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Asia-Pacific To Lead Growth Of The Personal Protective Equipment Market In The Wind Energy Industry by 2025

Frost & Sullivan's recent analysis forecasts that global personal protective equipment (PPE) revenues in the wind energy industry will reach $514.6 million by 2025, up from $409.2 million in 2020,...
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Asia-Pacific To Lead Growth Of The Personal Protective Equipment Market In The Wind Energy Industry by 2025

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Frost & Sullivan’s recent analysis forecasts that global personal protective equipment (PPE) revenues in the wind energy industry will reach $514.6 million by 2025, up from $409.2 million in 2020, growing at a CAGR of 4.7%. The industry growth is driven by an increase in wind farm installation and maintenance services and resultant employment opportunities, growing awareness about wind energy PPE, riskier work environments, and stringent regulatory compliances. Europe is the largest market for wind energy PPE, constituting nearly 44.4% revenue market share in 2020. However, with the expected increase in offshore and onshore farms and employment opportunities, the Asia-Pacific region is expected to have the highest growth rate and expand its revenues from $123.6 million in 2020 to $157.2 million in 2025.

(PRNewsfoto/Frost & Sullivan)

Wind energy PPE includes above-the-neck, respiratory, hand, foot, and fall protection, along with protective clothing. Among these, fall protection PPE is the largest and fastest-growing product segment. It is expected to have a CAGR of 5.1% from 2020 to 2025.

For further information on this analysis, The Global PPE Market in the Wind Energy Industry is being Driven by Government Incentives and Initiatives, please visit: http://frost.ly/5ax.

“COVID-19 stalled the demand for PPE in the wind energy industry due to the temporary delay in wind farm installations. With economies expected to slowly recover and a renewed interest in environment-friendly and sustainable sources of electricity generation, the demand for PPE in the wind energy industry is expected to rise,” said Anjan Roy, Senior Research Analyst, Chemicals, Materials and Nutrition Practice, Frost & Sullivan. “Offshore wind farms and electric power grids are expected to further enhance PPE usage. Offshore wind turbines can produce more electricity, owing to the steady wind, but the construction, repair, and maintenance require more manpower than the traditional onshore wind turbine, thus driving the usage of PPE in the industry.”

Roy added: “Tax and financial incentives along with favorable renewable portfolio standards (RPS) play a critical role in driving wind energy, correspondingly increasing the PPE usage across the world. In the United States, all construction on wind energy systems started by December 31, 2020, can either receive the federal Business Energy Investment Tax Credit (ITC) or the federal Renewable Electricity Production Tax Credit (PTC). In China, regulators approved subsidy-free projects of 11.4 GW of wind energy in 2020. And the UK has lifted its ban on subsidizing new onshore wind farms, allowing floating offshore wind projects, in a new auction scheme announced in June 2020.”

To expand revenue generation prospects, PPE manufacturers should explore these strategic recommendations:

  • Above-the-neck protection: Major manufacturers will grow by consolidating their positions in existing markets as well as through mergers and acquisitions in unexplored regions. The future for above-the-neck PPE lies in more customized and integrated solutions with multiple functionalities integrated into a single product. Technology will also drive the market with increasing preference for more advanced active communication ear muffs, custom-molded earplugs, protective eyewear, and smart helmets.
  • Respiratory Protection: The development of filter technology has resulted in the rising adoption of non-woven filters in respiratory protection that are expected to replace plastic filters. Increasing awareness of the ill effects of silica and the implementation of respirable crystalline silica standard (29 CFR 1926.1153) are expected to positively influence the volume demand for respiratory protection.
  • Protective Clothing: This segment is expected to be driven by reusable fire-resistant (FR) clothing because it is comparatively more cost-efficient. In addition, there is an increasing preference for inherent FR clothing over treated FR clothing because the protective capability of inherent clothing does not diminish over time, even after numerous washes.
  • Hand Protection: Product innovation and diversified product offerings will help market participants remain competitive. Technical innovation includes gloves made of high-performance polyethylene (HPPE), which offers superior grip and protection.

The Global Personal Protective Equipment (PPE) Market in the Wind Energy Industry is being Driven by Government Incentives and Initiatives is part of Frost & Sullivan’s global Chemicals, Materials and Nutrition

Worldwide Wind Energy PPE Industry to 2025 – Increase in Installation and Maintenance Services of Wind Farms is Driving Growth

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The “Global Personal Protective Equipment (PPE) Market in the Wind Energy Industry 2021 – Growth Being Driven by Government Incentives and Initiatives” report has been added to Research And Markets.com’s offering.

