Forecasting the Next Decade of US Offshore Wind Cable Demand
SubCableWorld (SCW), the definitive data and information source for the submarine cable industry, today released a new whitepaper that suggests demand for submarine wind power cables in the US could surpass 13,500 kilometers by 2030, representing a CAGR of nearly 11% from 2019 to 2030. The total value of the US offshore wind cable market over the 12-year period will amount to at least $8 billion.
The news comes amid growing commitment by the Northeastern states to develop offshore wind in the US under an ambitious and encouraging timetable. Questions remain, however, about the urgent need to develop a robust wind cable supply chain to satisfy the long-term demand for cable and installation services.
SCW’s paper, Forecasting the Next Decade of US Offshore Wind Cable Demand, provides in-depth data and analysis to help scale the opportunity and challenge ahead. Commenting on the prospects for the US supply chain, SCW editor John Manock said,
“Offshore Wind in the US will be a multi-billion-dollar market, with subsea power cables playing a central role in the supply chain. Being able to model demand over the coming decade will prove essential for planning production schedules and future offshore infrastructure as we look to build out the United States’ renewables energy capacity.”
All forecasts are based on SCW’s proprietary model for calculating offshore wind cable demand, the methodology of which is detailed in the report, but there are a number of plausible scenarios that could play out over the coming years.
“Our model projects three possible scenarios in the US over the coming decade, the first of which assumes a baseline demand built around state procurement commitments and lease awards to date. The second and third, however, factor in additional state procurements and varying timetables for floating wind deployment,” continued Mr. Manock.
While SCW is perhaps better known for its 30-year coverage of the subsea fiber optic industry, in recent years has taken a leading role in the analysis of the US offshore wind cable market and in January 2020, in partnership with the Business Network for Offshore Wind, hosted the first conference to focus exclusively on offshore wind power cables in the US.
Commenting on the prospects for the US supply chain, president and CEO of the Business Network for Offshore Wind Liz Burdock said: “Tomorrow’s offshore wind farms electricity infrastructure will bring hundreds of jobs and manufacturing opportunities to America’s shores. The offshore wind industry is a blossoming new market opportunity worth millions of dollars – modeling future demand will allow the US to plan for future production and infrastructure.”
To find out more about how to purchase the report or full membership to SCW’s services, including the recently published 2020 Submarine Fiber Optic Market Report, click here.