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Offshore wind capex to be on par with offshore oil & gas greenfield capex

Oil&Gas Materials 30 April 2021 09:57 (UTC +04:00)

BAKU, Azerbaijan, Apr.30

By Leman Zeynalova – Trend:

Offshore wind capex will be on par with offshore oil and gas greenfield capex with the exception of exploration in 2030, Trend reports with reference to Rystad Energy.

The company expects both sectors to have around $100 billion worth investments in 2030.

Rystad Energy estimates the offshore wind industry’s global installed capacity to be more than 250 gigawatts (GW) by 2030 as a result of the implementation of new projects in this sphere.

The combined capital and operational expenditure for the decade is set to add up to $810 billion, which shows an increasing shift of investments from oil and gas to renewable energy technologies.

The cumulative installed capacity of global offshore wind projects climbed to 33 GW in 2020 – a significant achievement for an industry that has nearly tripled its size since 2016. We expect the world’s installed capacity to hit an estimated 109 GW by 2025 and rise further to 251 GW by 2030, growing by 22 percent a year on average.

This massive boost in capacity will involve a steep increase in global spending. Rystad Energy estimates that total expenditure will amount to $56 billion in 2021 as almost 13 GW of capacity is expected to be commissioned, lifting the 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. Capex today accounts for 95 percent of the total expenditure, with opex representing only 5 percent. The capex share is expected to decline to about 80 percent by 2030, as all the new installed capacity will require more operational spending to run and maintain.

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Follow the author on Twitter: @Lyaman_Zeyn

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