There are just some things that even a pandemic can’t stop. Offshore wind investments seem to be one of those. Being in an industry that relies so heavily on natural forces, resilience has become a true characteristic of renewable projects.
In one of our deep dive blogs, PowerHub’s Director of Sales and Strategic Partnerships explores the renewable energy trends to strongly watch out for in 2020 and beyond. A rise in global offshore wind projects makes it to the top 5 list.
In line with this trend, the first half of 2020 saw $35 billion worth of offshore wind investments around the world. This number equals four times the rate recorded in the first half of 2019. And contributes to the global investment target of $350 billion till 2030.
There’s been quite a bit of speculation for this record rise. According to experts at Bloomberg New Energy Finance, the growth in offshore wind investments reflects the two-third fall in its costs. Being one of the more expensive renewable energy options, this decline makes for a lucrative investment and a better chance for the world to achieve its net-zero targets.
Another factor responsible for this growth is China’s government subsidy regime. However, it is set to expire come 2021. Either way, investment by global leaders like China, Europe, and the United States is a testament that the market will continue to expand.
Consequently, making offshore wind power more widely available.
Offshore Wind Investments Will Power an Energy Revolution
A detailed analysis of offshore wind investments by the International Energy Agency is particularly interesting. It asserts that renewables could create an oversupply of power if floating turbines were populated on all viable sites, 60km off the coast and 60m deep.
These wind farms could generate almost 36,000 terawatt-hours of energy, while the global demand for power caps at 23,000 terawatt-hours.
At present, offshore wind contributes 0.3% to the global energy pie. However, by 2040, it will expand 15 times, amounting to a $1tn industry. All this progress within a span of 20 years.
There’s only one way to describe. R.E.V.O.L.U.T.I.O.N.