By 2027, the region will see a 20-fold increase in offshore wind capacity to 43 Gigawatts
New research by Wood Mackenzie, a global energy resources consultancy, suggests that offshore wind capacity in the Asia-pacific region will grow 20-fold to 43GW by 2027, particularly in mainland China, where it is expected to grow to 31GW from 2GW last year.
Second is Taiwan, which will account for 20 per cent of the region's offshore wind capacity, or 8.7gw, by 2027, making it the largest offshore wind market in the asia-pacific region outside mainland China since 2020.
Currently, Taiwan relies heavily on coal, natural gas and nuclear power to generate electricity.
However, Taiwan's local government has promised to shut down the plant by 2025, leaving 5GW of capacity unfilled.
Offshore wind is expected to fill that void as more than 5.7GW of projects have been approved and are scheduled to go into production by 2025.
Driven by falling prices, some regional markets in the Asia-pacific region have set ambitious offshore wind targets, Wood Mackenzie said.
However, not every market can succeed because stable domestic offshore supply chains and strong government support need to be maintained over the long term.
The region, which includes South Korea and Japan, needs about $37bn of investment to meet the growth in offshore wind capacity over the next five years.
Future offshore wind power prices are expected to rival those of conventional thermal power by 2025.
Despite the huge potential of offshore wind power in the Asia-pacific region, the key challenges of technological maturity and limited regional offshore wind supply chains remain.
The offshore technology used by regional leader China still lags behind Europe.
For example, Shanghai electric, China's leading supplier of offshore wind turbines, continues to rely on the technical license of Siemens gesa, the European turbine original equipment manufacturer, for renewable energy, while regional wind turbine suppliers still do not offer offshore wind turbines above the 8MW level.
Outside China, local turbine suppliers in South Korea and Japan are investing in new and large offshore turbines comparable to those in the west.
This takes time, as it requires more research and development, testing new equipment and stockpiling developer support.
In addition, to support the rapid growth of offshore wind capacity, a robust supply chain needs to be established, including maritime infrastructure, local fleets to install and service offshore wind farms, as well as power transmission system upgrades.