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Europe Driving Record-Breaking Year For Offshore Wind

With nearly 3.1 GW of offshore wind capacity connections expected for 2015, Europe is driving the industry’s expected 3.6 GW of new capacity.

New analysis from MAKE Consulting concludes that 2015 is likely to see 3.6 GW of new offshore wind capacity connected to local grids by the end of the year, which will nearly double capacity as of the end of 2014.

Leading the way is the European offshore wind industry, which is expected to account for 3.1 GW of new grid-connected capacity additions by the close of 2015, with Germany accounting for 75% of that capacity addition.

MAKE subsequently predicts that, after a milder 2016, the offshore wind industry will stretch into long-term growth at a 19% compound annual growth rate (CAGR) from 2015 to 2024, thanks primarily to key European markets and China, at which point the market will sit at around 92 GW, or equivalent to 10% of the globe’s total wind power capacity.

The figures were published by MAKE Consulting in a new press release made available to subscribers and press in tandem with the consulting company’s latest Global Offshore Wind Power Market report. The report highlights several big-name offshore wind projects set to be completed in 2016 — including the German Gode Wind 1 and 2 projects being developed by DONG Energy, and the grid-connection of part of the Nordergründe project. The 600 MW Gemini project being developed off the Netherlands coast will also see partial commission. Development will also slow in UK waters as the country transitions from its Renewables Obligation scheme to the CfD support scheme, with MAKE predicting no grid-connections to take place in 2016 for the UK.

The report also details a trend towards reduced costs for the offshore wind industry, which MAKE believes will see the Levelised Cost of Electricity (LCOE) drop to a level of €140/MWh today to around €110/MWh by 2020, only to reach a level of €83/MWh by 2025.

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