It’s a fuel that will never run out. The raw material is abundantly available across many parts of Europe and the ‘extraction’ is based on clean technology. The ‘fuel’ in question, of course, is offshore wind and across the region many countries have ambitious plans to make it a key part of their future energy mix. Isabel Boira-Segarra, Partner (Renewables) for EC Harris, explains more.
Current European market overview
Since 2006 there has been rapid growth in the European offshore wind sector. By the end of 2011 the total offshore installed capacity was 3.8GW and in the past twelve months alone, 866 MW of new capacity was connected, half of which came from UK sites. Furthermore, industry reports suggest that by 2013 there could be an additional 3.3GW installed.
The UK is the current leader in the European offshore wind market with 55 per cent of Europe’s total installed capacity and 2.1GW in operation, representing more than 25 per cent of the UK’s total wind energy portfolio. And there are big plans to do even more with 11-18GW of the country’s 2020 EU renewable energy targets expected to be generated through offshore wind and the potential for a further 40GW to be deployed to help the UK meet its 2027 carbon budgets and beyond.
If the potential of Round 3 is fully realised the UK could emerge as a global leader in the offshore wind market. However, the industry remains immature and future growth depends on the creation of a sustainable policy framework that accelerates consenting and improves pipeline visibility in order for the supply chain to develop and, critically, the required investment to be made. Whilst the overall pipeline implied by Round 3 and the Scottish Territorial Waters is very large, the UK’s current consented capacity (2.9GW) remains limited and unless constraints are lifted the next phase of large-scale offshore development could take place off the coasts of mainland Europe instead.
Outside of the UK, other EU member states have ambitious plans for offshore wind with the EWEA anticipating up to 40GW being installed by 2020, with a potential additional 110GW being built between 2020 and 2030. Denmark has the second largest offshore wind portfolio with 857MW of installed capacity which represents 22 per cent of the overall market however its current development pipeline is relatively small.
