ENERGY consultant Douglas-Westwood has launched the latest edition of its World Offshore Wind Report, highlighting significant growth as well as the problems of fast-rising costs and difficulties being faced in project financing.
The firm said the industry was now showing “long-promised” growth and market development, with record levels of capacity now under construction.
It added: “Strong growth in deployment rates will be seen in the years ahead but levels of installed capacity will peak in 2011, with a small decline in 2012 and 2013.”
According to Douglas-Westwood, offshore wind will see £18.4billion of capital expenditure in the next five years as 6.6 gigawatts (GW) of new capacity is installed globally. With just over 1.5GW of capacity online at present, this represents significant market growth and is expected lead to an annual capital expenditure of more than £5.3billion at peak.
Of the biggest markets, the UK is dominant at 3GW of new capacity forecast to 2013 – a market worth £9.1billion.
Douglas-Westwood renewable energy manager Adam Westwood said: “The industry is now seeing major projects entering into construction and tendering taking place for projects three-to-four years ahead.
“The start of the next decade will be challenging as the industry tries to sustain itself in the face of costs which have been spiralling.”