PPE in the wind energy industry was valued at $409.2 million in 2020.

The growth in the industry has been driven by an increase in installation and maintenance services of wind farms and resultant employment opportunities, growing awareness about wind energy PPE, riskier work environments, and stringent regulatory compliances.

Driven by high compliance rates, and stringent regulatory norms, Europe is the largest market of PPE for wind energy, constituting nearly 44.4% revenue market share in 2020. The total revenue is expected to increase from $181.9 million in 2020 to $229 million in 2025, at a CAGR of 4.7%.

With the expected increase in both offshore and onshore farms and an increase in employment opportunities, the Asia-Pacific is expected to have the highest growth rate growing at a CAGR of 4.9%. The Asia-Pacific is expected to grow from $123.6 million in 2020 to $157.2 million in 2025.

Fall protection PPE is the largest and is also the fastest-growing product segment. Fall protection PPE for wind energy is expected to grow at a CAGR of 5.1% from 2020 to 2025.

Major PPE manufacturers are expected to enter into partnerships or gain market share through mergers and acquisitions and consolidate their position by entering into the lucrative Asia-Pacific wind energy PPE market, which is currently dominated by regional players.

Key Topics Covered:

1. Strategic Imperatives

  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8T
  • The Impact of the Top Three Strategic Imperatives on Global PPE in Wind Energy Industry
  • Growth Opportunities Fuel the Growth Pipeline EngineT

2. Growth Opportunity Analysis, Global PPE in Wind Energy Industry

  • Key Findings
  • Global PPE in Wind Energy Industry Scope of Analysis
  • Global PPE in Wind Energy Industry Segmentation
  • Global Installed Wind Energy Capacity and Growth Rate
  • Global Added Wind Energy Capacity
  • Global Installed Wind Power Capacity By Regions
  • Global Installed Wind Power Capacity By Country
  • Global Onshore and Offshore Wind Energy Capacity, Investment and Installation Cost
  • Global Wind Energy Employment by Region, 2020
  • Occupational Hazards in Wind Energy Industry
  • Accidents in Wind Energy Industry
  • Regulatory Compliance
  • Top 10 Wind Turbine Manufacturers, 2020
  • Key Competitors for Global PPE in Wind Energy Industry
  • Key Growth Metrics for Global PPE in Wind Energy Industry
  • Distribution Channels for Global PPE in Wind Energy Industry
  • Growth Drivers for Global PPE in Wind Energy Industry
  • Growth Restraints for Global PPE in Wind Energy Industry
  • Forecast Assumptions, Global PPE in Wind Energy Industry
  • Revenue Forecast, Global PPE in Wind Energy Industry
  • Revenue Forecast by Product, Global PPE in Wind Energy Industry
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry
  • Competitive Environment, Global PPE in Wind Energy Industry
  • Competitive Analysis, Global PPE in Wind Energy Industry

3. Growth Opportunity Analysis, Above the Neck Protection

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Above the Neck Protection
  • Revenue Forecast, Global PPE in Wind Energy Industry, Above the Neck Protection
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Above the Neck Protection
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Above-the-Neck Protection
  • Competitive Environment, Global PPE in Wind Energy Industry, Above-the-Neck Protection
  • Competitive Analysis, Global PPE in Wind Energy Industry, Above-the-Neck Protection

4. Growth Opportunity Analysis, Respiratory Protection

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Respiratory Protection
  • Revenue Forecast, Global PPE in Wind Energy Industry, Respiratory Protection
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Respiratory Protection
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Respiratory Protection
  • Competitive Environment, Global PPE in Wind Energy Industry, Respiratory Protection
  • Competitive Analysis, Global PPE in Wind Energy Industry, Respiratory Protection

5. Growth Opportunity Analysis, Protective Clothing

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Protective Clothing
  • Revenue Forecast, Global PPE in Wind Energy Industry, Protective Clothing
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Protective Clothing
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Protective Clothing
  • Competitive Environment, Global PPE in Wind Energy Industry, Protective Clothing
  • Competitive Analysis, Global PPE in Wind Energy Industry, Protective Clothing

