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
McKinsey & Company The offshore wind industry is currently facing significant challenges due to the macroeconomic environment. This review discusses the pressures on growth and profitability within the sector, highlighted by recent project cancellations and substantial cost increases of 40 to 60 percent. Stakeholders are now questioning whether offshore wind costs can quickly return to attractive levels or if the cost advantage of onshore wind and solar will overshadow offshore wind’s favorable production profiles. 🎓🎓NICE ONE McKinsey & Company
Koshy Samuel
2mo
Useful studies and research by McKinsey & Company into Wind Energy that is cheaper than before. Wind energy is not only cheaper than before but also plays a crucial role in the transition to a more sustainable and renewable energy future. As costs continue to decline, wind power will become an even more attractive option for meeting global energy needs.
Could this have anything to do with the fact the base may have been installed for a previous turbine and tower and installing a newer unit on top of an existing base reduced operating expenses (or perhaps depreciation expenses)? My knowledge is 20 years dated but my research showed me the only way to reduce expenses was to kick depreciation expenses off into the future via structured or long-term depreciation. Expenses for these things was pretty fixed, IIRC. Curious to hear.
Could this have anything to do with the fact the base may have been installed for a previous turbine and tower and installing a newer unit on top of an existing base reduced operating expenses (or perhaps depreciation expenses)? My knowledge is 20 years dated but my research showed me the only way to reduce expenses was to kick depreciation expenses off into the future via structured or long-term depreciation. Expenses for these things was pretty fixed, IIRC. Curious to hear.
Kustodian.life
2mo
The offshore wind industry continues to hold great promise despite the challenges posed by the current macroeconomic environment. McKinsey & Company's report offers valuable insights into navigating these obstacles and unlocking the full potential of renewable energy.
Kustodian.life
2mo
Your report sheds light on the challenges and opportunities shaping this crucial sector.
InsightsEye
2mo
Very informative!
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2moMcKinsey & Company, The rapid growth of offshore wind power marks a pivotal moment in our journey towards sustainable energy. As global targets exceed 400 GW by 2030, it's clear that offshore wind will lead the charge in our renewable energy transition. Despite current economic challenges, the industry's remarkable 60% cost reduction in the past decade underscores its potential. This isn't just about numbers; it's about securing a cleaner future for generations to come. By investing in offshore wind, we're not only driving growth and profitability but also ensuring a planet that thrives on renewable energy solutions. Explore more in McKinsey & Company's insightful report on how offshore wind is reshaping our energy landscape.