Global Offshore Wind Market Report – 2Q 2021

The Global Offshore Wind Market Report is a unique outlook on global and regional offshore wind spend and installation activity, mixed with macro overviews, auction and licensing round insights, and contract highlights. Delivered as part of all subscriptions to WindLogix, the market report is delivered on a quarterly basis. Read on below for a short summary of the 2Q highlights.

In the newest quarterly release of the World Offshore Wind Market Forecast, analysis showed that mainland China overtook the UK in 2Q 2021 to become the world’s largest offshore wind market by installed capacity at 11.1GW (vs UK’s 10.4GW), with the Asian powerhouse bringing into full commission 1.44GW of capacity over April-July 2021.

The report highlights that 247MW of capacity was sanctioned this quarter and associated with the Arcadis Ost 1 development offshore Germany, with a further 5.1GW of capacity anticipated to make final commitment over 3Q-4Q 2021. Key upcoming FIDs include the Dogger Bank C, Vineyard Wind 1 and Borkum Riffgrund 3 projects.

Reviewing latest project data reveals that total sanctioned offshore wind capacity this year is currently estimated at 7.4GW. Whilst paling in comparison to the 2020 equivalent of 17GW, the market is currently working through extensive backlogs with offshore construction activity in Mainland China at peak levels so as to secure expiring Federal FiTs. Of the $18.7bn projected to be awarded in 2021, approximately 60% has yet to be awarded.

Westwood’s report features an in-depth Capex analysis, including a 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 and large engineering and service contractors, as well as upstream oil and gas companies.