The global offshore wind power market, fuelled by the depletion of fossil fuel reserves, the declining cost of wind power generation and impressive investment from the UK, is expected to explode over the next decade, states research and consulting firm GlobalData.

The company’s new report forecasts the global offshore wind power market to rocket from a 2012 cumulative installed capacity of 5.1 Gigawatts (GW) in 2012 to a far greater 54.9 GW by the end of the decade, growing at a Compound Annual Growth Rate (CAGR) of 34.5%.

The UK is a major player in the offshore wind power market thanks to its substantial financial commitment and ideal location, contributing more than half of the global installed capacity last year, with 2.7 GW.

Jonathan Lane, GlobalData's Head of Consulting for Power and Utilities, says: “While risks for offshore developers remain, in particular the potential rationing of Contracts for Difference (CFD) under the levy control framework, the still nascent transmission regime and the competition from nuclear power, the UK government is firmly supporting offshore wind via the Energy Bill.”

Tags: GlobalData