Offshore Wind Update: Total Capex Forecast at €402bn over 2017-2026

16 1DouglasWestwood WestwoodInsightlogoWestwood’s most recent edition of the Word Offshore Wind Market Forecast is now available. The report features a restructured market forecast, splitting global Capex into planning and development, hardware and installation expenditure, together totalling €402bn over the 2017-2026 period.

Key Conclusions:

  • Total Capex is projected at €402bn over 2017-2026.
  • Global cumulative capacity is forecast to grow from 16.4 GW in 2017 to 94.0 GW by 2026*.
  • The UK, China and Germany are the three largest contributors to total capacity additions.
  • Capex across the UK, China and Germany is forecast at €217bn, accounting for approximately 54% of total global expenditure*.
  • Opex is expected to amount to €68bn, with nearly 70% of this expected to be spent across the UK, Germany and China*.
  • Global hardware Capex is expected to total €288.0bn versus installation Capex at €88.6bn and planning & development at €25.6 over the 2017-2026 period*.

*All figures are inclusive of projects yet to develop past conceptual phases.

16 2DW OffshoreWind Capital Expenditure by Country 2016 2026

Since the 2016 edition of this report, the offshore wind industry has experienced a number of changes, which include the evolution in turbine size, growth in project scale, supply chain consolidation and cost efficiencies. In 2016 the industry saw the installation of the very first US offshore wind farm, whilst in 2017 the UK announced the achievement of its 2020 levelised cost of electricity (LCoE) target 4 years ahead of schedule. As the market is becoming less reliant on government subsidies, DONG Energy and EnBW have won the first zero-subsidy bids in German auctions.

Westwood’s new report now features global project listings and a more in-depth Capex analysis – including component breakdown – and country-specific commentary, reflecting on announced renewables obligations. Tracking the industry on a project by project basis, Westwood offers a comprehensive view on the significant opportunities for the wind supply chain over the next decade. Given the increased focus on renewables, the industry will continue to attract investment from utilities, large engineering and service contractors, as well as upstream oil and gas companies.

This report is therefore a must have for vessel contractors, OEMs, design companies and private sector investors.

Report Contents:

  • Key Drivers and Indicators
  • Project Development and Commercial Insights
  • Global to Country Capex and Opex Market Forecasts
  • Segment Market Forecasts
  • Project Listings