6. Growth Opportunity Analysis, Hand Protection

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Hand Protection
  • Revenue Forecast, Global PPE in Wind Energy Industry, Hand Protection
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Hand Protection
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Hand Protection
  • Competitive Environment, Global PPE in Wind Energy Industry, Hand Protection
  • Competitive Analysis, Global PPE in Wind Energy Industry, Hand Protection

7. Growth Opportunity Analysis, Foot Protection

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Foot Protection
  • Revenue Forecast, Global PPE in Wind Energy Industry, Foot Protection
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Foot Protection
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Foot Protection
  • Competitive Environment, Global PPE in Wind Energy Industry, Foot Protection
  • Competitive Analysis, Global PPE in Wind Energy Industry, Foot Protection

8. Growth Opportunity Analysis, Fall Protection

  • Key Growth Metrics for Global PPE in Wind Energy Industry, Fall Protection
  • Revenue Forecast, Global PPE in Wind Energy Industry, Fall Protection
  • Revenue Forecast by Region, Global PPE in Wind Energy Industry, Fall Protection
  • Revenue Forecast Analysis, Global PPE in Wind Energy Industry, Fall Protection
  • Competitive Environment, Global PPE in Wind Energy Industry, Fall Protection
  • Competitive Analysis, Global PPE in Wind Energy Industry, Fall Protection

9. Growth Opportunity Universe, Global PPE in Wind Energy Industry

  • Growth Opportunity 1 – Sustained Growth in Wind Energy to Boost Employment and PPE Market
  • Growth Opportunity 2 – Rise in Offshore Wind Farms and Electric Power Grid to Enhance PPE Usage

Offshore Wind Turbine Market Worth $68,869.3 Million by 2026 says P&S Intelligence

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With the increasing government initiatives for clean energy production, the global offshore wind turbine market is expected to grow to $68,869.3 million by 2026, from $24,683.3 million in 2019, according to P&S Intelligence. The generation of electricity from fossil fuels is leading to a rise in air pollution levels, which are, in turn, resulting in global warming. Moreover, as per BP plc, if the crude oil, natural gas, and coal reserves are exploited at the 2016 levels, then the current stocks are only enough for the next 50.6 years.

Due to the COVID-19 crisis, the offshore wind turbine market is witnessing subdued growth, as the lockdown initiated in numerous countries has halted the supply of wind tower components. Moreover, the ongoing projects for offshore windmill installation have also been postponed, for want of funding and laborers. However, once the situation betters and lockdown is lifted, the market is projected to recover.

The shallow-water (up to 30 meters) category, on the basis of water depth, dominated the offshore wind turbine market in the past, on account of the higher convenience this depth offers for the setting up of windmills, compared to transitional and deep waters. Moreover, maintaining and repairing shallow-water wind installations are also easier, which is why this depth is preferred for establishing wind power plants.

In the coming years, fixed will be the larger bifurcation in the offshore wind turbine market, based on installation. This is because fixed windmills are not only cost-effective, but also easier to commission and decommission. In addition, strong currents, waves, and winds are not that impactful on fixed installations, which are able to stay where they are, under such conditions.

The 3 Megawatt (MW)-to-5 MW classification, under the turbine capacity segment, contributes the highest revenue to the offshore wind turbine market, and this situation is predicted to be unchanged in the immediate future. This is because turbines of this power rating have a higher electricity generation capacity, but lower maintenance costs, which is why they are garnering heavy investments from private and public enterprises.

Asia-Pacific (APAC) would account for a considerable share in the offshore wind turbine market in the years to come because of the high dependence on fossil fuels for electricity. As this has raised air pollution in APAC to alarming levels, governments of regional countries are taking initiatives to generate clean energy, including installing wind towers on seas and lakes. For instance, the Chinese government is targeting a 400 Gigawatts (GW) wind power capacity by 2030, for which several provinces, such as Fujian, Jiangsu, and Guangdong, have already reached their individual targets.

The most prominent firms in the global offshore wind turbine market are Envision Energy, MHI Vestas Offshore Wind A/S, Nordex SE, Ocean Breeze Energy GmbH & Co. KG, Nexans S.A., Sinovel Wind Group Co. Ltd., Ørsted A/S, Xinjiang Goldwind Science Technology Co. Ltd., Mingyang Smart Energy Group Co. Ltd., General Electric Company, and Siemens Gamesa Renewable Energy S.A.

