Page 4 - AfrElec Week 24 2022

AfrElec COMMENTARY AfrElec

Global offshore capacity

nearly doubled in 2021: RCG

COMMMENTARY AGAINST a backdrop of renewed focus on the groundwork was laid for future site alloca-
energy security and the transition to low-car- tions in Spain, Greece, Italy, Norway, Ireland and
bon energies, new research from the UK-based Lithuania, said the consultancy.
Renewables Consulting Group (RCG) found In the Asia-Pacific region, Japan’s first off-
that global offshore wind development capacity shore wind auctions took place, securing a route
grew 89% in 2021. to market for 1.7 GW of capacity. Rules were
More than 200 GW of new offshore wind refined for the long-awaited Round 3 auctions
projects were announced in established markets, in Taiwan, clarifying local content requirements
such as the United Kingdom and Netherlands, and available development areas. Further south
and new markets, such as Italy and Australia. still, the Australian government detailed the per-
According to the report, Brazil is the new mitting process required for projects to obtain
frontrunner in terms of an offshore wind devel- seabed exclusivity throughout the development
opment pipeline. So far, it has no offshore wind lifecycle of an offshore wind farm.
farms. In the Americas, the US Department of the
RCG’s 2021 Global Offshore Wind Annual Interior’s Bureau of Ocean Energy Management
Market Report found that Brazil had a pipeline (BOEM) announced it would hold up to seven
of 97 GW, higher even than the 66 GW in devel- new offshore wind lease sales by 2025 in the New
opment in the waters off Vietnam. York Bight, and off the Carolinas, California and
The UK, third in the ranking and the previ- Oregon, as well as in the Central Atlantic, Gulf of
ous leader in the race to install offshore wind Mexico and the Gulf of Maine.
turbines, has 63 GW of offshore wind in the The lease auction for the New York Bight area
works and a sizeable base of almost 10 GW concluded in early 2022 with six areas totalling
already installed. Vietnam has less than a giga- more than 488,000 acres (197,000 hectares)
watt installed. and a massive $4.37bn in bid revenue. The lease
Rounding out the top five are Sweden, with auction results were the highest-grossing com-
more than 51 GW waiting to be installed, and petitive offshore energy lease sale in history,
Taiwan, with more than 46 GW. China has the including oil and gas lease sales.
largest base already operating, with more than Also in 2022, Taiwan is launching its third
16 GW in operation – the largest operating base auction round for zonal development, with up
anywhere – but less than 30 GW in development to 3 GW of capacity. The upcoming tenders are
because subsidies have been expiring. expected to be highly competitive due to the fact
Notably, Australia (#10), Italy (#15) and there is a far larger amount of capacity in devel-
Finland (#16) – in terms of total installed and opment than will be awarded subsidies.
in development – are new entrants among the New project leasing has been underpinned
world leaders and signify the growing popularity – and in some cases driven – by an incredible
of offshore wind as a viable option to support the expansion in the global development portfolio.
transition to a low-carbon economy, said RCG. Markets such as Brazil, Italy, Spain and Australia
The predominant theme, however, turned up have been pushed to draft and ready offshore
by RCG researchers was leasing activity in 2021 wind leasing and development frameworks in
– particularly across Europe. Scotland allocated response to proposals for tens of projects com-
almost 25 GW of capacity in the Scotwind pro- peting for seabed areas and grid connection
cess, its first offshore leasing round in a decade. points.
In Poland, the first contract for differences Other markets, such as Colombia and the
(CFD) round for offshore wind projects took Philippines, have recognised the need for more
place, with 5.9 GW of capacity securing a route to formal development processes earlier in the
market. The first new auction for projects under respective market maturation, issuing offshore
Germany’s offshore wind act also occurred. The wind frameworks after a smaller number of pro-
first commercial-scale floating wind project auc- ject announcements, said RCG.
tion in France was launched. Many more auction The report comes amidst more signals this
firsts are to be expected in the coming years, as month that the offshore wind market is ramping

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