November 26, 2018 Read More →

Little consensus on copper but long-term concerns are growing

Offshore Wind Journal:

Bloomberg New Energy Finance projected that the offshore wind market would grow at a compound annual growth rate of 16% to reach a total global capacity of 115 GW by 2030, a six-fold increase from 2017, but the Institute for Energy Economics and Financial Analysis analysts believe this estimate “possibly understates the enormous offshore wind potential of Asian economies.”

Look at the potential size of the market in the US, and after the initial commercial-scale projects get built in the early 2020s a huge amount of copper could be needed for that market alone, even though early projects are likely to be nearshore, reducing the length of export cables. State-level commitments and advances in permitting and energy offtake processes have seen the US offshore wind project development pipeline exceed 25 GW, according to the US Department of Energy, although, as Navigant argued in a recent report, since copper usage is so closely tied to the installation rate, wind’s role as a growth market in the US could decline in the short-term due to the phase-out of investment tax credits.

To put the potential of the fast-growing US market in perspective, the UK, the world’s leading adopter of offshore wind energy, currently has an installed base of around 7.5 GW (and is planning to build a lot more). UK Round 4 offshore windfarms could see another 7 GW built. Research from Wood Mackenzie suggests the Asia Pacific region’s offshore wind capacity will rise 20-fold to 43 GW by 2027.

Little consensus on copper but long-term concerns are growing

Posted in: IEEFA In the News

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