Wind Is Not Growing Fast Enough For EU Economy To Go Climate-Neutral

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Europe installed 14.7 GW of new wind energy in 2020. 80% of this was onshore wind. Europe now has 220 GW of total wind energy capacity. But Europe is not building enough new wind to deliver the Green Deal and climate neutrality: the EU is set to build 15 GW per year over the next 5 years – it needs 27 GW per year to deliver the 55% emissions reductions by 2030. Permitting remains the main problem. Energy intensive industries aiming to decarbonise their activities are concerned.

Today WindEurope published statistics on wind energy in Europe in 2020. Europe built 14.7 GW of new wind farms in 2020. This was 19% less than what was expected before COVID. 80% of the new capacity was onshore wind. The Netherlands built the most (2 GW, mostly offshore) followed by Germany, Norway, Spain and France. The EU27 accounted for 10.5 GW of the new capacity.

Wind was 16% of all the electricity consumed in Europe in 2020. It was 27% in Germany and the UK, 22% in Spain – and 48% in Denmark.

Looking ahead, WindEurope expects Europe to build 105 GW new wind farms over the next 5 years, over 70% of which will be onshore. But this is well below the pace needed to deliver the Green Deal and climate neutrality. The EU27 are set to build only 15 GW per year of new wind over 2021-25, whereas they need to build 18 GW per year over 2021-30 to deliver the existing 2030 EU renewables target and 27 GW per year to deliver the higher target that’s now coming with the 55% climate target.

The main problem is permitting. Permitting rules and procedures are too complex, and government at all levels are not employing enough people to process permit applications. The result is it’s taking too long to get permits for new projects, permit decisions are being challenged in courts and developers are deterred from pursuing new projects because of the risks and costs involved. Governments need to take urgent action to address this.

Meanwhile the number of older wind turbines reaching the end of their operational life is increasing. In 2020 Europe decommissioned 388 MW of wind energy. Many decommissioned wind farms are being repowered but not enough of them. Obstacles to repowering resulted in Austria ending 2020 with less wind capacity than it had at the start of the year. In the next five years 38 GW of wind farms will reach 20 years of operation and require a decision on their future: repowering, life-time extension or full decommissioning.

Germany which has long been the engine of the wind energy in Europe only installed 1.65 GW of wind farms last year, its lowest in a decade. Many of its wind auctions were undersubscribed. Permitting has been the main problem, but the number of new wind farm permits actually increased last year. This suggests a recovery is ahead, but Germany remains far off from what it needs to install to meet its renewables targets. More encouragingly, Poland built a significant amount of new onshore wind and has committed now to a major build-out of offshore wind. France saw further steady expansion of onshore wind and will start installing its first commercial offshore wind farms in the coming years.

Giles Dickson, WindEurope CEO, said: “Wind is now 16% of Europe’s electricity. But Europe is not building enough new wind farms to deliver the EU’s climate and energy goals. The main problem is permitting. Permitting rules and procedures are too complex. There are not enough people working in the permitting authorities to process permit applications. Governments have to address this. Otherwise the Green Deal is at risk.”

And it’s not just the wind industry that’s worried. So are Europe’s core manufacturing industries that are looking to wind energy to support their decarbonisation goals. Steel and chemicals are two energy-intensive sectors that both want more wind farms, to help electrify their processes or to power them with renewable hydrogen. Their competitiveness depends on adequate amounts of affordable wind energy.

Marco Mensink, Cefic Director General, said: “Renewable electricity including wind power is a cornerstone in the decarbonization of the Chemical industry in Europe. We simply need it, we need it at a competitive price and we need more, both for direct electrification and to fulfill our central role in the hydrogen economy. WindEurope’s new figures clearly reveal a problem in the future supply as simply not enough capacity is added. The sheer volume needed by different industries, who all will increase electrification at the same time and increase demand requires targeted action. A specific focus on electrification in industry, sectoral roadmaps to inform and strengthen the Commission’s Industrial Ecosystems model, greater policy coherence across the board and adaptive state aid and competition law frameworks to enable the new models of cross-sector cooperation which President von der Leyen has called for are all needed.”

Axel Eggert, EUROFER Director General, said: “The EU needs to speed up significantly the installation of wind capacity that provides affordable electricity for Europe’s green transition. Wind energy and steel already today form a critical ecosystem in Europe and will so even more on Europe’s way to carbon neutrality and circularity. Our industry is eager to deliver not only 100% recyclable, perfectly circular steel to its clients, including the wind industry, but also steel that is CO2 neutral. For this, we need wind energy to help providing the 400 TWh of electricity that our industry requires by 2050, an amount comparable to the electricity consumption of France.”

