Global offshore wind installations will hit 165GW by the end of the decade and are on track to reach 418GW by 2040, according to new research by UK analysts Rethink Energy.
The global expansion of offshore wind will see the technology provide 5% of global electricity in two decades, as installed capacity balloons from the 25GW installed worldwide today.
The report predicts this growth will require some $1.3 trillion in investment and create 8 million jobs.
Rethink said the Asia Pacific region is on track to overtake Europe as the largest market for new installations within the 2020s and China is set to take over from the UK as the country with the most installed capacity by 2026.
US installations are however likely to continue to lag behind those in Europe and Asia over the next decade.
The report’s authors highlighted “conflicting politics, as well as its lack of maritime and transmission readiness,” for slow growth.
Transmission was singled out as a key challenge that needs to be met to ensure the progress of the sector in global markets.
“The emergence of trans-boundary grids in territory groupings, such as the EU, will also be a key enabler and will have to happen first, before everywhere gets the full benefit,” the report said.
The emergence of floating wind is set to play a big role in boosting the rate of new capacity added beyond 2030.
“There will be a second coming, as more and more floating wind turbines are added to the mix, driving a growth in offshore wind greater than many analysts expect,” the report said
Its authors predict the LCOE of floating wind will reach “a competitive level” between 2028 and 2030, but said the growth of floating installations in the near-term will likely be dogged by consenting problems.
“Environmental issues will plague the steadfast emergence of this massive industry and act like a lead weight around its immediate progress,” researchers found.