The global offshore wind operation and maintenance (O&M) market is expected to grow by 17% annually to €11 billion by 2028, according to new research from Wood Mackenzie Power and Renewables on Wednesday.
Europe is the largest contributor with €6.7 billion in value, while the Asia Pacific region is keeping up the pace in O&M market size and spend.
The operational offshore wind farms in Europe are relatively young – 80% of the installed base will remain within the first half of their design lives by 2028, Mackenzie said.
Subsidy-free projects are commonly seen in established markets, but more than 27 gigawatts (GW) of capacity are expected to come out of subsidy in the 2030s.
Shimeng Yang, report lead and Wood Mackenzie senior offshore wind analyst, said in the statement that market experts expect average operational expenses (OPEX) across Europe to drop by 57% between 2019 and 2028, mainly driven by larger turbine ratings, improved turbine reliability, economies of scale in service (due to larger-scale projects), new service practices and clustering opportunities.
The turbine O&M costs constitute the biggest portion of offshore wind OPEX spend, he added.
Soren Lassen, Wood Mackenzie senior offshore wind analyst, said that this trend has been further fuelled by an excess supply of installation vessels in the market, which is set to intensify in the mid-2020s when next generation turbines will start to be deployed.
Almost all offshore wind turbines use condition monitoring systems, though usage differs by turbine OEMs, such as Siemens Gamesa and MHI Vestas.
By Gulsen Cagatay
Anadolu Agency
energy@aa.com.tr