The global wind industry installed 16% more offshore capacity in 2023, marking the second-best year in its history, despite a challenging macroeconomic environment.
The annual report from the Global Wind Energy Council (GWEC) highlights the market’s expansion beyond traditional countries.
Record Installations and Global Capacity
The industry connected 11 gigawatts (GW) of offshore capacity last year, a 24% increase from the previous year, reaching a total capacity of 75.2 GW worldwide by the end of 2023.
China dominated for the sixth consecutive year, installing 6.3 GW in 2023.
Europe also had a record year, with 3.8 GW installed across 11 new wind farms, notably in the Netherlands and the United Kingdom. The report emphasizes Europe’s lead in the emerging floating wind technology.
Asia and Europe Lead in Offshore Wind Capacity
By the end of 2023, Asia and Europe had 41 GW and 34 GW of offshore wind capacity in operation, respectively, making up the majority of global capacity.
Due to immediate obstacles like inflation and rising material costs, GWEC has revised its installation forecasts for 2024-28 downward by 10% compared to last year’s predictions.
However, “governments and developers remain committed to developing offshore wind, and the medium-term market outlook remains decidedly promising,” notes Feng Zhao, GWEC’s lead analyst.
Growth Beyond Traditional Markets
The organization expects over 410 GW of new capacity to be built between 2024 and 2033. However, it estimates that the commercialization of floating wind farms (as opposed to turbines fixed to the seabed, the current technology) is unlikely to occur before the end of this decade, with around 8.5 GW expected by 2030.
“The growth of offshore wind is now much more than a European, Asian, or American story,” adds Rebecca Williams, GWEC’s Head of Offshore Strategy, citing the rise of several countries.
New Markets Emerge in Asia and Europe
“Japan, South Korea, Australia, the Philippines, Brazil, and Colombia are now taking decisive action to build a complete industry,” she emphasizes, mentioning the awarding of a first wind farm in Australia and pointing to “a new wave of markets in Europe, around the North Sea, the Baltic, and the Mediterranean. Poland sees it as a way to stimulate industrial growth, while Ireland has defined an ambitious development framework.”