Global offshore wind installations to surpass 520 GW by 2040

The global offshore wind sector is poised for significant growth, with total installations projected to surpass 520 GW by 2040, according to Rystad Energy. Despite recent challenges such as inflationary pressures, supply chain disruptions, and delays in project approvals and auctions, the sector has shown resilience, with a 7% increase in new capacity additions in 2023. This momentum is expected to continue, with new capacity additions predicted to rise by 9% to over 11 GW by the end of 2024.

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Offshore wind installations

Europe is expected to play a key role in this expansion, particularly in the floating wind segment. By 2040, Europe is projected to account for over 70% of global floating wind installations, with the UK, France, and Portugal leading the way. Floating wind capacity in Europe could reach nearly 90 GW by 2040, despite anticipated project delays post-2030. Asia, excluding mainland China, is also expected to contribute significantly, capturing 20% of global floating wind installations by 2040.

However, the sector faces ongoing challenges, particularly in supply chain constraints affecting both floating and bottom-fixed wind technologies. These issues could limit floating wind capacity to less than 7 GW by 2030 unless governments increase support. Despite these challenges, the sector remains buoyed by increased investment and auction activity, though addressing logistical bottlenecks is crucial to ensure the industry’s continued growth and its role in the global energy transition.