United Kingdom (UK) Offshore Wind Turbine market is anticipated to grow during
the forecast period. In 2021, 2,500 offshore wind turbines in the UK generated
12% of the country's electricity. 15% of the electricity in the UK came from
nuclear. Both are insignificant in comparison to gas, which provided 40% of the
power in the UK.
- The UK
government articulated its commitment to supporting renewable energy sectors
through The Ten Point Plan for a Green Industrial Revolution published in the
late 2020s. This plan pledged to mobilize over USD 15 billion in support of
the green industrial revolution with hopes that the private sector could be persuaded
to match this threefold. And by 2030, UK government aim to produce 40GW of
offshore wind, including 1GW of innovative floating offshore wind in the
windiest parts of seas. In 2030, this would be enough offshore wind energy to
power every home in the UK.
- Moreover,
the offshore wind sector has matured rapidly over the past few years in the
waters around the UK and it is now capable of providing a reliable delivery of the
low carbon energy mix with proven technology. The UK has retained its top spot
in the industry in terms of projects in the pipeline or already in use. Offshore
wind currently contributes about 13% to the UK electricity mix. The UK
now possess around 12.7 GW of connected offshore wind energy across 44 wind
farms, totalling over 2,500 turbines. It installed over 2.3 GW of new
installations in 2021 alone which made up 70% of total installations in Europe
that year.
- In
addition, the UK electricity market is transitioning to a greener energy mix.
By 2025, all coal-fired power plants in the UK will be shut down, and offshore
wind power will become a bigger part of the country's low-carbon energy mix. In
the recent years, the offshore wind industry in the UK's surrounding waters has
developed quickly, and it is now ready to offer a dependable supply with tested
technology. In fact, the UK has maintained its top position in the sector in
terms of projects that are either in the works or are currently operational,
having a combined capacity of 38.9GW. Nowadays, around 10% of the UK's
electricity comes from offshore wind.
- The
United Kingdom is anticipated to soon offer excellent potential for the
offshore wind energy sector, according to the International Renewable Energy
Agency. The nation needs more than 125 GW of offshore wind energy to meet
the rising demand for power and to reach the net-zero goal by 2050. This
opens up a lot of market opportunities for offshore wind energy.
Wind turbine's blades can rotate at a
constant or variable speed between 13 and 20 times per minute, depending on the
technology utilised. The rotor's velocity varies according to the wind speed to
maximise efficiency.
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United Kingdom Offshore Wind Turbine
Market: Drivers & Trends
Green Hydrogen Production:
Increasing inclination toward clean energy
has been compelling the United Kingdom government and the energy companies
(including oil & gas firms) to provide due consideration to alternative
sources of energy that are cleaner and energy efficient. Green Hydrogen, a
zero-emission fuel that can be produced using offshore wind energy as a power
source, is considered a viable option as an alternative fuel source. Apart from
the government and the energy firms, other end users looking to utilize green
hydrogen include steel producers and chemical companies. Other applications
where green hydrogen can be used are transportation, heating, and grid storage.
Various projects have been proposed where offshore wind turbines can be used
for production of green hydrogen. For instance, in February 2023, UK green
hydrogen pioneer GeoPura has received USD 39.28 million investment from global
industry leaders, with the round led by GM Ventures, the investment arm of
General Motors, and co-led by Barclays Sustainable Impact Capital with
participation from SWEN CP and Siemens Energy Ventures.
Their aim is to scale its green hydrogen
business, which is replacing diesel-fuelled generators and enabling
zero-emissions energy across the board to create a more sustainable world. The
rising inclination towards green hydrogen is anticipated to propel the United
Kingdom offshore wind turbine market.
Increasing Investment in the Clean Energy
Sources is Projected to Drive the Market Growth:
To reduce carbon emissions, the United
Kingdom government is taking necessary measures towards encouraging to invest
in renewable energy sources such as solar and wind energy. As a result, the
amount of electricity generated from wind energy has grown significantly in
recent years. Rising electricity demand and increasing concern for
non-renewable energy sources are propelling the growth of offshore wind energy.
Additionally, the declining price of wind turbines and advancements in wind
technology have reduced the cost of generating electricity from wind energy.
Moreover, growing competition among market players has led to a decrease in
installation cost, contributing to a decrease in the cost of electricity
generated from wind turbines. As a result, the United Kingdom has steadily
increased its offshore wind capacity, thereby driving the market growth.
Government Policies and Initiatives:
Offshore wind energy is widely regarded as
one of the most credible sources for increasing renewable energy production
towards a resilient and decarbonised energy supply. Therefore, government of United
Kingdom has been driving a green economy through various actions and
initiatives in offshore wind energy. For instance, the UK government will
target clean, green offshore wind to power more than 30% of British electricity
by 2030. Offshore wind energy is an abundant and renewable source of energy. Government
of United Kingdom has been working on framing various initiatives to capture
and utilize offshore wind energy. For instance, in 2022, the UK Minister for
Energy and Climate has signed a landmark agreement on renewable energy
cooperation with EU and North Seas countries. The initiative is expected to
support UK’s ambitious targets of increasing offshore wind fivefold to 50GW, by
2030. Such initiatives are likely to push the United Kingdom offshore wind
turbine market forward.
