‘Key Factors for Successful Development of Offshore Wind in Emerging Markets‘ by BVG Associates, Arup and the World Bank Group provides blueprint for emerging markets to establish successful offshore wind generation.
The World Bank’s Energy Sector Management Assistance Program (ESMAP) released today the ‘Key Factors for Successful Development of Offshore Wind in Emerging Markets‘ report distilling experiences from established offshore wind markets into key success factors for emerging markets. The report delivers guidance for governments of emerging markets to create the right environment for the financing and construction of offshore wind, bringing significant economic and environmental benefits to their countries.
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. 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, the reports shows how governments can create a successful and thriving offshore wind sector.
The report is available to countries worldwide and aims to support governments and policymakers in the development of their offshore wind strategies. 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, and
- Collaborate with industry and stakeholders, to gather feedback on learning and experience, and use this to improve policy, frameworks, and delivery.
Our report highlights key learnings from established geographies to accelerate the development of new offshore markets wind where they can make the greatest contributions to net zero.”
Bruce Valpy, Managing Director BVG Associates, said: “Much of our work now is in helping grow offshore wind in new markets, and helping governments, project developers and suppliers maximise the benefits. This highly collaborative project has been a great opportunity to combine our experience with the learning of many around the world. We are already referring to the content on a daily basis and expect many others will choose to, as well.”
The guidance will be used to inform and shape discussions with energy leaders from across the world during COP26. The World Bank Group launched its first country specific roadmap for offshore wind in Vietnam, written by BVG Associates, earlier this year. Arup and BVG Associates are working on two further roadmaps (Azerbaijan and Philippines) to be published early next year.
The report is a publication of the World Bank Group’s Offshore Wind Development Program led by ESMAP in partnership with the International Financing 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.
You can download the report and read the full press release on this page on the ESMAP website: New ESMAP Report Highlights Key Factors for Successful Development of Offshore Wind in Emerging Market