Government support to boost offshore wind sector

Final investment decisions reached for the sector reached over 12 GW, excluding China.

The long-term outlook for the offshore wind sector is expected to be robust on the back of support from improved goals set by various governments, according to Rystad Energy.

Alexander Flotre, vice president and head of Offshore Wind at Rystad Energy said there would not be drastic changes in the sector following the setbacks and renegotiations last year due to inflation, interest rates, and supply chain issues.

“[A] change can be noted with authorities supporting long-term goals with improved terms in auctions and industry-specific inflation adjustments,” Flotre said. 

“At the same time, the soaring inflation experienced in recent years is flattening out, removing the need for further interest hikes and rising capital costs for developers and suppliers,” he added.

Flotre added that the record final investment decision on offshore wind projects for over 12 gigawatts, excluding China, despite market uncertainty, signals “healthy activity levels” in the next years.

He added that governments are expected to follow through with their commitments by increasing auction volumes and faster permitting, amongst others.