Emission control regulations and green energy targets to bolster the demand for offshore wind cables in Europe
Increased preference for clean energy generation due to the decline in fossil fuel reserves is expected to drive offshore wind cable deployment over the coming decades. According to the Global Wind Energy Council, in the year 2017, approximately 4,331 MW of new wind power was installed across nine markets across the globe. This showcases a 95% increase as compared to the 2016 numbers.
Moreover, the declining cost of the components from government subsidies to promote the adoption of clean offshore energy generation will support the investments into wind farm projects, influencing the production and demand for offshore wind cables.
Initiatives undertaken by the European governments
Reportedly, Europe carries the ability to harness close to 3,400 TWh of offshore wind power by the end of 2030. With a combination of regulatory support and industrial cost reduction, offshore wind is expected to grow to 24.5 GW by the end of 2020 and up to 100 GW by 2030.
In the year 2019, the EU government invested close to €6 billion in the development of offshore wind energy projects. The government in the region aims at utilizing the total offshore potential to support the stringent initiatives for controlling the rising carbon emission levels.
To control the levels of rising carbon emission and environmental degradation, the EU commission has established laws and measures to achieve energy and climate targets by 2030 and by the end of 2050, Europe aims at becoming the world’s first climate-neutral continent. This indicates significant potential for offshore energy developments, bolstering offshore wind cable market outlook.
The European Green Deal is an ambitious package of measures that range from reducing GHG emissions to preserving the region’s natural environment and investing in cutting-edge research and innovation.
Growing demand for clean electricity across Asia Pacific
Improving economic conditions among people in Asia Pacific region has led to the development of industries and residential spaces, propelling the demand for continuous, reliable and safe electricity in the region.
As per the International Energy Agency, the consumption of electricity in Southeast Asia is expected to double by the end of 2040, registering an annual growth rate of close to 4% which is twice as fast as the rest of the world.
Increasing efforts undertaken by industries to achieve economies of scale with the help form recognized financing institutions like the World Bank will supplement the business trends. In the year 2019, the World Bank along with International Finance Corporation (IFC) invested close to USD 500 billion towards the development of offshore wind projects by the end of 2030, paving the development of wind energy and influencing the Asia Pacific offshore wind cable industry forecast.
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