GWEC: China Installed Half Of New Global Offshore Wind Capacity During 2020 In Record Year

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  • China leads the world in new annual offshore wind installations for the third year in a row with over 3 GW of new offshore wind capacity in 2020.
  • Steady growth in Europe, driven by the Netherlands and Belgium, accounts for majority of the remaining new offshore wind installations in 2020, along with the US and South Korea.
  • The offshore wind industry installed just over 6 GW of new capacity globally in 2020, nearly the same levels as the previous year despite the impacts of COVID-19 and the second-best year for the sector.
  • The UK remains in the top spot globally for total offshore wind capacity, while China has now overtaken Germany to become the world’s second largest offshore wind market.
  • Total global offshore wind capacity is now over 35 GW, helping the world avoid 62.5 million tonnes of CO2 emissions – equivalent to taking over 20 million cars off the road – and providing around 700,000 jobs globally over the projects’ lifetimes.

According to the latest data released by GWEC Market Intelligence, the global offshore wind industry had its second-best year ever in 2020 installing over 6 GW of new capacity, keeping growth on track despite the impacts of COVID-19 felt in other energy sectors. This growth was driven by a record year in China, which lead the world in new annual offshore wind capacity for the third year in a row, and installed over half of the new offshore wind capacity globally last year.

Steady growth in Europe accounted for the majority of remaining new capacity, led by the Netherlands which installed nearly 1.5 GW of new offshore wind in 2020, making it the second-largest market for new capacity in 2020 after China.

Other European offshore wind markets also experienced stable growth last year, with Belgium (706 MW), the UK (483 MW), and Germany (237 MW), all installing new capacity in 2020. The slowdown of growth in the UK is due to the gap between the Contracts for Difference (CfD) 1 and CfD 2. In Germany, the slowdown is primarily caused by unfavourable conditions and a weak short-term offshore wind project pipeline.

The only new floating offshore wind capacity recorded in 2020 was also in Europe, with 17 MW installed in Portugal.

Outside of China and Europe, two other countries recorded new offshore wind capacity in 2020: South Korea (60 MW) and the US (12 MW).

Overall, global offshore wind capacity now exceeds 35 GW – a 106 per cent increase over the past 5 years alone. China has now surpassed Germany in terms of cumulative installations, becoming the second-largest offshore wind globally with the UK remaining in the top spot.

Feng Zhao, Head of Market Intelligence and Strategy at GWEC commented: “The continued growth of the offshore wind industry globally throughout the pandemic is a testament to the resilience of this booming industry. Although China was hit first by the COVID-19 crisis, the impacts on the offshore wind sector were minimal, resuming ‘busines-as-usual’ as early as March 2020. China’s record-breaking growth is expected to continue in 2021, driven by an offshore wind installation rush to meet China’s Feed-in-Tariff deadline by the end of this year”.

“While Europe remains the largest offshore wind market globally, Asia Pacific will play an increasingly important role driving industry growth as major economies such as Japan and South Korea have recently established ambitious offshore wind targets. The US will also become an increasingly important market for offshore wind, as the new administration has made it clear they are working to accelerate growth of this crucial industry”, he added.

Alastair Dutton, Chair of Global Offshore Wind Task Force at GWEC added: “Offshore wind is increasingly cementing its role as one of the most crucial technologies to decarbonise our energy system and achieve net zero. Current global offshore wind capacity has helped our society avoid 62.5 million tonnes of carbon emissions – equivalent to taking over 20 million cars off the road. The socioeconomic benefits of offshore wind are also more important than ever as countries develop their strategies for a green economic recovery, with current offshore wind capacity already providing around 700,000 jobs globally over the projects’ lifetimes”.

“Yet, we are only seeing the tip of the iceberg when it comes to offshore wind’s massive potential. The World Bank Group reports that there is over 71,000 GW of offshore wind potential globally with current technology, and tapping into this resource will be key to keep global warming below 1.5°C pre-industrial levels, while generating significant economic benefits. To realise this potential, industry and government collaboration will be key, along with stable policies to provide a long-term horizon for industry growth. Accelerating the commercialisation of floating offshore wind this decade will also be crucial to open new doors for the sector, and capture more wind resource than ever thought possible”, he added.

