• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 6 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 1 day Did China cherry-pick the factors that affected the economic slow-down?
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 7 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 hours Are you aware of Oil Price short videos on our energy topics?
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 10 hours NordStream2
  • 4 days Nord Stream - US/German consultations
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 3 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
Can The U.S. Keep Its Wind Energy Boom Alive?

Can The U.S. Keep Its Wind Energy Boom Alive?

Wind energy installation exploded in…

Is South Korea’s Monster Wind Farm Feasible?

Is South Korea’s Monster Wind Farm Feasible?

In February 2021 the South…

Wind Energy Installation Breaks Records In Pandemic Year 2020

Wind Energy Installation Breaks Records In Pandemic Year 2020

The pandemic didn’t deter booming…

Rystad Energy

Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products. Rystad Energy’s…

More Info

Premium Content

Offshore Wind To See Spending Explode To $810 Billion This Decade

The offshore wind industry’s global installed capacity is set to exceed 250 gigawatts (GW) by 2030, driven by a surge in coming projects, a Rystad Energy report shows. The combined capital and operational expenditure for the decade is set to add up to an eye-popping $810 billion, signaling 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% 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% of the total expenditure, with opex representing only 5%. The capex share is expected to decline to about 80% by 2030, as all the new installed capacity will require more operational spending to run and maintain.

In fact, 2030 will be the year of the inflection point when offshore wind capex will be on par with offshore oil and gas greenfield capex (excluding exploration work), at about $100 billion. Related: Goldman: Oil To Hit $80 On Largest Ever Demand Jump

Europe, as the most mature market, is still expected to dominate offshore wind spending this decade, totaling about $300 billion. Some of the assets with the largest expenditures are located off the UK, including Orsted’s 4.8 GW Hornsea Two, Three and Four projects, which are lined up for more than $14 billion in capex. The giant Dogger Bank projects, to be developed in three 1.2 GW phases by SSE, could see more than $11 billion in capex, while Scottish Power Renewable’s 3 GW East Anglia Hub will likely involve capex of beyond $8 billion.

China dominated annual spending between 2019 and 2021 due to its substantial annual capacity additions. This decade, the country is forecast to spend about $110 billion. Outside of China, Asia is expected to see significant investments this year, driven by Vietnam and Taiwan. Spending in South Korea and Japan will also increase beginning in 2023 as more projects are lined up.

Meanwhile, the Americas region is falling behind due to the US Jones Act and delayed permitting processes for the US offshore wind industry, which are pushing back the expected start-up years for a number of wind farms. The region is expected to spend just over $70 billion this decade on offshore wind projects – still a significant sum, but well below that of other global regions.

Rystad Energy expects North and South America will only start spending substantial amounts on offshore wind in 2023. The first large-scale project in the US will be the 800-megawatt (MW) Vineyard Wind 1 scheme developed by Avangrid and the Copenhagen Infrastructure consortium off the coast of Massachusetts, with an estimated investment of $2.8 billion.

Turbine manufacturing costs represent the largest share of capex for offshore wind developments with almost 40% of total investments. This trend is expected to continue as countries, especially European ones, are increasingly deploying large turbines.

Foundation manufacturing is the second major cost element for building an offshore wind farm, with a share of about 15% of overall capex during towards 2030. The share of foundation spending to capex should remain at the same level since we do not expect a significant influx of floating foundations this decade.

Cable manufacturing, consisting of array and export cables, accounts for about 14% of the total capex. Combined with the cable installation cost, the segment weighs in at about 20% of capex. This cost is not expected to increase as we approach 2030, as larger turbines help reduce cable and installation costs despite projects moving increasingly further from shore.

“The colossal level of investments anticipated in the offshore wind industry this decade reflects the ambitious targets set by companies and governments alike. As the market matures and economies of scale are achieved, investments could surge further, sparking even more installed capacity,“ says Petra Manuel, offshore wind analyst at Rystad Energy.

By Rystad Energy

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News