The untapped potential in Asian offshore wind power

Published onSeptember 25, 2020

From 2020 to 2025, global renewable energy capacity is projected to grow by 50%, likely led by solar photovoltaic and onshore wind. It would be a mistake, however, for developers and insurers to overlook the prospects for offshore wind. Offshore wind power has seen strong growth in recent years and presents significant untapped potential. Around the world, the sector has seen average annual growth of 30% from 2000 to 2018. Total capacity is projected to increase threefold by 2025. Notably, momentum in offshore wind has shifted from Europe to Asia. Of the 17 GW of offshore turbines ordered globally last year, China alone accounted for 76% of those orders; as a region, Asia accounted for 88%. In recent years, Asian countries have considered ramping up investment in offshore wind power due to its high economic efficiency and support for the low-carbon transition. Indeed, China, India, Japan, South Korea, Taiwan and Vietnam are all actively developing offshore wind energy in the region. A deeper look at three of these markets reveals different development trajectories and remaining challenges, which insurers should consider in offering relevant coverage.