Page 12 - AfrElec Week 05 2021

AfrElec NEWS IN BRIEF AfrElec

for projects in 2020. The UK sanctioned We explored the impact of a milestone year These developments constitute a strong
more than 4.7 GW of offshore wind and the in our recent report, 2020 in Review – a New foundation for future growth.
Netherlands followed with over 2.2 GW. As a Baseline for the Offshore Wind Industry. The scale of ambition will only increase
result, major projects such as Triton Knoll in To understand the developments in the in 2021. We expect to see policymakers up
the UK, Borssele 3 & 4 in the Netherlands and offshore wind industry in 2020, we need offshore wind targets, increase the focus on
Kriegers Flak in Denmark are expected to be to look across multiple parameters. Global jobs creation, and facilitate innovation to seed
completed during 2021. operational offshore wind capacity (excluding future exports. Power-to-X (PtX) and hybrid
In the second half of last year, almost China) reached 25.5GW by the end of 2020 projects will continue to dominate headlines.
25 GW of capacity was added to the global – a cumulative 12% increase on 2019, but a Similarly, offshore wind developers have
backlog. Currently, Brazil has no operational 29% drop in additions compared to 2019. In increased their renewables ambitions. Not
offshore wind capacity, but its backlog grew fact, the number of turbines connected in only in terms of capacity, but also by signing
significantly during 2020 as the country added 2020 is the second lowest in eight years, which power purchase agreements (PPAs) and
more than 15 GW to the drawing board. subdued demand across the balance of plant rolling out decarbonisation plans for their
In addition, other regions in Asia outside segments. supply chains.
China are preparing for a ground-breaking New tenders declined even more, dropping Decarbonisation will become a larger
year, Taiwan and Vietnam have finally started 93% year on year (YoY). So, why is 2020 still theme across the industry. We saw strong
to add significant volumes to their project considered one of the most encouraging years indications of this in the installation segments
pipelines – making 2021 a year to look for the offshore wind industry? in 2020, where 96% of the announced
forward to in the offshore wind market. An all-time-high 9 GW of capacity secured offshore wind vessels held some kind of green
RYSTAD ENERGY final investment decision (FID) in 2020, credentials.
despite the backdrop of a global pandemic. The pool of suppliers will continue to
That has already been translated into orders grow and globalise in 2021. Both established
WIND for the supply chain. suppliers and new entrants will evolve their
Project transactions grew 112% YoY as strategies, broadening their role to better
WoodMac says offshore established offshore wind players wholly or capture future growth.
partly acquired assets in emerging markets.
2020 saw the lowest tender activity in eight
wind shows long-term the offshore wind industry can be seen in the years. That did not reflect of a lack of appetite
Arguably the strongest sign of interest in
for offshore wind, but rather a transition in
promise after short-term alliances formed. A record 38 alliances were support schemes. Tender activity will pick
up significantly in 2021 – we anticipate the
signed by offshore wind developers in 2020,
decline involving 82 companies – a 90% increase YoY. award of a record 23+ GW of tenders across
Offshore wind ambitions ramped up
seven markets. Japan and Poland will award
For the offshore wind industry, 2020 was all across the globe. The EU announced a 2050 their first commercial offshore wind projects
about ambition, said Wood Mackenzie in a offshore wind target of 300 GW and the 2030 this year, the UK kicks off the world’s largest
report. offshore target for the UK was boosted to 40 offshore wind tender, and a new wave of
Policymakers raised the bar for renewables GW. China, Japan and South Korea – all of tenders will be awarded across the US. We
growth and added emphasis on job creation which are central offshore markets in Asia expect these events to catalyse new supply
amid steep offshore wind cost reductions and – committed to net zero targets. And with chain investments.
the Covid-19 crisis. Renewables targets have offshore wind expected to play a central role Tenders won’t focus solely on price. Local
been raised, and decarbonisation plans that in Joe Biden’s energy agenda, the 2020 US sourcing and job creation will be particularly
span the length of the offshore supply chain election was also considered a positive event important in emerging markets, while the
are being brought forward. for the offshore wind industry. production profile and PtX will play a larger

P12 www. NEWSBASE .com Week 05 04•February•2021