Reading Time: 2 minutes
Offshore wind installations are rapidly accelerating worldwide, necessitating robust infrastructure to transport generated power onshore and into the electrical grid. This surge has ignited a booming demand for offshore substations, particularly in Europe. According to recent research by Rystad Energy, 137 substations are slated for installation offshore continental Europe over the next decade, requiring a total investment of approximately $20 billion.
The majority of these facilities, over 120, are scheduled for deployment between 2024 and 2030, accounting for around $18 billion in investment. Annual expenditures on offshore substations are projected to climb steadily through 2030, rising from an average of $1.4 billion per year from 2015 to 2023 to an anticipated peak of $8.4 billion by the end of the decade.
Offshore substations play a critical role in the offshore wind sector by gathering power from turbines, increasing voltage, and transmitting electricity to shore. Key components include switchgears, transformers/converters, reactive power compensation systems, and earthing systems. They are particularly advantageous for projects exceeding 200 megawatts (MW) and situated more than 15 kilometers offshore, minimizing transmission losses and supporting initiatives like electrifying offshore oil and gas platforms.
The upsurge in substation demand is driven by the escalating scale and distance of offshore wind projects. Projects surpassing 1 gigawatt (GW) in capacity often require multiple substations. Many European nations have set ambitious offshore wind installation targets, positioning the continent as a focal point for substation development. In 2024 alone, Europe is set to inaugurate eight new offshore substations, double the number from the previous year.
While 2024 will see new substations limited to projects within 50 kilometers of the coast, later years are expected to witness a notable increase in installations beyond this range, spurred by advancing offshore wind technologies. This includes the burgeoning field of floating wind turbines, which are positioned far offshore and may necessitate floating substations by the early 2030s.
“We anticipate a substantial rise in offshore substation expenditures this decade, driven by expanding installed capacities in Europe and the anticipated rise of floating wind technology,” noted Petra Manuel, senior offshore wind analyst at Rystad Energy.
Offshore substations are typically comprised of two main components: the topside, housing the primary electrical system and auxiliary systems, and the foundation, which supports the topside structure. Jackets, fixed to the seabed with piles at each leg, have been the predominant foundation type due to their ability to support larger structures. However, some projects employ monopiles, driven directly into the seabed.
As Europe continues to lead in offshore wind development, the foundation concepts for substations beyond 2024 remain under exploration, reflecting ongoing innovations in the sector.
