The World Bank’s Energy Sector Management Assistance Program (ESMAP) released today a report distilling experiences from established offshore wind markets into key success factors for emerging markets. Offshore wind is a rapidly growing industry which holds tremendous promise for many emerging markets as a large-scale, clean, reliable form of new electricity generation with the potential to stimulate valuable economic benefits, reduce emissions and increase energy access. Modelling of global decarbonization scenarios suggests that up to 2,000 gigawatts (GW) of capacity will need to be generated by 2050.
Emerging markets hold an unrealized potential of over 16,000 GW of technically extractable offshore wind resources. However, according to the report, entitled Key Factors for Successful Development of Offshore Wind in Emerging Markets, developing a new offshore wind sector in an emerging market is not an easy task. Decision makers must strike a careful balance as they consider a myriad of technical, political, environmental, and social challenges.
Through actions such as developing stable offshore wind policies and targets, creating an attractive environment for international financing, and providing bankable power offtake for projects, governments can create a successful and thriving offshore wind sector.
According to the report, experience from established markets has shown that, to maximize the success of deploying offshore wind, governments in emerging markets should:
- Recognize that offshore wind, due to its large scale and high complexity, is significantly different from other forms of renewable energy, and needs strong, proactive government support to achieve the huge benefits it can bring.
- Clearly communicate the role of offshore wind as part of a long-term strategy and provide certainty through policy commitments to target volumes and dates.
- Proactively coordinate agencies to establish robust frameworks with clear processes to deliver bankable outcomes that meet good international industry practice.
- Collaborate with industry and stakeholders, to gather feedback on learning and experience, and use this to improve policy, frameworks, and delivery.
The report is a publication of the World Bank Group’s Offshore Wind Development Program led by ESMAP in partnership with the International Finance Corporation (IFC). It was prepared by Arup and BVG Associates. The Program was established in 2019 with the aim of accelerating the uptake of offshore wind in emerging markets by supporting the inclusion of offshore wind into the energy sector policies and strategies of World Bank Group client countries and the preparatory work needed to build a pipeline of bankable projects.