Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 41
Offshore Wind Worldwide 2023
41
1. STATE AND FUTURE OF
OFFSHORE WIND PROJECTS
power installed capacity worldwide (up from
4.75% in 2020).
1.1 Current state of offshore wind
development and projects
According to statistics released by the
National Energy Administration (NEA),
China’s renewable energy installation
capacity had reached 1,213 GW at the end
of 2022, with year-on-year growth of 2.5%.
This breaks down into 413 GW (up 5.6%) for
hydropower (including 368 GW for conventional hydropower and 45 GW for pump
storage power); 365 GW (up 11.28%) for wind
power; 393 GW for solar power; and 41 GW
(up around 7.95%) for biomass power. Renewable energy accounted for 47.3% of the
national total installed power capacity as of
the end of 2022 (a slight increase from 44.8%
as of the end of 2021).1
China remains the world’s largest market
in terms of total installed offshore wind
power capacity (at 31.44 GW as of the end
of 2022). In 2022 alone, China installed 5.05
GW of offshore wind power capacity (much
less than the 16.9 GW installed in 2021
but still more than any other jurisdictions)
following the introduction of "grid parity"
in the Chinese offshore wind power market
since 2022 (although local subsidies remain
available, as noted below). 3 With the aim of
pushing offshore wind projects to develop
at parity, the entire Chinese wind power
sector is proactively cutting costs. According
to the Chinese Wind Energy Association,
the current average LCOE for offshore wind
power projects in China has fallen to around
RMB 0.33/kW. 4
In 2022, the global offshore wind power industry installed 8.8 GW of new capacity (increasing from 6.1 GW in 2020), 58% of which
in China that remained the global leader in
offshore wind power development although
its new installations in 2022 were 70% lower
than in 2021. 2 The total offshore wind power
cumulative installed capacity worldwide
has reached 64.3 GW in 2022 (with China
accounting for 49%, up from 28.3% in 2020),
representing 7% of the total cumulative wind
The Chinese government is committed
to increasing China’s wind power installed
capacity. The 13th Five-Year Plan for Wind
Power Development applicable from 2016
to 2020 (13th Five-Year Plan) set out the
following goals by the end of 2020: (i) 210
GW of cumulative installed capacity of wind
power (including onshore and offshore)
connected to the grid, among which 5 GW
from offshore wind power; and (ii) 10 GW
1 First Quarter 2023 Online Press Briefing by National Energy Administration, published by National Energy Administration on 13 February 2023 (http://
www.nea.gov.cn/2023-02/13/c_1310697149.htm); First Quarter 2022 Online Press Briefing by National Energy Administration, published by National
Energy Administration on 28 January 2022 (http://www.nea.gov.cn/2022-01/28/c_1310445390.htm).
2 "Global Wind Report 2023", published by the Global Wind Energy Council on March 27 2023 (https://gwec.net/wp-content/uploads/2023/03/
GWR-2023_interactive_v2_compressed.pdf).
3 "Global Wind Report 2023", published by the Global Wind Energy Council on March 27 2023 (https://gwec.net/wp-content/uploads/2023/03/
GWR-2023_interactive_v2_compressed.pdf).
4 "Prospects for the LCOE of offshore wind power in China during the 15th Five-Year Plan period", published by Chinese Wind Energy Association on 16
March 2023 (https://mp.weixin.qq.com/s/qYXTjQFquLfflw3d6QTKjA).
