UK emerges as global market leader in the offshore wind power market

The UK, supported by aggressive renewable targets, policy backing and a shift towards a greener climate, propelled itself to the head of the global offshore wind power market in 2013, according to GlobalData. The company’s latest report states that the UK’s cumulative offshore wind power installed capacity increased from just over 0.3 GW in 2006 to 3.7 GW in 2013, at an impressive CAGR of 42.9%. With installations expected to increase from 3.7 GW to 11 GW by 2020, at a CAGR of 16.9%, the UK is expected to remain the leading offshore wind power market by the end of the forecast period, boasting a 36.4% share of the global cumulative offshore installed capacity. “The UK’s growing concerns over climate change and the security of its energy system will provide sufficient impetus for the country’s offshore wind industry to continue its growth trajectory," said Swati Singh, GlobalData’s Analyst covering power. "The last decade has seen offshore wind progress from an immature to a proven technology, which is expected to contribute significantly to the achievement of the UK’s renewable targets.” The UK Government has set a target for 15% of the UK’s energy to be generated from renewable sources by 2020. As offshore wind power currently contributes around 3% of the country’s total energy generation, GlobalData expects to see more investment into the industry to help achieve this goal. “Overall project costs have risen as a result of increasing water depths, distance from the shore and average turbine size," GlobalData's Singh added. "With a number of UK installations anticipated between 2016 and 2020, annual investment in the market will jump from $3.3 billion in 2013 to $7.53 billion by 2020.”

The complete "Offshore Wind Turbines and Foundations" report from GlobalData is available online.