Going Global : Expanding Offshore Wind to Emerging Markets
For many years, offshore wind was the expensive cousin of onshore wind with generation costs in the range of $150 to $200 per megawatt hour (MWh). This changed dramatically between 2016 and 2017 when a series of competitive tenders in Europe witnes...
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Format: | Report |
Language: | English |
Published: |
World Bank, Washington, DC
2019
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Online Access: | http://documents.worldbank.org/curated/en/716891572457609829/Going-Global-Expanding-Offshore-Wind-To-Emerging-Markets http://hdl.handle.net/10986/32801 |
Summary: | For many years, offshore wind was the
expensive cousin of onshore wind with generation costs in
the range of $150 to $200 per megawatt hour (MWh). This
changed dramatically between 2016 and 2017 when a series of
competitive tenders in Europe witnessed strike prices fall
below $100/MWh, culminating in projects that bid into
merchant markets with no subsidy at all. Prices have
continued to drop thanks to technological improvements,
economies of scale, maturation of supply chains, better
procurement strategies, and the efforts of large and
sophisticated project developers, including several from the
utility and oil and gas sectors. However, to date the
offshore wind industry has remained largely confined to
Europe and China. As prices continue to drop, offshore wind
is increasingly gaining traction in emerging markets.
Projections suggest that offshore wind will add between 7 to
11 gigawatts (GW) per year from 2019 to 2024, reaching
between 15 to 21 GW/year from 2025 to 2030. While much of
the growth is expected in Europe, China, and new
Organization for Economic Co-operation and Development
(OECD) markets including Japan, South Korea, and the United
States, there is ample potential for developing countries to
ride on this momentum and ramp up their local offshore
markets. This report presents eight case studies on the
technical potential for offshore wind in Brazil, India,
Morocco, the Philippines, South Africa, Sri Lanka, Turkey,
and Vietnam (here, technical potential is calculated on the
basis of wind speed and water depth). Considering offshore
areas within 200 kilometers (km) of the coast, 3 these eight
countries have a total technical potential of approximately
3.1 terawatts, including 1,016 GW of fixed capacity and
2,066 GW of floating capacity. UPDATE (May 2020): Since publication of this report the World Bank has published 56 country and regional maps, including updated versions of the maps available in this report. The maps can be accessed via the ESMAP website: https://esmap.org/node/197070. |
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