United Kingdom Offshore Wind Turbine
Market: Challenges
Capital-Intensive Projects:
Though possessing long-term benefits,
offshore wind energy throws immense challenges regarding the capital
investments required to set up offshore wind turbine infrastructure. The
offshore wind farm developers must consider the huge costs associated with the
fabrication of wind turbines and the transportation of the same to the offshore
sites. The construction of the submerged foundation for the wind turbines poses
additional challenges, given the hostile marine conditions and the superior
quality of a material and skilled set of manpower required to execute the same.
Various wind farm developers have experienced cost overruns during the
construction phase despite carefully analysing the project’s financial
feasibility before the initiation. Such capital-intensive nature of the project
is likely to hamper the growth of the United Kingdom offshore wind turbine
market.
Disruptions in Turbine Blade Supply:
Instead of improving the wind turbines'
efficiency and reducing the overall cost of offshore wind energy farm
infrastructure, the manufacturers have started fabricating larger turbine
blades (with a rating of 10+W). However, transporting such large-sized blades
to the offshore sites can be immensely challenging. Trailers which can carry
such blades are not only difficult to arrange but also very costly. Once the
blades reach the shores, supplying them to the wind farms within the sea from
the shores is another challenge, necessitating both skilled manpower and
appropriate equipment to transfer the blades to the proposed wind farm
location. Such supply chain challenges are likely to hamper the growth of the United
Kingdom offshore wind turbine market.
United Kingdom Offshore Wind Turbine
Market: Opportunities
Rising Annual Auctions:
The government stated in February 2022
that financing auctions under the Contracts for Difference (CfD) scheme will
now take place annually, rather than every two years. The CfD is the UK
government's premier programme for obtaining large amounts of sustainable
energy at the most affordable price for consumers. CfDs shield developers from
fluctuating wholesale power prices, encouraging investment in renewable energy
and lowering the cost of financing. Increasing the frequency of auctions is
expected to give more projects with opportunities to enter the pipeline,
thereby accelerating the decarbonisation of UK energy, and boosting the
benefits to the UK supply chain. Hence, with the rising number of annual
auctions, the demand for offshore wind turbine market is expected to boom
across the country.
Offshore Electricity Transmission (OFTO):
The Office of Gas and Electricity Markets'
(Ofgem) OFTO regime supports the government's renewable energy targets by connecting
renewable wind generation and putting consumers first. Ofgem is the UK
regulator for the electricity and downstream natural gas markets in Great
Britain. The sale of offshore transmission assets and the issuance of licences
necessary for the transfer of electricity produced by an offshore wind farm to
the onshore grid are managed by Ofgem through a competitive tendering process.
The Offshore Transmission Network Review (OTNR), an ongoing initiative from the
Department for Business, Energy, and Industrial Strategy (BEIS), aims to
strengthen the connection between offshore generation and the onshore
transmission network and to encourage the use of multipurpose interconnectors.
Market Segments
United Kingdom Offshore Wind Turbine market is segmented
into installation type, turbine capacity and region. Based on installation
type, the market is segmented into fixed and floating. Based on turbine
capacity, the market is segmented into Up to 3 MW, 3 MW to 5 MW, and more than
5 MW. Based
on region, the market is segmented into England, Scotland, Wales, and Northern
Ireland.
Market Players
Major
market players in the United
Kingdom offshore wind turbine Market
are Innogy Renewables UK, Nordex
SE, Iberdrola, S.A., Siemens Gamesa Renewable Energy, Scottish and Southern
Energy plc, GE Renewable Energy, Enercon GmbH, EDF Renewables UK, Orsted Power
(UK) Limited, Vattenfall AB.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic
Data
|
2018 – 2022
|
|
Estimated Year
|
2023
|
|
Forecast
Period
|
2024 – 2028
|
|
Quantitative Units
|
Revenue in USD Million, and CAGR for
2018-2022 and 2023-2028
|
|
Report
coverage
|
Revenue forecast,
company share, growth factors, and trends
|
|
Segments covered
|
By Installation Type
By Turbine Capacity
By Region
|
|
Regional
scope
|
England,
Scotland, Wales, and Northern Ireland
|
|
Key companies profiled
|
Innogy Renewables
UK, Nordex SE, Iberdrola, S.A., Siemens Gamesa Renewable Energy, Scottish and
Southern Energy plc, GE Renewable Energy, Enercon GmbH, EDF Renewables UK, Orsted
Power (UK) Limited, Vattenfall AB.
|
|
Customization
scope
|
10% free report customization with purchase.
Addition or alteration to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to
meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
|
Report Scope:
In this report, United Kingdom Offshore Wind Turbine Market
has been segmented into following categories, in addition to the industry
trends which have also been detailed below:
·
United Kingdom Offshore Wind Turbine Market,
By Installation Type:
o Fixed
o Floating
·
United Kingdom Offshore Wind Turbine Market,
By Turbine Capacity:
o Up
to 3 MW
o 3
MW to 5 MW
o More
than 5 MW
·
United Kingdom Offshore Wind Turbine Market,
By Region:
o England
o Scotland
o Wales
o Northern
Ireland
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in United Kingdom Offshore Wind Turbine Market.
Available Customizations:
United Kingdom Offshore Wind Turbine Market with
the given market data, Tech Sci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
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