Offshore Wind: Where Innovation Meets the Deep Blue Frontier
—Tapping the Ocean’s Energy: Pioneering Offshore Wind Power          9 August 2023, Monica Cai monica.cai@crm.szc-group.com

A support vessel is seen next to a wind turbine at the Walney Extension offshore wind farm operated by Orsted off the coast of Blackpool, Britain September 5, 2018. REUTERS/Phil Noble/File Photo

Introduction: The Rise of Renewable Energy
With the ever-growing demand for energy in the face of escalating environmental concerns, renewable energy sources have taken center stage globally. Among these, wind energy, as a clean and renewable resource, is gaining increasing attention. While onshore wind has been prevalent, the emergence of offshore wind farms presents a significant advancement in harnessing wind’s potential.

I. Offshore Wind Energy: A Sustainable Frontier
Offshore wind energy exhibits a striking energy efficiency advantage over onshore wind farms. Studies suggest that the energy yield from offshore wind resources can be 20% to 40% higher compared to land-based wind farms. This increased efficiency is attributed to the stronger and more consistent wind patterns experienced over open waters.

II. Global Offshore Wind Energy Development Overview
According to the World Offshore Wind Forum (WFO), by the end of 2020, the cumulative capacity of offshore wind energy installations reached 32.5 GW, marking a 19.5% growth from the previous year. The European continent has emerged as a leader in this arena, with an accumulated capacity exceeding 25.0 GW. Notable growth was also witnessed in China, where the nation’s installed capacity matched that of Germany, suggesting a promising trajectory for offshore wind energy development. Predictions from the Global Wind Energy Council (GWEC) anticipate China’s ascent as the largest offshore wind energy market globally, surpassing the UK.

III. Cost Reduction and Investment Trends
Over the years, the cost of offshore wind energy has been a pivotal concern. However, substantial strides have been made in cost reduction.

According to the International Renewable Energy Agency, the cost of offshore wind energy plummeted by 60% between 2010 and 2021, rendering it increasingly competitive with conventional energy sources. Factors such as supportive policy frameworks and innovative financing models have played a crucial role in making offshore wind projects economically viable. Additionally, the technological advancements in wind energy infrastructure have led to decreased operational costs and enhanced overall competitiveness.

IV. Challenges in Offshore Wind Industry
Despite the promising potential of offshore wind energy, the industry faces several challenges that warrant attention:
a. Time-Consuming Development: The dynamic nature of offshore environments, influenced by factors such as tides, waves, and tropical cyclones, contributes to the time-consuming nature of offshore wind projects. The need for adaptable strategies in rapidly changing conditions can extend development timelines significantly.

b. Persistent Cost Issues: Offshore wind projects are associated with substantial upfront costs and ongoing operational expenses. These expenses include not only the manufacturing and installation of wind turbines but also ongoing maintenance, grid connection, and logistical challenges.

c. Energy Losses: Offshore wind systems face notable energy losses during energy transmission. According to industry data, the annual average energy losses amount to approximately 3% to 5% of the total generated energy, and this loss tends to increase as the system ages. These losses impact the overall efficiency and economic viability of offshore wind farms.

V. Proposed Expansions: A Glimpse into Future Growth

Looking ahead, the prospects for offshore wind expansion are even more promising. According to Federal Energy Regulatory Commission data, proposals have been put forth to construct over 6200 MW of offshore wind capacity in the vicinity of Massachusetts, Maryland, New Jersey, New York, Ohio, Rhode Island, and Virginia over the next six years. This ambitious commitment to expanding offshore wind capacity reflects the industry’s recognition of its pivotal role in driving the transition towards cleaner, more resilient energy sources.

Photo from Dominion Energy

VI. Catalyzing Clean Energy Goals: Overcoming Hesitations

However, despite the undeniable potential of offshore wind energy, it’s essential to acknowledge that embracing this renewable source hasn’t been universally met with enthusiasm. Transitioning to cleaner energy sources is a collective imperative, but it requires navigating various challenges and overcoming hesitations.

