BAKU, Azerbaijan, October 30. The offshore wind sector faced a challenging year, causing delays, economic strain, and policy setbacks for 2030 net-zero goals, Trend reports.
As Søren Lassen, Head of Offshore Wind Research at Wood Mackenzie, writes in his research, nevertheless, the industry is adapting to higher costs, and progressive policies are emerging,
The research noted that NYSERDA awarded 4 GW of offshore wind capacity in New York, marking a crucial step in the US with improved terms, accelerating offshore wind deployment.
Meanwhile, the European Commission's European Wind Power Action Plan focuses on streamlining deployment, financing, and industry engagement.
As Lassen pointed out, these policy changes are crucial as the industry is stronger and more projects are in the pipeline, empowering policymakers to address recent setbacks.
He noted that over 40 GW of offshore wind tenders are set to be awarded in the next 14 months, offering an opportunity for a strong recovery.
According to the WoodMac expert, the focus should be on getting projects online before 2029 and after 2031, with potential adjustments to tender budgets.
"The key question is how much to increase budgets and ceiling prices, depending on project, market, and timing. Historically, awarded prices have been below government ceiling prices, indicating the need for developers to bid higher," he added.