Asia-Pacific offshore wind sector to expand with new tenders

The offshore wind sector in the Asia-Pacific region is expanding significantly, with 10 gigawatts of projects poised to enter the tendering stage this year.

This growth is contributing to an escalation in competition, largely driven by the increasing number of international developers turning their focus to the APAC market. This shift is partly attributed to uncertainties and deceleration in the offshore wind industry in the United States.

As the industry intensifies, there has been a marked increase in the use of advanced modelling tools to aid in the early-stage development processes of these projects. Youwind Renewables, a Barcelona-based company, has observed heightened interest in its platform, which is designed to support the development of offshore wind projects in several APAC countries, including Japan, South Korea, Australia, and the Philippines.

Over the past two years, Youwind has successfully secured ten projects across Japan and other major markets in the region. Collectively, these projects have a capacity of nine gigawatts. This indicates a trend towards using tools that allow for precise and rapid site selection and project development.

The APAC region is expected to witness its operational offshore wind capacity rise sixfold by 2030, driven by strategic ambitions in countries such as Japan, South Korea, China, and Taiwan. Notably, Japan is targeted to achieve 10 gigawatts of offshore wind capacity by 2030, expanding potentially to 45 gigawatts by 2040.

Japan and South Korea have already commenced allocations through offshore wind auctions, distributing 4 gigawatts and 6 gigawatts, respectively. Projects are planned to be operational by 2026. Given the escalating competition for future tenders, developers are urged to expedite their engagement in these promising opportunities.

The expansion in the APAC area is underpinned by solid government policies, technological developments, and the development of regional turbine manufacturing to meet local demand. However, developers must navigate challenges such as regulatory conditions and supply chain constraints, highlighting the necessity for robust site assessments and adaptive strategies.

Access to sites with prior approval and preliminary assessment is advantageous as it reduces risk, streamlines the permitting process, and shortens project timelines. To maintain a competitive edge, developers are evaluating and modelling many more potential sites, which Youwind estimates to be 20 times the number assessed five years ago. Youwind's software enables reducing site screening durations by up to 80%, significantly accelerating development cycles.

Anna Rivera, Founder and CEO of Youwind, commented, "As APAC's offshore wind market continues to grow at an unprecedented pace, we're seeing record demand for Youwind's solutions. This year's tendering opportunities present a pivotal moment for developers. By adopting a strategic approach and leveraging the right tools, they can ensure long-term success in one of the world's most dynamic markets."