The world will spend an estimated $ 1 trillion on offshore wind power by 2031

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(Bloomberg) – Coastal wind power installations will increase nearly ninefold this decade as the world invests $ 1 trillion in clean energy technology to help meet climate goals, according to consultant Wood Mackenzie Limited.

By 2030, 24 countries will have sea turbines, responsible for 330 gigawatts of production capacity, analysts including Soren Lassen said in a report on Wednesday. This compares to 34 gigawatts in nine countries at the end of 2020. Rising costs to build and install huge fleets will hit 1 trillion in 2031.

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As offshore wind power has become a common part of the system, utilities and the government are looking beyond the minimum cost when deciding who to buy turbines from, Lassen said. They include localization requirements for job growth, increased emphasis on environmental mitigation and sustainably stored equipment, and calls on developers to ensure that uninterrupted generation can be integrated into a system that requires 24-hour power generation.

Increased competition and fading subsidies are also eating away at profit margins for developers, analysts say.

“The challenge is that some opportunities in offshore wind space will go unrivaled,” Lassen said. “As more companies are bidding, lease payments are skyrocketing and subsidies are declining, project revenue is declining.”

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