures and Tables

• Figure 1: Global Offshore Wind Added Capacity by Country, 2013-2022
• Figure 2: Capital Expenditure by Country, 2013-2022
• Figure 3: Drivers for Offshore Wind - Overview
• Figure 4: EU 2020 Targets - Progress to Date
• Figure 5: Renewable Energy Incentive Mechanisms in Key Markets
• Figure 6: Global Primal Energy Demand Growth - Historic
• Figure 7: EU Energy Dependency, 2011
• Figure 8: Global electricity Generation Forecast
• Figure 9: Levelised Cost of Energy - Key Technologies
• Figure 10: Offshore Wind Project Cycle
• Figure 11: Offshore Wind Cost Breakdown by Project Phase - Capex, Opex, Decommissioning
• Figure 12: Offshore Wind Supply Chain Overview
• Figure 13: Projects scale: average project capacity, distance from shore and water depth
• Figure 14: Offshore Wind Capex Drivers
• Figure 15: Offshore Wind Average Project Capex, 2000-2022
• Figure 16: Planning & Development Time Lines, UK
• Figure 17: Size Evolution of Wind Turbines
• Figure 18: Aerogenerator X
• Figure 19: Two-bladed Offshore Wind Turbine
• Figure 20: Types of Floating Foundations
• Figure 21: Offshore Wind Installed Capacity, 2012
• Figure 22: Cumulative Online* Capacity, UK, 2008-2012
• Figure 23: Cumulative Online* Capacity, Germany, 2008-2012
• Figure 24: Cumulative Online* Capacity, Denmark, 2008-2012
• Figure 25: Cumulative Online* Capacity, Belgium, 2008-2012
• Figure 26: Cumulative Online* Capacity, Netherlands, 2008-2012
• Figure 27: Cumulative Online* Capacity,China 2008-2012
• Figure 28: Offshore Wind Projects' Status Methodology
• Figure 29: Offshore Wind Cumulative Capacity Forecast, 2022
• Figure 30: Added Capacity by Country, 2013-2022
• Figure 31: Cumulative Capacity by Country, 2013-2022
• Figure 32: Capital Expenditure by Country, 2013-2022
• Figure 33: Expected Annual Offshore Wind Capex, 2013-2022
• Figure 34: Planning & Development Annual Capex 2013-2022, € millions
• Figure 36: Balance of Plant Annual Capex 2013-2022, € millions
• Figure 35: Wind Turbine Annual Capex 2013-2022, € millions
• Figure 37: Installation Annual Capex 2013-2022, € millions
• Figure 38: Operational Expenditure by Country, 2013-2022
• Figure 39: Wind Turbines Installed by Country, 2013-2022
• Figure 40: Wind Turbines Installed by Size, 2013-2022
• Figure 41: Wind Turbine Installed by Manufacturer, 2013-2022
• Figure 42: Support Structures Installed by Type, 2013-2022
• Figure 43: Total Cable Length Installed by Country, 2013-2022
• Figure 44: Offshore Substations Installed by Country, 2013-2022
• Figure 45: Installation Vessels Required by Type, 2013-2022
• Figure 46: Personnel Transfer Vessels Required, 2013-2022
• Table 1: Support Structures Types Comparison
• Table 2: Support Structures Types Comparison
• Table 3: Contracting strategies
• Table 4: Emerging Markets
• Table 5: Added Capacity by Country, 2013-2022
• Table 6: Cumulative Capacity by Country, 2013-2022
• Table 7: Capital Expenditure by Country, 2013-2022
• Table 8: Operational Expenditure by Country, 2013-2022
• Table 9: Wind Turbine Installed by Country, 2013-2022
• Table 10: Wind Turbine Installed by Size, 2013-2022
• Table 11: Wind Turbine Installed by Manufacturer, 2013-2022
• Table 12: Foundations Installed by Type, 2013-2022
• Table 13: Total Cable Length by Country, 2013-2022
• Table 14: Total Cable Length by Type, 2013-2022
• Table 15: Offshore Substations Length by Country, 2013-2022
• Table 16: Offshore Substations by Type, 2013-2022
• Table 17: Installation Vessels Required by Type, 2013-2022
• Table 18: Personnel Transfer Vessels Required, 2013-2022