The UK and Germany are expected to drive growth in the global offshore wind energy market over the next decade, according to a new report. Analysis by Douglas-Westwood indicates that spending in the offshore wind sector will average €15 billion per annum as an average 3.2 GW of capacity is added to the grid each year. Spending will peak in 2016 at €18 billion, says the firm in its World Offshore Wind Market Forecast.
"For many countries, including the UK and Germany, offshore wind is a key component in the future electricity generation mix," commented report author Dmitry Dovgan. "To date, the UK market has been the main driver of growth, with many important lessons learned along the way. At the current time, we see increasing activity in Germany with a large amount of new capacity set to come online in the near future."
The report highlights a series of challenging issues that are acting to constrain development, including the high cost levels in the industry and financing constraints. These are leading the industry to focus on cost reduction strategies, but also to continue self-funding, a strategy that is not sustainable in the long term, says Douglas-Westwood.
New investors are expected to enter the market as wind turbine technology is proven over a sustained period of time and as players from the offshore oil and gas sector become increasingly involved in the sector.
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