Road accident deaths drop by 50% in Saudi Arabia    SR 3.95 million fines for 3 employees of a company and 6-month jail for one for violating Capital Market Law    Qassim emir launches 52 health projects costing a total of SR456 million    BD and INS partner to elevate standards of infusion care in MENAT    Dubai Design Week launches its 10th edition, celebrating creativity and innovation    GASTAT: Passengers of public transport bus and train soar 176% and 33% respectively in 2023    Fakeeh Care Group reports 9M-2024 net profit of SR195.3 million, up 49% y-o-y driven by solid revenue growth and robust profitability    Italy's 'Libra' to arrive in Albania with just eight migrants on board    South Africa shuts border crossing with Mozambique over poll unrest    French families sue TikTok over harmful content that allegedly led to suicides    Harris tells supporters 'never give up' and urges peaceful transfer of power    HRT does not impact life expectancy — UK health body    Liam Payne's body to be flown back to the UK    Suspect arrested for banking fraud totaling SR493 million as Nazaha pursues corruption charges    Arab leaders and heads of state congratulate US President-elect Donald Trump    Neymar suffers muscle tear, out for 4-6 weeks    Crown Prince hails Saudi medical team that performed world's first fully robotic heart transplant    Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Expenditure splash of $810 billion is expected for the offshore wind industry this decade
Published in The Saudi Gazette on 06 - 05 - 2021

The offshore wind industry's global installed capacity is set to exceed 250 gigawatts (GW) by 2030, driven by a surge in coming projects, a Rystad Energy report shows. The combined capital and operational expenditure for the decade is set to add up to an eye-popping $810 billion, signaling an increasing shift of investments from oil and gas to renewable energy technologies.
The cumulative installed capacity of global offshore wind projects climbed to 33 GW in 2020 — a significant achievement for an industry that has nearly tripled its size since 2016. We expect the world's installed capacity to hit an estimated 109 GW by 2025 and rise further to 251 GW by 2030, growing by 22% a year on average.
This massive boost in capacity will involve a steep increase in global spending. Rystad Energy estimates that total expenditure will amount to $56 billion in 2021 as almost 13 GW of capacity is expected to be commissioned, lifting the cumulative global installed capacity to 46 GW.
Yearly spending will continue to rise to $126 billion in 2030, after a short-lived dip in 2022 and 2023. Capex today accounts for 95% of the total expenditure, with opex representing only 5%. The capex share is expected to decline to about 80% by 2030, as all the new installed capacity will require more operational spending to run and maintain.
In fact, 2030 will be the year of the inflection point when offshore wind capex will be on par with offshore oil and gas greenfield capex (excluding exploration work), at about $100 billion.
Europe, as the most mature market, is still expected to dominate offshore wind spending this decade, totaling about $300 billion. Some of the assets with the largest expenditures are located off the UK, including Orsted's 4.8 GW Hornsea Two, Three and Four projects, which are lined up for more than $14 billion in capex.
The giant Dogger Bank projects, to be developed in three 1.2 GW phases by SSE, could see more than $11 billion in capex, while Scottish Power Renewable's 3 GW East Anglia Hub will likely involve capex of beyond $8 billion.
China dominated annual spending between 2019 and 2021 due to its substantial annual capacity additions. This decade, the country is forecast to spend about $110 billion. Outside of China, Asia is expected to see significant investments this year, driven by Vietnam and Taiwan. Spending in South Korea and Japan will also increase beginning in 2023 as more projects are lined up.
Meanwhile, the Americas region is falling behind due to the US Jones Act and delayed permitting processes for the US offshore wind industry, which are pushing back the expected start-up years for a number of wind farms. The region is expected to spend just over $70 billion this decade on offshore wind projects — still a significant sum, but well below that of other global regions.
Rystad Energy expects North and South America will only start spending substantial amounts on offshore wind in 2023. The first large-scale project in the US will be the 800-megawatt (MW) Vineyard Wind 1 scheme developed by Avangrid and the Copenhagen Infrastructure consortium off the coast of Massachusetts, with an estimated investment of $2.8 billion.
Turbine manufacturing costs represent the largest share of capex for offshore wind developments with almost 40% of total investments. This trend is expected to continue as countries, especially European ones, are increasingly deploying large turbines.
Foundation manufacturing is the second major cost element for building an offshore wind farm, with a share of about 15% of overall capex during towards 2030. The share of foundation spending to capex should remain at the same level since we do not expect a significant influx of floating foundations this decade.
Cable manufacturing, consisting of array and export cables, accounts for about 14% of the total capex. Combined with the cable installation cost, the segment weighs in at about 20% of capex.
This cost is not expected to increase as we approach 2030, as larger turbines help reduce cable and installation costs despite projects moving increasingly further from shore.
"The colossal level of investments anticipated in the offshore wind industry this decade reflects the ambitious targets set by companies and governments alike. As the market matures and economies of scale are achieved, investments could surge further, sparking even more installed capacity," said Rystad Energy offshore wind analyst Petra Manuel. — Rystad Energy


Clic here to read the story from its source.