Emerging Markets in the Offshore Wind Industry
Emerging Markets in the Offshore Wind Industry
Global Business Development Manager, Paul Burns, talks about four of the key emerging markets in the offshore wind industry.
South Korea, Japan, Canada, and Australia are each advancing their offshore wind sectors to meet renewable energy goals and unlock economic potential. This blog provides an overview of each country’s targets, recent developments, and the challenges they face as they work to capitalise on their substantial offshore wind resources.
South Korea
South Korea has set an offshore installation target of 14.3GW by 2030. However, slow permitting processes, typically up to 10 years, have been holding back development. In May 2024, the Global Wind Energy Council (GWEC) released two reports which urged policymakers to address key concerns, including this lengthy permitting process. The GWEC has estimated that offshore wind development could positively contribute to South Korea’s coastal cities by suppling 770,000 jobs and injecting millions into the economy.
In August 2024, the Ministry of Trade, Industry and Energy (MOTIE) announced that they were launching initiatives to accelerate the development of offshore renewable power. Alongside this, MOTIE presented their road map for transforming offshore wind which should help strengthen the supply chain and bolster expansion efforts. Incheon, a city in the northwest of the country, has been selected by MOTIE for a public-led offshore wind initiative. The project is aiming for a capacity of 2.0GW across 554 km2 in Incheon Eungjin territorial waters.
On 5th November 2024 it was announced that the biggest floating offshore wind project in the world is being planned for South Korea, off the coast of Ulsan. The complex, made up of four wind farms, is expected to be completed in 2030-31, with a total capacity of 6.2GW.
Japan
Japan aims for renewables to provide 36-38% of its electricity by 2030 including 10GW of installed offshore wind capacity. By 2040, they hope for wind capacity to have increased to 45GW and for the country to be carbon neutral by 2050. To meet these ambitious goals, the country’s offshore wind industry is starting to grow rapidly.
Until now, Japan has not been a frontrunner in offshore wind in the Asia-Pacific region. Back in 2019, the World Energy Balance Overview named Japan as the least self-sufficient of the ten largest OECD (Organisation for the Economic Co-operation and Development Countries).
Although Japan does have some shallow seabed potential, the majority of their offshore wind potential is in deeper waters, more suitable for floating turbines. Currently Japan has 5MW of small floating demonstration projects, to test this type of infrastructure. Our recent blog, Offshore Wind in Japan, examines how Japan is building infrastructure to support this growing industry and its offshore wind potential.
Canada
Recent changes to legislation at both federal and provincial levels in Canada have increased the opportunity for the country to harness its incredible wind speeds. 2023 was a key year in the development of Canada’s offshore wind sector, with the introduction of Bill C-49, which permits offshore wind development for the first time in Nova Scotia, Newfoundland and Labrador.
Whilst this bill is significant for its permissions on a federal level, as the offshore wind industry develops in Canada it will continuously have to balance this alongside working with the individual provinces. Newfoundland and Labrador signed a memorandum of understanding in December 2023 which aims to ensure that wind projects in their provinces are managed by them alone.
To find out about investigative work by our Venterra Group partners in Nova Scotia, the development of the industry in British Columbia, and some of Canada’s current offshore wind projects, have a read of our blog: Harnessing Canada’s Offshore Wind Potential.
Australia
Australia’s offshore wind industry is in its infancy, but the country has big renewable energy goals and a great deal of potential wind resources. The GWEC states that Australia has the sixth largest offshore wind resource potential in the world. The government has set a target of reaching 2GW of offshore wind capacity by 2032, 4GW by 2035 and 9GW by 2040.
In December 2022, the area off the coast of Gippsland in Victoria was the first to be declared as suitable for offshore wind projects. By July 2024, 12 projects in this area had been granted feasibility licences, including some for floating wind. The potential energy from these projects could be more than the entire state of Victoria generated last year. In total, 6 zones across the country have been earmarked as suitable for offshore wind farms, as of November 2024.
Conclusion
South Korea, Japan, Canada and Australia are each making strides in offshore wind energy, driven by ambitious goals and significant resource potential. While challenges such as permitting delays and regulatory complexities remain, all four countries are accelerating their offshore wind infrastructure and capabilities to meet these impressive goals. We are already working on our second project in South Korea and we will be watching with interest as the other countries start to publish their tenders. Where will our offshore teams be heading to next?
For more information on FoundOcean’s experience and capabilities, contact the team on +44 1506 440330 or email info@foundocean.com