Full year 2023 statistics for the offshore wind sector have today been released by Clarksons Research onto Renewables Intelligence Network. Reviewing the data, Steve Gordon, Managing Director of Clarksons Research commented:
Despite offshore wind facing clear inflationary challenges in 2023, the sector showed some resilience as newly sanctioned project investment reached a record high globally ($59bn; 19.8 GW).
While inflation added to the project CAPEX levels, firm investment was driven primarily by large FIDs in Europe, where a record $33bn (9.2 GW) was committed (+33% and +24% on the previous high of 2020 respectively).
Active offshore wind capacity grew by 10% across 2023 to reach 68 GW globally at the end of the year; 6.2 GW of capacity was fully commissioned last year, while 48 GW was in the construction phase at the end of 2023 representing the highest total on record.
Internationalisation continues, with 19 countries having active offshore wind capacity at the end of 2023 (projected to rise to 29 by 2030); Spain produced its first power from offshore wind last year, while the first offshore wind auction in Lithuania was held.
Newbuild ordering diverged between ‘wind’ vessel sectors in 2023; ordering continued in the C/SOV sector, with 23 orders placed globally (following a record 24 in 2022), while WTIV ordering eased back (only 5 (1 International spec) WTIV orders were reported globally in 2023, following 30 (4 International spec) in 2022) amid a large orderbook intended for the Chinese domestic market and some uncertainty over increasing turbine sizes and project delays in Europe and the US.
C/SOV owners continued to support charterers to be ‘green through the supply chain’; all 53 C/SOVs currently on order will be equipped with battery packs, while 13 will be alternative fuel capable (including 8 methanol dual fuelled units).
Wind vessel markets strengthened in 2023:
WTIVs: The European WTIV market enjoyed a firm year in 2023. European WTIV utilisation averaged a robust 93% during the peak season (and the fleet was fully utilised in Aug-23), while several charterers booked 4th generation WTIVs (currently on order) for upcoming projects at rates reportedly >€300,000/day (~30% above start-2023) with the International / European spec WTIV market expected to remain tight in 2024.
C/SOVs: The ‘W2W’ market remained very tight across 2023. European ‘W2W’ rates (SPS coded, >40 Pax) peaked at a firm €56,000/day during Q2-23 (up 27% y-o-y) on the back of firm demand and limited available supply as some MSVs with temporary gangways returned to the oil and gas sector.
The long-term outlook for growth of the offshore wind sector remains positive, and offshore wind looks set to play a vital role in the ‘Energy Transition’; by 2030, ~250 GW (~30,000 turbines, 720 farms) is projected to be active globally, and offshore wind could account for between 7-10% of the global energy mix by 2050 (up from just 0.4% today).
A more detailed report is available on request or is downloadable from Renewables Intelligence Network for subscribers. For subscription or trial details to, contact [email protected]. Any views or opinions presented above are solely those of the author and do not necessarily represent those of the Clarksons group.
Renewables Intelligence Network (RIN) is a powerful new offering from Clarksons Research covering both macro and granular data, intelligence and forecasts around: long term Energy Transition modelling; project tracking of offshore wind farms; detailed country briefs and forecasts; profiles of all developers involved in offshore renewables; the offshore “wind” fleet and the vessels, owners and yards involved; green technology across this fleet; dashboard analytics; dynamic mapping and deployment analysis; port analysis; tidal, hydrogen and carbon capture projects and a comprehensive intelligence report series.
Clarksons Research, the data and analytics arm of Clarksons the leading shipping services provider, are the market leaders in the provision of independent data and intelligence around shipping, trade, offshore and the maritime energy transition. Millions of data points are processed and analysed each day to provide trusted and insightful intelligence to thousands of stakeholders across maritime. Better data for better decisions.
Source: Clarksons Research