Offshore Wind Spend to Average $21B per year

MarineLink.com
Wednesday, June 19, 2013

Douglas-Westwood (DW) forecast offshore wind installations averaging 3.2 GW per year over the next ten years with capital expenditure hitting a peak of $24.1B in 2016. The fifth edition of DW’s World Offshore Wind Market Forecast launched today presents a new longer-term forecast and examines the key commercial developments since the last publication to provide detailed insight to established players and new entrant alike.


“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 DW approach to market modeling takes a conservative view, with particular sensitivity to the more speculative projects. “Historically, growth has been slower than expected, and many uncertainties are yet to be resolved. However, there is a positive upward trend, with significant expenditure expected, which has attracted many of the largest industrial players from Areva to Samsung Heavy Industries,” commented DW manager Frank Wright.


The report highlights a series of challenges which are acting to constrain development, including the high cost levels in the industry. Capital outlays and recurring operational spending mean that subsidies are required to support development, at a time when the public finances in key markets such as the UK and Germany are squeezed and the consumer is seeing an upward trend in energy prices. This makes it increasingly difficult for governments to justify support, leading to a focus on identifying cost reduction strategies including standardisation of business practices and development of larger wind turbines designed specifically for the offshore environment.


From a financing perspective the risks associated with offshore construction, new wind turbine technology and offshore operations have made it difficult for project developers to tap into new sources of capital. The current dependence on global utilities to self-fund projects is unsustainable in the long-run, leading to a potential funding gap in the future. As larger players continue to enter the market, often from the offshore oil & gas sector, and new wind turbines reliability is proven over a sustained period of time, it is hoped that new investors will become more comfortable with the risk profile.

 
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

China Strengthens Maritime Ties with Pak

The Vice Chairman of China's Central Military Commission General Fan Changlong has pledged to deepen maritime security and military technology cooperation during

Ecochlor Presents BWTS Case Study at CMA

Ballast water treatment technology developer Ecochlor Inc. presented a project case study yesterday at CMA Shipping 2015 in Stamford, Conn. The case study covered

BMT’s REMBRANDT-INLAND Simulation Tool

Brown Water Training and Collision Reconstruction Taken to a New Level When a new or expanded port is planned on an inland waterway, how do you assure the civil

Offshore

GAIL Seeks 7 LNG Cargoes

GAIL (India) will buy seven liquefied natural gas (LNG) cargoes for delivery from October 2015 until December 2016, according to the tender document obtained by Reuters.

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

JIT Transit Slots Reduced at Panama Canal

The Panama Canal has experienced an unusual increase in the number of vessels awaiting transit during the past few weeks. Several measures have been implemented to reduce the backlog,

Finance

Yachting Malta PPP Sets Sail

Yatching Malta Ltd (YML) - a new public private partnership (PPP) between the government and the Royal Malta Yacht Club (RMYC) was formed with the aim of putting Malta on "the global yachting map".

China Cosco's Profit Up 54%

The Shanghai-and-Hong Kong-listed flagship unit of China Ocean Shipping Group, China Cosco Holdings Co Ltd says that its 2014 net profit went up 54 percent y/y at 362.

Taiwan Boosts Yacht Export

Taiwan's yacht industry saw its first double-digit growth in nearly a decade, indicating an inspiring revival led by development and sales of larger leisure boats,

Energy

GAIL Seeks 7 LNG Cargoes

GAIL (India) will buy seven liquefied natural gas (LNG) cargoes for delivery from October 2015 until December 2016, according to the tender document obtained by Reuters.

SAL Heavy Lift Performs Offshore Windfarm Work

MV Lone proves as project platform for Wikinger wind farm   SAL Heavy Lift informs it has completed the second phase of the Wikinger Pile Testing Campaign with DP II Class vessel MV Lone.

Huge Heavy Lift Project Wraps up in Colombia

Mammoet concludes multi-year heavy lifting and transport project for refinery in Cartagena, Colombia   Mammoet USA informs it has completed a heavy lifting and

Marine Power

Indonesia Partners with China on Maritime

Indonesian President Joko “Jokowi” Widodo and Chinese President Xi Jinping pledged increased maritime cooperation during the formers visit to China.   The joint

Wärtsilä's' New Plant in Brazil

Following an investment of 20 million euros, Wärtsilä's' new unit will produce and test motor generators and thrusters   Wärtsilä's first unit at Porto do Açu in São João da Barra (RJ),

Kvichak to Build Catamaran Research Vessel

Kvichak Marine Industries, Inc. was recently awarded a contract for construction of a 60’ aluminum catamaran research vessel for the California Department of Water

Marine Science

Salvage, Wreck Removal Beset with Chronic Problems

The basic nature of maritime casualties, salvage and wreck removal has evolved rapidly over the last few years. Ships and offshore constructions have become more technologically elaborate,

Moskito to Recover Oil from Sunken Wrecks

A tool for removing oil in submerged vessels was developed in Norway by Miko Marine. Moskito is designed to address the pollution threat that exists with the

Kvichak to Build Catamaran Research Vessel

Kvichak Marine Industries, Inc. was recently awarded a contract for construction of a 60’ aluminum catamaran research vessel for the California Department of Water

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1395 sec (7 req/sec)