ACCIONA And SSE Renewables Sign Agreement For Offshore Wind Development

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ACCIONA and SSE Renewables, part of UK FTSE-listed SSE Plc, have signed an exclusivity agreement to develop offshore wind power projects in Spain and Portugal. The companies will also jointly explore further opportunities in other potential markets.

ACCIONA and SSE Renewables will establish a 50-50 joint venture (JV) that will combine ACCIONA’s strength as developer and operator of onshore renewable facilities (wind and photovoltaic, mostly) with SSE Renewables’ skills and experience in the development, construction and operation of some of the world’s leading offshore wind farms.

ACCIONA will also provide its grid integration capabilities, its energy management technology through its Renewable Energy Control Center (CECOER) and its know-how in engineering applied to offshore wind turbines.

SSE Renewables is a leading developer, constructor, operator and owner of offshore wind energy projects across the UK and Ireland. It has an operational offshore wind portfolio of 487MW and the largest offshore wind development pipeline across the UK and Ireland at over 6GW.

The company is currently constructing the world’s largest offshore wind farm, the 3.6GW Dogger Bank Wind Farm in the North Sea, a JV with Equinor. It is also building Scotland’s largest offshore wind farm, the 1.1GW Seagreen Offshore Wind Farm in the Firth of Forth, a JV with Total.

“After successfully developing a leading global position in onshore wind and photovoltaic technologies, a partnership with SSE Renewables will allow us to accelerate our entry into the offshore wind market, where we also see great potential,” said Rafael Mateo, CEO of the Energy business unit of ACCIONA.” It is a natural step forward in our strategy of providing the best possible alternatives for clients looking for clean energy solutions.”

Jim Smith, Managing Director of SSE Renewables said: “I am delighted to be entering into this exclusivity agreement with ACCIONA. Partnering with a well-established Spanish renewable developer will enable SSE Renewables to bring its offshore wind expertise to help Spain and Portugal achieve their ambition to reach carbon neutrality by 2050. It also demonstrates our intent to build our strong wind energy pipeline beyond the UK and Ireland.”

Enterprize Energy Commences Initial Survey Work For Thang Long Project

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Enterprize Energy, a pioneering offshore wind developer, has today announced the commencement of initial marine surveys off the coast of Binh Thuan province for its 3.4GW Thang Long Offshore Wind project, the largest offshore wind farm to be granted a survey licence by the Vietnamese government.

Vietnam is set to become a clean energy leader in the APAC region, targeting 21% installed renewable energy capacity by 2030. With an estimated 160GW of wind energy potential in the region’s waters, the roll out of significant offshore wind projects will be key to meeting this target. However, to ensure the local economic benefits of Vietnam’s transition from fossil fuels is fully realised, it will be crucial for developers to work directly with local supply chains and ensuring projects are brought online in a manner which recognises, and works together with, existing crucial coastal activity, such as Vietnam’s tourism and fishing sectors.

Enterprize Energy has engaged local marine services providers Hai Duong Co Ltd (Haduco), a Vietnamese Marine on-shore/offshore and logistic services provider that works across Southeast Asia, and the Thien Nam Positioning Company. They will supply vessels, personnel, and equipment to explore the bathymetry of the area and identify seabed features such as sandwaves, reefs and shipwrecks. From this initial survey work, Enterprize will focus its more in-depth geophysical surveying on areas of the seabed with good construction potential and high wind energy yield.

David Wotherspoon, Development Director for Enterprize Energy, commented: “As the largest offshore wind project to be granted a survey license, we are proud to work with our Vietnamese supply chain, government and provincial authorities to characterise the potential our allocated area has for the delivery of offshore wind energy for Vietnam.

“We have completed a full year of LIDAR wind data measurement which has confirmed the high potential of the wind resource in this area.  Through these initial survey works, we will confirm which locations we will focus on for more intensive geophysical and geotechnical work in the near future. We can then optimise our development locations to ensure that we are harnessing the best wind resource off the coast of Binh Thuan, working closely with local communities and existing sea area interests in the surrounding region throughout the development process.”

“We are pleased that we have been able reach agreement with the fishing communities on a policy which was recently approved by the Binh Thuan People’s Committee. This example of closely working with the communities dependant on the sea area sets an example of good practice to be followed in the development of offshore wind in Vietnam.”

