SEA-TITAN project related news

Asia-Pacific Offshore Wind Portfolio Excluding China Exceeds 5 GW

With a supportive policy framework in place and more than 5 gigawatts (GW) of approved projects to be put online by 2025, Taiwan is expected to connect more than 10 GW of offshore wind capacity by 2030.


Developers are taking advantage of Taiwan’s geographic advantages: wind conditions along the Taiwan Strait are among the best in the region, and selected wind sites are close to major energy demand areas with available transmission infrastructure.

Denuclearization and closure of coal plants are key factors in achieving Taiwan’s 2030 renewable energy target. Wood Mackenzie expects offshore wind and photovoltaic solar energy to increase to compensate for capacity loss by multiplying wind power generation capacity by 10 in 2028.

Japan will see exponential growth with 4.5 GW of new capacity from 2019 to 2028. The government has designated 11 sites in preparation for bidding that will begin in 2020, paving the way for the start of large-scale offshore projects.

However, the cost of LCOE in Japan remains the highest in the region. Compared to other markets, Japan still faces high labor and construction costs, a long process of environmental impact assessment and strict local requirements. Despite these barriers, the government is actively exploring ways to reduce offshore wind energy costs and encourage more domestic companies to participate in this emerging sector.

The South Korean government has designated offshore wind as a key sector in its 2030 renewable energy plan. Despite low wind speed conditions, developers are moving forward with floating foundation marine projects and the market already has more than 3.5 GW of floating marine projects in the pipeline in most markets in the region.

Another market in the spotlight is Vietnam. Developers are rushing the construction of at least 0.5 GW of projects to take advantage of an offshore feed-in tariff that will expire in 2021.

The success of offshore wind energy in APAC, excluding China, will depend on how low the costs are. Currently, the average offshore wind LCOE in APAC, excluding China, remains 70% higher than other renewable energies, but the trend of auctions, technological changes and the development of regional offshore supply will inevitably lead to lower costs. As such, Wood Mackenzie expects more than 19 GW of new offshore capacity to be added in the next 10 years, making it a key region for the global development of offshore wind energy.



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