Export opportunity – China offshore wind

China – offshore wind opportunity summary 

Despite fluctuations in the speed of offshore wind capacity installations, the outlook in China is strong, with an additional 34 gigawatts planned for installation by 2025. 2022 saw a slowdown, compared to a record 16.9 gigawatts of new installation in 2021. This was mainly due to the end of the feed-in tarriff (FiT) in 2022. However, 5 gigawatts of grid connection was still achieved in 2022, and China remains the leading market globally for offshore wind, with many opportunities for Scottish supply chain companies. 

China currently has two demonstration turbines in operation and three under construction. The first commercial one gigawatt project is under development and expected to be operational by 2027. 

Scale of export opportunity 

According to a study of China’s coasts, China has a floating offshore wind potential of 600 gigawatts, including 230 gigawatts in waters more than 80 metres deep. China is ramping up to 2025 for its transition from nearshore to far-from-shore offshore wind development.

The high cost of floating wind projects, as well as a lack of engineering capabilities, poses a big challenge to the Chinese supply chain. Advanced equipment, engineering solutions and experience will be required to meet this challenge, putting Scottish companies with capabilities in floating offshore wind in a good position.  

China's current capital expenditure ranges between £1200 to £1600 per kilowatt for fixed-bottom offshore wind and £3600 to £6000 per kilowatt for the floating demonstration projects – providing scope for international collaboration.

Company suitability   

Scottish companies best positioned to win this type of business are:  

• Supply chain companies with expertise in floating wind  
• Companies that specialise in mooring and anchoring, dynamic cables, substructural design and offshore operation and maintenance 
• Companies that are already trading internationally