Oct 11, 2011 - Revenues from offshore wind power generation are expected to reach USD 104 billion (EUR 76.6bn) by 2017, driven by growing investment in the sector, Pike Research projects.
This translates into a 53% compound annual growth rate (CAGR) in the coming six years. Revenues may hit USD 130.5 billion under a more daring scenario, the cleantech market intelligence firm says in a recent report.
In 2017 western Europe will make up 75% of the world's offshore wind power capacity, the company projects.
Globally, the sector will keep growing due to the fact that onshore wind resource sites close to urban centres have already been developed. In addition, some of the best wind resources globally are located offshore and there are many high-potential coastal areas in shallow ocean waters relatively close to urban population centres, Pike Research said.
According to the report, bringing the cost of offshore wind energy closer to USD 0.10 per kWh in the next two decades is crucial for the sector's long-term fate.
At present infrastructure, installation and maintenance costs account for some 70% of an offshore project's cost, excluding the wind turbine. The cost of offshore wind generation is at times two to three times higher than that of onshore projects, so the industry is looking to deploy larger turbines in larger arrays.
(USD 1 = EUR 0.736)
Choose your newsletter by Renewables Now. Join for free!