According to TGS-4C Offshore’s Global Market Overview report, 12.3 GW of offshore wind projects secured a final investment decision in 2023. European countries contributed 9.3 GW across eight projects, with the UK’s Hornsea 3 as the most notable one. However, the momentum was not confined to Europe alone; significant progress was also evident in the US with the 704-MW Revolution Wind project and in Asian markets, where Taiwan and South Korea finalized projects totaling 2.3 GW.
Global offtake dynamics and lease rounds
Although there was a dip in offtake activity in 2023, falling nearly 2 GW to 9.5 GW, mainly due to the absence of offshore wind in the UK’s contracts for difference (CfD) auction, there is an upward trajectory with five auctions currently underway in the US. An impressive 47.5 GW of offtake auctions are scheduled for 2024, of which 40 GW will be in Europe.
TGS-4C Offshore also reported a busy schedule for lease rounds following the awarding of 43.8 GW of sites in 2023, a third of which were allocated for floating wind. The upcoming lease rounds are expansive, covering numerous countries across continents, including Australia, Belgium, Colombia, Denmark, Estonia, Finland, France, India, Japan, Lithuania, Netherlands, Norway, Portugal, Spain, the UK, Uruguay, and the US.
Global trends and floating wind potential
TGS-4C Offshore’s Global Market Overview report includes several other industry insights, including market indicators, which examine global additions, permitting, offtake, and timelines since 2010. The latest market indicators show that with 879 GW accounted for by existing projects and national targets, a further 1,121 GW would still be needed to meet IRENA/IEA’s estimated net-zero requirement of 2,000 GW by 2050.
Furthermore, the report features an exclusive deep dive into floating wind technology as part of a unique market attractiveness index, which evaluates the most promising markets for floating wind. Once again, the UK comes out on top overall, followed by Norway. Other markets scoring highly include South Korea, which currently has the greatest perceived potential, and the US, which has the greatest ambition.
Looking ahead, TGS-4C Offshore anticipates that 2024 may surpass the 2023 record, with the potential closure of offshore wind projects totaling up to 13 GW, leading to an unprecedented level of construction activity later in the decade.