BAKU, Azerbaijan, June 18. The demand for offshore substations is skyrocketing, particularly in Europe, says Rystad Energy, an independent energy research and business intelligence company from Norway, Trend reports.
Their research indicates that 137 substations will be installed across continental Europe this decade, requiring a total investment of $20 billion. Over 120 of these installations are slated for 2024-2030, at an estimated cost of $18 billion. Consequently, annual spending on offshore substations is projected to rise from an average of $1.4 billion per year (2015-2023) to $8.4 billion in 2030.
Rystad Energy further explains that offshore substations, which collect power generated by wind turbines, increase the operating voltage, and transmit the power to shore. These substations are equipped with essential electrical systems, including switchgears, transformers/converters, reactive power compensation systems, and earthing systems. They are particularly advantageous for projects exceeding 200 MW in capacity and located more than 15 kilometers from shore, as they help minimize power transmission losses. Additionally, offshore substations are valuable for other energy projects, such as electrifying offshore oil and gas production platforms.
The surge in substation developments is driven by the expanding scale and distance of offshore wind projects. Projects exceeding 1 GW of capacity require multiple substations. Many European countries have set ambitious offshore wind installation targets, transforming the continent into a hub for substation activity.
As such, Europe is expected to install eight new offshore substations in 2024, double the number installed last year. This year, new offshore substations will primarily support wind projects within 50 kilometers of the coast. However, later in the decade, an increase in offshore wind installations beyond the 50-kilometer mark is anticipated, further boosting the demand for offshore substations.
Offshore substation topsides can be substantial in size and are significantly heavier than wind turbines. Of the nearly 100 offshore substations installed in Europe between 2014 and 2016, jackets accounted for approximately 70 percent of foundations, while monopiles constituted less than a quarter. Some foundation concepts for substations planned for 2025 and 2026 remain unspecified in Rystad Energy's research, reflecting the evolving nature of offshore wind infrastructure.