Energy

<p style="text-align: justify;"><span data-preserver-spaces="true">In the dynamic world of renewable energy, the offshore wind sector is experiencing a remarkable surge, particularly in the Far East Asian region. Offshore wind farms and wind power plants installed in the sea have become a driving force in the quest for sustainable electricity generation. Typically, there are two main types of offshore wind projects -&nbsp;</span></p><ul style="text-align: justify;"><li><span data-preserver-spaces="true">Fixed-bottom wind turbine generators </span></li><li><span data-preserver-spaces="true">Floating wind turbine generators</span></li></ul><p style="text-align: justify;"><span data-preserver-spaces="true">As countries work to meet their climate commitments under the Paris Agreement, these offshore wind technologies play an increasingly vital role in the global transition to clean energy.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Fixed wind projects, characterized by using fixed-bottom foundations such as monopiles, jackets, tripods, or gravity bases, have emerged as the predominant technology in this field. These projects are well-suited for shallow to medium water depths, typically up to 50 meters, where installation and maintenance costs are&nbsp;</span><span data-preserver-spaces="true">more manageable</span><span data-preserver-spaces="true">.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The Far East Asian region, encompassing countries like China, Japan, and South Korea, has significant potential for offshore wind energy. With its long coastlines,&nbsp;</span><span data-preserver-spaces="true">strong</span><span data-preserver-spaces="true"> and consistent winds, high population density, and growing electricity demand, this region has emerged as a global leader in the offshore wind industry.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">According to the Global Wind Energy Council (GWEC), Far East Asia had a cumulative installed capacity of 19.6 gigawatts (GW) of offshore wind power by the end of 2020, accounting for an impressive 62% of the global total. Within this regional landscape, China stands out as the world leader, with a cumulative installed capacity of 18.4 GW by the end of 2020, representing 94% of the Far East Asian market and 59% of the global market.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">China has ambitious targets for offshore wind power, aiming to reach 50 GW by 2025 and a remarkable 200 GW by 2030 as part of its national energy plan and climate goals. The country has primarily focused on developing fixed wind projects in coastal provinces like Jiangsu, Guangdong, Fujian, Zhejiang, and Shandong, where the water depths are relatively shallow and the wind resources are abundant.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Japan, the second-largest offshore wind market in Far East Asia, has a cumulative installed capacity of 0.7 GW, representing 4% of the regional and 2% of the global markets.&nbsp;</span><span data-preserver-spaces="true">However, the country has set ambitious targets</span><span data-preserver-spaces="true">, aiming</span><span data-preserver-spaces="true"> to reach 10 GW by 2030 and 30-45 GW by 2040 as part of its renewable energy strategy and carbon neutrality pledge.</span><span data-preserver-spaces="true"> Like China, Japan has predominantly developed fixed wind projects in regions with </span><span data-preserver-spaces="true">favourable</span><span data-preserver-spaces="true"> wind resources and shallow water depths.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">South Korea, the third-largest offshore wind market in the region, has a cumulative installed capacity of 0.3 GW, representing 2% of the regional market and 1% of the global market.&nbsp;</span><span data-preserver-spaces="true">The</span><span data-preserver-spaces="true"> country has set a target of reaching 12 GW of offshore wind power by 2030 and 30 GW by 2035</span><span data-preserver-spaces="true">, as part of its green growth plan and net-zero commitment</span><span data-preserver-spaces="true">. South Korea has also focused on fixed wind projects, primarily in the regions of Jeollanam-do, </span><span data-preserver-spaces="true">Gyeongsangnam-do</span><span data-preserver-spaces="true">, and, to a lesser extent, Incheon.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Taiwan has established itself as the fourth-largest offshore wind market in the Far East, with a cumulative installed capacity of 0.2 GW by the end of 2020, representing 1% of the regional </span><span data-preserver-spaces="true">market</span><span data-preserver-spaces="true"> and 0.6% of the global market.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Taiwan has set ambitious targets for offshore wind development, aiming to reach 5.7 GW of capacity by 2025 and 15.5 GW by 2035.&nbsp;</span><span data-preserver-spaces="true">The country has primarily focused on developing fixed wind projects in </span><span data-preserver-spaces="true">the regions of</span><span data-preserver-spaces="true"> Changhua, Yunlin, and Miaoli, where the water depths are relatively shallow and the wind resources are abundant.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Some of the largest and most advanced fixed wind projects in Taiwan include the Formosa 2 Wind Farm (376 MW), the Yunlin Wind Farm (640 MW), and the Changfang and Xidao Wind Farm (600 MW). These projects showcase the technological advancements and scale&nbsp;</span><span data-preserver-spaces="true">that offshore</span><span data-preserver-spaces="true"> wind power is achieving in the region.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">While Taiwan has taken the lead, other countries in Far East Asia, such as Vietnam, Thailand, the</span> <span data-preserver-spaces="true">Philippines, and Indonesia, have also expressed interest in developing offshore wind power. </span><span data-preserver-spaces="true">However, these countries have not yet installed any significant capacity, highlighting the </span><span data-preserver-spaces="true">untapped potential in the region</span><span data-preserver-spaces="true">.