Record 12.3 GW of offshore wind reaches FID in 2023

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A record 12.3 GW of offshore wind projects reached final investment decision (FID) in 2023, a significant improvement from 2022, when only 0.8 GW of offshore wind secured investment, according to TGS-4C Offshore's Global Market Overview, announced this week.

The new year could see another record, with up to 13 GW possible, TGS-4C Offshore says.

In 2023, eight European projects totalling 9.3 GW achieved FID, including the 2.9-GW Hornsea 3 in the UK at the end of the year. In the US, the 704-MW Revolution Wind project reached the investment stage and a further 2.3 GW closed in Taiwan and South Korea.

"Despite ongoing project delays and cancellations, 2023 has still managed to produce record progress in offshore wind. With high activity and a significant year of offtake auctioning expected in 2024 as countries work to hit their 2030 installation targets, a positive scene is being set for the next twelve months, and this will translate into record construction activity later in the decade," said Richard Aukland, director of research at TGS-4C Offshore.

Offtake activity fell almost 2 GW to 9.5 GW in 2023, mainly due to no offshore wind participation in the UK's contracts for difference (CfD) auction, but is ramping up with five auctions currently underway in the US. There are 47.5 GW of offtake auctions scheduled for 2024, of which 40 GW in Europe.

The schedule for lease rounds is also busy, the market intelligence firm says, after 43.8 GW of sites were awarded in 2023, of which one third was for floating wind. Leases of 33.5 GW are being put up for auction in Australia, Belgium, Colombia, Denmark, Estonia, Finland, France, India, Japan, Lithuania, Netherlands, Norway, Portugal, Spain, the UK, Uruguay and the US.

In terms of prices, offtake contracts have become more expensive. The average price of EUR 105 (USD 115) per MWh in 2023 reflects the effects of recent inflation, supply chain constraints and interest rates.

(EUR 1 = USD 1.095)

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