Offshore wind capacity will increase almost sixfold over the next 10 years hitting 101GW in 2027 as costs tumble, according to analysis by Wood Mackenzie Power and Renewables.
The research said that the deployment of next-generation turbines will double the average rating of a machine over the next decade with offshore deployment growing to about 18 countries.
This will subdue the growing demand in the balance of plant segments of the industry in terms of the number of units and material per MW, Wood Mackenzie said
For example, monopile foundations will see the weighted average weight per MW decrease by 36% by 2023 in Europe, the company said.
It added that the average installation time per MW for turbine and foundation campaigns has been halved in Europe since 2010 – a trend that is set to continue.
Wood Mackenzie also expects CAPEX and OPEX across Europe will drop, on average, by 36% and 55% respectively by 2027, with the levelised cost of energy dropping to a mean of €53.6 a megawatt-hour from about €107/MWh last year.
“The transmission space is also undergoing holistic innovations where capacities are being increased and materials reduced,” the company said.
Wood Mackenzie Power and Renewables offshore analyst Soren Lassen said: “The proliferation of demand in new markets globalises the European supply chain and motivates the entry of new suppliers.
“This is particularly true when supported by local content policies as the pressures in Europe lead to consolidation across the European supply chain – especially in the installation segments.”
The report added that the high growth rates in the sector makes it increasingly attractive for oil and gas companies looking to leverage their offshore experience.