This massive boost in capacity will involve a steep increase in global spending, Rystad Energy said.
The analyst estimates that total expenditure will amount to $56 billion this year with almost 13 GW of new capacity to be commissioned, resulting in a cumulative global installed capacity to 46 GW.
Yearly spending will continue to rise to $126 billion in 2030, after a short-lived dip in 2022 and 2023.
Rystad Energy states:
- In fact, 2030 will be the year of the inflection point when offshore wind capex will be on par with offshore oil and gas greenfield capex (excl. exploration work), at about $100 billion
China dominated annual spending between 2019 and 2021 due to its substantial annual capacity additions.
This decade, the country is forecast to spend about $110 billion.
Petra Manuel, offshore wind analyst at Rystad Energy, said:
- The colossal level of investments anticipated in the offshore wind industry this decade reflects the ambitious targets set by companies and governments alike
- As the market matures and economies of scale are achieved, investments could surge further, sparking even more installed capacity
Rystad Energy expects North and South America will only start spending substantial amounts on offshore wind in 2023.