Interesting Offshore Energy Update May 2023

09-05-2023 IRO news

Interesting Offshore Energy Update May 2023

This “Offshore Energy Update” by Richard Brakenhoff is the second release as an independent analyst. 

In this update a multitude of topics are discussed:

  • From the demand of oil to needed investments in renewable energy
  • From the development of the global greenhouse gas emissions to the availability of minerals which are critical for the energy transition

Offshore Energy Update May 2023

Please click here for this Update.
It is well worth reading the full update.

Some challenging quotes:

  • “According to IRENA’s World Energy Transitions Outlook 2023 investments in renewable power generation has to jump from nearly USD 0.5 trillion in recent years to USD 1.3-1.4 trillion per annum until the year 2050. In recent years these investments consisted out of solar power (USD 260bn per annum), onshore wind (USD 140bn per annum), offshore wind (USD 35bn per year), and other (USD 20bn per year) such as hydro, bioenergy, marine, geothermal, etc. “
  • “According to IRENA and GWEC total installed offshore wind capacity should be 2,000GW in 2050 to meet the NZE scenario. Whereas total offshore wind capacity rose from 3GW in 2010 to 36GW in 2020 and 64GW in 2022, it must jump to 330GW in 2030 and 2,000GW in 2050. DNV estimates that around 15% or 300GW of total offshore wind capacity could consist of floating wind turbines.”
  • “In 2022 78GW of new onshore and offshore wind capacity was installed globally, which was less than the record level of 95GW in the year 2020. However, if the world wants to realise its climate goals, much more wind capacity should be installed per year in the coming decades. According to GWEC the amount of installed capacity should climb to 157GW in 2027. Currently the wind turbine manufacturers maximum capacity is only 163GW, i.e. they should raise their maximum capacity in the coming years. [….] Taking into account the disappointing financial performance of the turbine manufacturers, it is questionable how much financial room they will get from investors to increase their production capacity in the coming years.”