Global Offshore Wind Market Outlook for 2025: Emphasizing Sustainable Development Goals

The global offshore wind market is projected to experience significant growth in 2025, although the expansion may not be as robust as in previous years. A key factor influencing this trend is the underperformance of the United States, despite its extensive coastlines and large coastal populations demanding energy. This report highlights the current state of the offshore wind industry with a focus on its alignment with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action).

1. Current Status of the Global Offshore Wind Industry

1. Installed Capacity Growth: In 2024, the offshore wind sector added 8 gigawatts (GW) of installed capacity, ranking as the fourth-highest annual increase on record.
2. Total Global Capacity: The Global Wind Energy Council (GWEC) reports a cumulative offshore wind capacity of 83 GW worldwide, sufficient to power approximately 73 million households, contributing directly to SDG 7.
3. Pipeline and Auction Records: Offshore wind farms under construction reached a record 48 GW, while new offshore lease auctions totaled 56 GW in 2024, indicating strong future potential.

2. Challenges Impacting Short-Term Growth

• Macroeconomic Headwinds: Global economic factors have introduced uncertainties affecting investment and development timelines.
• Policy Instability: Particularly in the United States, inconsistent energy policies have hindered progress, undermining SDG 13 efforts.
• Failed Auctions: Auction setbacks in mature markets such as the UK and Denmark have contributed to a revised downward short-term outlook.
• Supply Chain Constraints: Global supply chain issues have affected manufacturing and deployment schedules, impacting SDG 8 related to sustained economic growth and employment.

3. The United States’ Role and Its Impact on Global Progress

The US possesses a vast technical potential for offshore wind energy, with estimates from the National Renewable Energy Laboratory (NREL) indicating:

• 1.5 terawatts (TW) from fixed-bottom offshore wind technology.
• 2.5 TW from floating offshore wind technology.

Despite this, policy reversals and regulatory challenges have stalled the US offshore wind industry, limiting its contribution to global clean energy goals and job creation (SDG 7 and SDG 8). The Trump administration’s actions, including the cancellation of leases and permits, have resulted in the loss of thousands of jobs in coastal communities and manufacturing sectors.

4. Global Market Dynamics Without US Participation

In the absence of significant US engagement, other regions are driving offshore wind growth:

• Europe and China: Continue to lead in near-term capacity expansion.
• Emerging Markets: Asia-Pacific and Latin America show rising activity, with countries such as Japan, South Korea, Philippines, Vietnam, Australia, Brazil, and Colombia accelerating offshore wind projects.

GWEC forecasts annual growth rates of approximately 28% in the near term, slowing to 15% between 2030 and 2034, with installed capacity expected to surpass 30 GW annually by 2030 and 50 GW by 2033, supporting SDG 7 and SDG 13.

5. Employment and Economic Impacts

The offshore wind sector is a significant source of employment and economic development. The US offshore wind lease program had attracted $40 billion in investments, including $24 billion in manufacturing and vessel building across 39 states, benefiting both red and blue states. The loss of this momentum has had adverse effects on job creation and economic growth, counteracting SDG 8 objectives.

6. Innovations and Future Opportunities in Offshore Wind

Technological advancements are enhancing the sustainability and multifunctionality of offshore wind farms:

• Dual-Use Foundations: Companies like Mingyang Smart Energy have developed typhoon-resistant jacket-type foundations integrated with intelligent aquaculture systems, enabling fish farming alongside energy production, contributing to SDG 2 (Zero Hunger) and SDG 14 (Life Below Water).
• Multi-Purpose Energy Platforms: Incorporation of floating solar panels, wave energy devices, and green hydrogen electrolyzers on turbine platforms is being explored to diversify renewable energy outputs and optimize resource use.
• Food-Water-Energy Nexus: Projects such as Sweden’s Mareld wind farm plan to integrate aquaculture with floating wind turbines, exemplifying sustainable resource management and circular economy principles.

7. Conclusion and Recommendations

1. Policy Stability: To realize the full potential of offshore wind and meet SDGs, particularly SDG 7 and SDG 13, stable and supportive policies are essential, especially in the US.
2. Global Collaboration: Strengthening international supply chain cooperation is critical to unlocking large-scale deployment potential.
3. Innovation Adoption: Encouraging multi-use offshore platforms can enhance sustainability and economic benefits, aligning with multiple SDGs.
4. Job Creation Focus: Offshore wind development should prioritize local employment and supply chain growth to support SDG 8.

Overall, while the US currently lags in offshore wind development, the global industry continues to advance, contributing significantly to sustainable energy transitions and climate action worldwide.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article focuses on offshore wind energy capacity growth globally, highlighting the potential of wind energy to power millions of households and the technical potential in the US.
2. SDG 8: Decent Work and Economic Growth
   • Discussion of job losses in the US offshore wind industry and the impact on manufacturing and supply chain jobs.
   • Potential for job creation in coastal communities and related industries.
3. SDG 9: Industry, Innovation and Infrastructure
   • Development of innovative offshore wind turbine foundations with integrated aquaculture systems and multi-purpose use such as floating solar panels and wave energy devices.
   • Emphasis on supply chain collaboration and manufacturing investments.
4. SDG 13: Climate Action
   • Promotion of offshore wind as a clean energy source to reduce reliance on fossil fuels and combat climate change.
   • Reference to green hydrogen production using offshore wind energy.
5. SDG 14: Life Below Water
   • Integration of aquaculture with offshore wind farms, promoting sustainable use of marine resources.

2. Specific Targets Under Those SDGs Identified

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all, including in emerging industries like offshore wind.
   • Target 8.2: Sustain per capita economic growth and promote development of industries.
3. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean technologies.
   • Target 9.5: Enhance scientific research and upgrade technological capabilities of industrial sectors.
4. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
5. SDG 14: Life Below Water
   • Target 14.2: Sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts.

3. Indicators Mentioned or Implied to Measure Progress

1. Installed Offshore Wind Capacity (GW)
   • Indicator related to SDG 7.2: The article mentions 8 GW added in 2024, total 83 GW globally, and future milestones of 30 GW annually by 2030 and 50 GW by 2033.
2. Number of Households Powered
   • Indicator for SDG 7: The article states offshore wind capacity powers 73 million households globally.
3. Employment Numbers in Offshore Wind Industry
   • Indicator for SDG 8.5: Thousands of jobs lost in the US offshore wind sector, including manufacturing and portside jobs.
4. Investment in Offshore Wind Supply Chain
   • Indicator for SDG 9.4 and 9.5: $40 billion in new investment, with $24 billion in manufacturing and vessel building across 39 states.
5. Number of Offshore Lease Auctions and Capacity Under Construction
   • Indicator for SDG 7.a and 9.5: Record 56 GW in new offshore lease auctions and 48 GW under construction globally.
6. Innovative Multi-purpose Offshore Wind Technologies
   • Implied indicator for SDG 9.5 and 14.2: Development of aquaculture-integrated turbine foundations and floating solar/wave energy devices.

4. Table: SDGs, Targets and Indicators

Source: cleantechnica.com