BAKU, Azerbaijan, October 28. The European offshore wind industry has experienced a modest 2-percent annual growth in installations in 2023, Rystad Energy, an independent energy research and business intelligence company from Norway, said, Trend reports.
However, while offshore wind was on a promising trajectory, a recent wave of project delays in the UK and Denmark has exposed vulnerabilities in the market, the company noted. Over the past two months, developers and governments have announced delays or potential project cancellations, citing rising development costs, challenges in securing favorable offtake agreements, and regulatory shifts.
Consequently, both the UK and Denmark are expected to fall further behind their 2030 offshore wind targets than previously projected. For instance, the UK is now forecasted to achieve a maximum of 46.8 GW of offshore wind capacity by 2030, missing its governmental target of 50 GW. Similarly, Denmark is anticipated to reach slightly over 10 GW, below its goal of 12 GW.
Despite these hurdles, the offshore wind industry remains resilient, underscoring its long-term potential, Rystad Energy pointed out. France, a relatively new entrant in this field, has made a notable impact with the commissioning of its inaugural offshore wind facilities, Saint-Brieuc and Fecamp. Furthermore, the sector achieved a significant technological leap with the launch of Equinor's 88-MW Hywind Tampen, the world's largest floating offshore wind farm, off the coast of Norway.
As Rystad Energy noted, achieving offshore wind growth trajectory will necessitate substantial changes in project development and permitting procedures, alongside ongoing investments in research and development to ensure cost-effectiveness and efficiency.
Given the sector's potential to drive decarbonization and economic growth, there is a strong incentive to overcome these challenges, the company added.