An inspiring example of a proactive stance towards offshore wind energy is evident in the recent announcement from Octopus Energy, a prominent energy supplier in the United Kingdom. Their power generation division revealed plans to invest a staggering $20 billion by 2030 in the offshore wind industry. This forward-looking commitment underscores the significance of offshore wind as a cornerstone of the clean energy revolution.

This bold investment isn’t just about monetary figures; it signifies a mindset shift towards cleaner, more sustainable energy sources. It acknowledges that the transition to renewable energy isn’t just a financial decision but also a strategic move to secure a greener future for generations to come. By leading through substantial investments, companies like Octopus Energy set an encouraging precedent that can galvanize others to actively participate in shaping a cleaner, more sustainable energy landscape.

In a world increasingly cognizant of the environmental costs of traditional energy sources, initiatives like Octopus Energy’s investment in offshore wind energy illuminate the path towards a future where renewable energy becomes the norm, rather than the exception. Such initiatives demonstrate that meeting clean energy goals isn’t just a regulatory requirement but an opportunity to foster innovation, economic growth, and environmental stewardship on a global scale

VII. Industry Development in Action: Virginia Offshore Wind Project

One compelling illustration of the progress in offshore wind energy is the Virginia Offshore Wind (CVOW) project. Situated approximately 27 miles off the coast of Virginia, this ambitious endeavor boasts a total installed capacity of 2600 MW. With plans to install 176 units of 14.7 MW offshore wind turbines, the completed project is poised to provide carbon-free electricity to over 650,000 households and businesses. This achievement not only underscores the substantial scale of offshore wind potential but also exemplifies how offshore wind farms can make a substantial contribution to regional energy sustainability.

Construction work underway at the Coastal Virginia Offshore Wind project, located 27 miles off the coast of Virginia Beach. @ DOMINION ENERGY

Conclusion: Riding the Offshore Wind Wave

In a world where energy sustainability is no longer a choice but a necessity, offshore wind energy emerges as a dynamic solution. Its capacity to provide clean, abundant power while addressing climate challenges paints a promising picture for the future.

Yet, as with any innovation, challenges accompany the rewards. Overcoming technical complexities, integrating into existing grids, and navigating costs demand strategic solutions.

In embracing these challenges, we’re witnessing pioneering initiatives like the Virginia Offshore Wind Project and bold investments from industry leaders like Octopus Energy. These examples underscore that offshore wind’s potential is not merely theoretical—it’s being realized.

Offshore wind energy isn’t just about electricity; it’s about investing in a sustainable legacy for generations to come. It’s about charting a course to a future where cleaner, resilient energy sources power our progress.

As we set our sails towards this cleaner horizon, let’s remember that by embracing offshore wind energy, we’re steering towards a brighter, more sustainable world. The winds of change are at our backs; it’s up to us to navigate them towards a cleaner, more prosperous future.

References:
1. Shifting towards offshore wind energy—Recent activity and future development https://www.sciencedirect.com/science/article/abs/pii/S0301421512008907
2. Global Offshore Wind Report 2020 https://wfo-global.org/wp-content/uploads/2021/02/WFO_Global-Offshore-Wind-Report-2020.pdf
3. Renewable Power Generation Costs in 2021 https://www.irena.org/publications/2022/Jul/Renewable-Power-Generation-Costs-in-2021
4. Britain’s Octopus Energy to invest $20 billion globally in offshore wind by 2030 https://www.reuters.com/business/energy/britains-octopus-energy-invest-20-bln-globally-offshore-wind-by-2030-2023-07-24/
5. Coastal Virginia Offshore Wind https://www.dominionenergy.com/projects-and-facilities/wind-power-facilities-and-projects/coastal-virginia-offshore-wind
6. Wind Orca to Install 14.7 MW Siemens Gamesa Turbines on Moray West https://www.offshorewind.biz/2022/06/23/wind-orca-to-install-14-7-mw-siemens-gamesa-turbines-on-moray-west/