Original news was published on 04 March 2019
The offshore wind sector is set to install more than 69 gigawatts of new capacity through 2027, driving breakbulk demand globally, according to the latest research from consultancy Navigant Research.
The firm predicts that operating capacity will exceed 100 gigawatts by 2030 thanks to offshore wind projects “quickly becoming more cost-effective.”
“Power purchase prices for projects are dropping, driven by turbine size and other technology improvements, economies of scale, faster installation cycles, and increased supply chain competition,” a spokesperson for Navigant said.
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Navigant highlights the UK, the Netherlands, Denmark, Germany and Belgium as “industry-leading countries” already well into the transition phase to market-oriented policies where highly competitive bidding for power contracts dominates.
However it also notes that more developed countries are reaching maturity for offshore wind auctions, with bidding already started in the U.S. ahead of offshore project installations along the northeastern seaboard.
Vineyard project gets CRMC backing
One of the largest of these projects on the U.S. Northeast coast is the Vineyard Wind development off the coast of Martha's Vineyard in Massachusetts, which was recently approved by the Coastal Resources Management Council.
The 84-turbine project is expected to generate 800 megawatts once complete and drive demand for offshore breakbulk handling skills not yet established in the U.S. following backing from the island’s dominant fishing industry.
"We are confident that today’s vote, combined with the US$16.7 million comprehensive funding package developed in consultation with Rhode Island fishermen and CRMC staff, will allow the Ocean State’s fishing industry to safely operate and grow side-by-side with our project and future offshore wind developments,” said Lars Pederson, CEO of Vineyard Wind.