The first 600MW phase of the project is due to come online by the end of 2025, with further phases developed on a rolling basis, subject to grid availability.

Wood Mackenzie: Floating Offshore Could Be Largest Frontier For Wind Power In Asia Pacific

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Floating offshore could be the next frontier in wind power development in Asia Pacific, says Wood Mackenzie.

A significant market for floating offshore technology is emerging in Asia. Developers in Japan, South Korea and Taiwan have announced plans to develop key demonstration projects, although the scale of deployment is still limited compared to conventional fixed-bottom technology. Floating offshore wind accounts for just 6% capacity of the 26 gigawatts (GW) of new offshore capacity expected in the current decade in Asia Pacific excluding China.

Wood Mackenzie principal analyst Robert Liew said: “This 1.56 GW of new floating offshore capacity in Japan, South Korea and Taiwan will require investments of at least US$8 billion. If we consider the additional 9 GW project pipeline in early planning stages, total investment opportunities could be worth up to US$58 billion.”

Maintaining power supply is a key challenge for these markets as legacy thermal plants reach the end of their project life and opportunity for new-build coal and nuclear are severely limited. The three Northeast Asian markets face projected thermal and nuclear capacity retirements totalling 89 GW from 2020 to 2030.

Liew said: “Governments in these markets are increasingly looking to renewables to fill the supply gap, but due to land constraints, scalable options are limited. Floating offshore wind is starting to gain more attention but the high cost remains a major barrier to widespread adoption of this technology.

“To ensure the long-term sustainability of floating offshore wind, prices must come down significantly to at least be competitive with new-build gas power.”

With a limited track record and only 21 megawatts (MW) of operating floating demonstration units, there is high uncertainty over project costs in Asia Pacific markets. For now, the Japanese government estimates that current capex costs of floating offshore can be as high as U$10 million per MW but could be commercially feasible if brought down to US$4 million/MW, compared to grounded offshore capex cost of US$2-3 million/MW and average Asia Pacific onshore wind capex cost of US$1.5 million/MW by 2030.

Wood Mackenzie expects average capex costs of floating offshore wind plants in the three pioneering markets to decline by around 40% to US$2.6 – 4 million per MW by 2025-2030.

Despite the cost challenge, governments in Japan and South Korea have set out support policies for the sector. In Japan, a feed-in tariff is available for floating projects compared to grounded offshore projects which are moving to price discovery through auctions. A small-scale 22-MW floating wind auction in the Goto Islands is also testing whether prices can be lower than the current feed-in tariff. In South Korea, floating offshore projects can be awarded higher weightings of renewable energy certificates depending on the distance between interconnection facilities. 

Liew said: “With enough government support, developers will be more willing to bet on floating wind. Building a firm pipeline of floating projects will give the sector more forward visibility, which in turn will attract even more investors.”

Part of the buy-in from government is the long-term vision to establish a domestic floating offshore wind supply chain that will benefit the local economy. Floating offshore requires more vessels to install turbines compared to mainstream grounded offshore projects. This is attractive to governments that historically had a large domestic maritime sector. 

“The Japanese and Korean governments are keen to establish a floating offshore supply chain hub for the region and potential future exports to other markets. This could also contribute significantly to lowering costs,” Liew added.

He said: “Floating offshore represents perhaps the largest frontier for wind power in Asia Pacific in the long-term. There is significant future upside as almost all markets in Asia Pacific have coastlines and floating offshore can unlock wind resources near coastal cities even in low wind speed areas. Despite the limited scale today, floating offshore wind offers almost limitless potential.” 

GWEC India And MEC+ Team Up To Catalyse Growth In India’s Wind Industry Through Enhanced Knowledge Partnership

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The Global Wind Energy Council India (GWEC India) and MEC Intelligence (MEC+) announced today that the two organisations have signed a Memorandum of Understanding (MoU) to work together on building out market intelligence and evidence-driven policy recommendations to accelerate India’s energy transition. The partnership will aim to address key bottlenecks slowing down wind market growth, and illustrate the potential for new growth opportunities such as offshore wind and corporate procurement of renewable energy.  

India is currently the fourth-largest onshore wind market in the world and an important economic actor in the global energy transition. Over the last two years, the sector has witnessed a slowdown in wind energy growth, due to a raft of policy, regulatory and infrastructure challenges. Nonetheless, India maintains ambitious wind capacity targets and recognises the crucial role that wind plays in its energy matrix and economic recovery from COVID-19.

