Merely a handful of smaller projects with combined capacity of 800MW have progressed to the point of final investment decisions (FID), according to 4C Offshore’s latest Global Floating Wind report for 2022.

2022 is a ”record low for investment activity” in the offshore wind energy sector, 4C states.

The tense supply-demand balance projected for 2024-’25 has already materialized due to the lack of investments, says 4C. Offshore projects have been postponed up to two years, thus cutting into demand.

Delayed FIDs and general project development result from supply chain bottlenecks, price uncertainty, and slow permitting processes.

However, 2022 has been a fine year for allocation of development rights, with 72.5GW allotted to both fixed-bottom and floating varieties, corresponding to more than three times last year’s total and far more than the six-year average of 10GW.

Ivar Slengesol, vice president of TGS, 4C’s parent company, says 2022 has been a mixed bag for offshore wind:

”Project delays set back offshore wind energy on a short-term basis and have obscured supply chain transparency. Governments have to accept high electricity prices at auctions in the future as a consequence of inflation pressure and rising costs of debt,” Slengesol elaborates.

He also calls surging site prices impressive and very fortunate news.

”It demonstrates wide support for offshore wind, boding well for the industry in a longer perspective,” Slengesol asserts.

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