Global offshore wind power has huge growth potential despite short-term challenges from higher costs and interest rates. According to the International Renewable Energy Agency (IRENA), the world added 8.9 GW of offshore wind power in 2022, down 55% YoY as China’s feed-in-tariff (FiT) policy for offshore wind ended in 2021. The Global Wind Energy Council (GWEC) predicts that growth in global offshore wind power capacity will rebound in 2023/24 with an additional capacity of 18 GW p.a. (double the increase in capacity in 2022). From 2025 onwards, GWEC expects global offshore wind power capacity to grow by ~30 GW p.a (five times the annual increase prior to the Covid-19 pandemic). This is driven by a declining levelized cost of energy (LCOE – see page 5) and supportive policies across the globe. Taiwan maintained a favorable FiT policy for renewables in 2023 and even increased the FiT for offshore wind by 0.1% to TWD4.51/kWh (15 US cents/kWh). In mid-November 2023, the UK government increased the maximum bidding price for offshore wind by 66% to £73/MWh (9.3 US cents/kWh).

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