This partnership comes at a critical time to unlock India’s wind growth and business opportunities, and will combine GWEC India’s global experience and industry network with MEC+’s issue-driven understanding of the market as well as expertise in growth drivers for supply chain, technology and business models.

Ben Backwell, CEO at GWEC, commented: “Although the Indian government has high ambitions for the country’s energy transition, the market reality needs to match these ambitions. GWEC India’s mission is to renew momentum around wind power development to not only accelerate the decarbonisation of India’s energy system, but also to create local jobs and investment opportunities to power a green recovery. Combining GWEC’s world-class experience in building up emerging wind markets with local partner MEC+, which has extensive expertise in the Indian context, we will be able to dive deeper than ever before into key challenges in this crucial market. This partnership will not only provide the industry with the knowledge they need to do business in India but will also help ensure that the government’s high ambitions are bolstered by the necessary regulatory frameworks to drive growth”.

Sidharth Jain, Founder and CEO at MEC+, added: “India’s transition to renewable energy will be pivotal for the global climate change agenda, and over the last few years, we have seen record low prices, innovative business models and increasingly higher ambitious targets. The market needs investment in technology as well as supply chain, and long-term clarity on policy is needed to exploit the 50 GW of high wind resource potential in the country which is still untapped. We are excited to embark on this journey to create and share crucial insights on the wind industry in India. We envision that GWEC India and MEC+ will jointly create an authoritative engagement platform in India on the topic of wind industry. GWEC India and MEC+ aim to bring key challenges into the spotlight, support the government in mobilising the resources to reinvigorate the industry, and create a concerted voice for wind in India”.

The MoU builds on the success of the report, ‘India Wind Outlook Towards 2022’, published jointly in 2020 which highlighted market challenges and policy reforms needed to restore wind market growth. Under this enhanced partnership, MEC+ will join GWEC India as a member, further enabling the association’s capacity to improve the environment in India for wind sector growth.

The two organisations will continue to publish a flagship annual report on India’s wind market status and outlook, as well as deep-dives into key system transformation topics. The 2021 edition, expected to publish in April 2021, will spotlight the shift to hybrid tenders, opportunities for corporate procurement of renewable energy and how India can become a wind power manufacturing hub to drive a green recovery.

BayWa r.e. Acquires High Constellation Wind Farm In The UK

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BayWa r.e. increases its onshore wind pipeline in the UK with the acquisition of High Constellation Wind Farm in Scotland from Blue Energy.

The proposed ten turbine wind farm is located on the Kintyre peninsula, roughly 20km South of Tarbert and 30km North of Campbeltown, in Scotland. Once installed, it will have a capacity of approximately 50 MW.

Christine McGregor, Head of Commercial at BayWa r.e. UK Limited commented: “We are delighted to add this project to our portfolio in the UK and to continue our successful role in project development in Scotland. Blue Energy has been fantastic to work with, and with them, we are perfectly positioned to take the project into the next development phase.” 

Blue Energy will continue to support BayWa r.e. in the development process and ensure an effective handover of the project.

Simon Foy, Commercial Director at Blue Energy, added: “We’re very pleased about this first successful collaboration with BayWa r.e. and look forward to establishing an ongoing relationship with their team. We are currently exploring possibilities for future collaboration on other large-scale wind farms in Scotland.”

Blue Energy were advised by PKF (Andy Thornhill and Richard Harris). Andy Thornhill, Corporate Finance Director at PKF commented: “It has been a pleasure to work with the Blue Energy team on this transaction and I am thrilled that with BayWa r.e. another significant, post subsidy, onshore wind project will be taken forward in Scotland.”

In November this year, Glasgow will host the 26th UN Climate Change Conference of the Parties (COP26), which has already been described by US climate envoy John Kerry as the “last best chance” the world has for tackling the climate crisis.

“BayWa r.e. is fully committed to helping to drive forward the growth of renewables in the UK and Ireland.” added Gordon MacDougall, Managing Director at BayWa r.e. UK Limited “To date, we have developed projects in the UK, with an installed capacity of 685 MW, and manage over 2400 MW of wind and solar capacity. All helping to contribute to the UK government’s commitment to reach net zero carbon emissions by 2050. But we must now see the renewable transition move forward at much greater pace if we are to stand any chance of averting the most catastrophic effects of climate change.”