Energy Solutions by McKinsey’s Post

According to a report from the American Clean Power Association (ACP), US offshore wind power capacity is projected to reach 14GW by 2030, falling 16GW short of the 30GW goal set by the Biden administration in 2021. However, given that there is currently 56GW under development across 37 leases in the US, it’s predicted that the 2030 shortfall will be mitigated by 30GW deployed by 2033 and the 40GW online by 2035. For more info: https://bit.ly/3Y780Eh #OffshoreWind #RenewableEnergy #CleanPower #SustainableEnergy #WindEnergy

With billions at stake and projects under intense scrutiny, our in-depth analysis delves into the implications and outlines the urgent actions required to survive the headwind faced by the offshore wind energy industry. Dive into the analysis: https://lnkd.in/gNEzEw2a #OffshoreWind #RenewableEnergy #Sustainability #EnergyTransition #WindPower #FutureBridge

The European offshore wind nations have increased their offshore wind development targets drastically. Read our insights here. https://lnkd.in/eJkYG9dw #Belgium #ESG #energy

With global government targets for 2030 exceeding 400 GW, offshore wind is expected to play a major role in the energy transition. However, the current macroeconomic environment is challenging this momentum and putting pressure on both growth and profitability. Discover more in our latest report delving into the challenges and potential of the offshore wind industry. ➡️ https://mck.co/4bKtzxi #OffshoreWind #RenewableEnergy #EnergyTransition

With global government targets for 2030 exceeding 400 GW, offshore wind is expected to play a major role in the energy transition. However, the current macroeconomic environment is challenging this momentum and putting pressure on both growth and profitability. Discover more in our latest report delving into the challenges and potential of the offshore wind industry. ➡️ https://mck.co/4bKtzxi #OffshoreWind #RenewableEnergy #EnergyTransition

Investing in offshore wind is crucial for our future — it is a clean, renewable energy source that significantly helps communities worldwide meet their net-zero targets. Take a look at this analysis from McKinsey & Company “In this article, we discuss why the industry has been so hard hit and when it could reemerge into structural profitability. We delve into potential scenarios—based on in-depth discussions with industry executives and leaders—that could affect the outlook of the industry. We conclude with key steps that developers can take to ensure ongoing growth.” Despite current macroeconomic pressures, the potential for 20,000 GW of fixed offshore wind and 50,000 GW of floating offshore wind globally highlights its vast capacity to support a sustainable energy future.

With the recent turbulence around the US OSW market, and the pending impacts stemming from the upcoming presidential election, I found this article by McKinsey & Company to be a pragmatic assessment of the challenges ahead, while exploring how to maximize the tremendous upside from this emerging power generation technology.

🔍 Our new report delving into the challenges and potential of the offshore wind industry has launched! With global government targets for 2030 exceeding 400 GW, offshore wind is expected to play a major role in the energy transition. However, the current macroeconomic environment is challenging this momentum and putting pressure on both growth and profitability. Discover more about the future of offshore wind. Read here: https://mck.co/4bFxiMD #OffshoreWind #RenewableEnergy #EnergyTransition

The offshore wind industry is facing significant challenges in the current macroeconomic environment. The ‘just for the heroes’ scenario expects that the industry will continue to grow despite its challenging cost position. Profitability will be structurally reset as the offshore wind margin premium evaporates compared to onshore renewables. In this scenario, industry leaders who are present in the “right” markets will be able to realize value-accretive projects. Developers can take steps to navigate this changing landscape to ensure continued growth. By taking smart market bets, actively considering consolidation, maximizing efficiency, and collaborating strategically with suppliers, developers can position themselves to thrive in volatile times. While the industry’s future profitability is uncertain, there are early signs of improvement, and we remain optimistic about the potential of offshore wind as a clean and renewable energy source. Many thanks to Sverre Akersveen, Tarje Rusten Wang, Andreas Schlosser, Florian Kühn, Alexander Weiss, Knut Aanstad, and many others who drive our offshore wind work and research as part of McKinsey's Offshore Wind Hub. #OffshoreWind #RenewableEnergy #EnergyTransition

The European offshore wind nations have increased their offshore wind development targets drastically. Read our insights here. https://lnkd.in/gBA3uZj5 #Belgium #ESG #energy