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Offshore wind power offers multiple benefits for Far East Asia, including diversifying the energy mix, reducing greenhouse gas emissions, enhancing energy security, creating jobs, and stimulating economic growth. However, the industry faces challenges, such as high capital costs, complex permitting processes, grid integration issues, environmental impacts, social acceptance, and maritime conflicts.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The region is leveraging various enablers to overcome these challenges, such as supportive policies, attractive incentives, competitive auctions, innovative financing, technological advancements, and regional cooperation. Supportive policies include feed-in tariffs, renewable portfolio standards, renewable energy certificates, carbon pricing, and offshore wind development plans.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">The region is also exploring innovative financing solutions, such as green bonds, loans, funds, and banks, to support the growth of offshore wind power. Technological advancements, including&nbsp;</span><span data-preserver-spaces="true">larger</span><span data-preserver-spaces="true"> and more efficient turbines, floating foundations, digitalization, and hybrid systems, are also driving the industry's progress.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Regional cooperation in information sharing, capacity building, joint research, and cross-border projects is another key enabler for the offshore wind sector in Far East Asia. The region can also learn from the best practices and experiences of other more mature offshore wind markets, such as Europe and North America.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">As the world strives to combat climate change and achieve the Sustainable Development Goals, the rise of offshore wind power in Far East Asia is a significant step towards a more sustainable and resilient energy future for the region and the global community.</span></p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;" data-preserver-spaces="true">Conclusion</span><strong><span data-preserver-spaces="true">&nbsp;</span></strong></h2><p style="text-align: justify;"><span data-preserver-spaces="true">The rise of offshore wind power in Far East Asia is a testament to the region's commitment to renewable energy and its ability to harness the abundant wind resources that the vast Pacific Ocean&nbsp;</span><span data-preserver-spaces="true">has to offer</span><span data-preserver-spaces="true">. As the industry continues to evolve, the ongoing expansion of fixed wind projects in this dynamic region is poised to play a crucial role in the global transition towards a more sustainable energy future.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">As countries worldwide work to meet their climate goals under the Paris Agreement, offshore wind power is becoming increasingly important. Fixed offshore wind projects can especially support the implementation of Nationally Determined Contributions (NDCs)&mdash;the voluntary commitments made by each country to reduce greenhouse gas emissions.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Offshore wind&nbsp;</span><span data-preserver-spaces="true">is also benefiting from and contributing</span><span data-preserver-spaces="true"> to various global initiatives and platforms that promote its development and deployment.</span><span data-preserver-spaces="true"> Organizations like the Global Wind Energy Council (GWEC), International Renewable Energy Agency (IRENA), World Bank Group, and International Energy Agency are all advancing the offshore wind industry worldwide.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Broader global trends are also driving the growth of offshore wind power. The increasing demand for clean energy, declining technology costs, and rising climate action awareness create new opportunities for the sector. However, offshore wind also faces significant risks, including surging material and supply chain prices, geopolitical tensions, and the threat of extreme weather events exacerbated by climate change.&nbsp;</span><span data-preserver-spaces="true">As a relatively new and pioneering technology, the offshore wind industry is also navigating a steep learning curve, with many technical and logistical challenges that were </span><span data-preserver-spaces="true">not always</span><span data-preserver-spaces="true"> well anticipated during </span><span data-preserver-spaces="true">the</span><span data-preserver-spaces="true"> development and planning stages </span><span data-preserver-spaces="true">of projects</span><span data-preserver-spaces="true">.</span><span data-preserver-spaces="true"> Overcoming these hurdles will be crucial for the sector to reach its full potential and continue expanding its contributions to the global renewable energy transition.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Looking to the future, offshore wind can play a crucial part in achieving net-zero emissions, 100% renewable energy, green hydrogen, and globally interconnected power grid scenarios. Strategies like circular economy, smart grid integration, community ownership, and ocean stewardship can further enhance the potential of offshore wind.</span></p><p style="text-align: justify;"><span data-preserver-spaces="true">Monitoring and communicating the progress and impacts of offshore wind, using various indicators and outreach channels, will be critical to demonstrate its&nbsp;</span><span data-preserver-spaces="true">critical</span><span data-preserver-spaces="true"> role in the global energy transition. As the offshore wind industry scales up </span><span data-preserver-spaces="true">around the world</span><span data-preserver-spaces="true">, its contributions to emissions reductions, job creation, and other social and environmental benefits will become increasingly visible</span><span data-preserver-spaces="true">. A</span><span data-preserver-spaces="true"> future well worth investing in.</span></p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>