How heavily will Asia Pacific’s offshore wind future hinge on China, and what barriers are slowing down development in the wider region?
In Aegir’s Wavelength Intelligence Briefing last week, our Senior Research Analyst Simon Engfred Schlichting and Chief Executive Editor Darius Snieckus discussed how this dynamic region can reach its full potential in the global energy transition.
Some of the key take-aways:
- APAC will be vital for the global offshore wind build-out – both in terms of added capacity and through the expected development of an influential regional supply chain – and could see around 250 GW of installed offshore wind capacity by 2035.
- China leads development in the region and will continue to do so, but a ‘chasing pack’ of emerging markets, e.g., South Korea, Japan, Australia and especially Taiwan, is taking significant steps and could account for 15% of the global offshore wind capacity worldwide by 2040, according to Aegir’s calculations.
- However, multiple hurdles are slowing down the chasing pack, amongst others; complex and unclear regulatory regimes, lack of clear route to market for future offshore wind power production, and grid congestion. So, even though several new APAC offshore wind markets are on track to reach commercial take-off in the late 2020’s, it currently looks unlikely that they will hit their 2030 build-out targets.
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🎙️Aegir Wavelength is our digital event-series, focusing on delving into key talking points, market developments and thought-leadership in the offshore energy transition.
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