Rue d’Arlon 80

1040 Brussels,Belgium

T. +32 2 213 18 97

info@gwec.net

www.gwec.net

Global offshore summit

Taiwan

Ben Backwell, CEO, GWEC

25 April 2019

Main text to go in this space

• Bullet

• Bullet

• Bullet

Heading in this

space

Share of onshore and offshore based on

new installations, per cent and GW

* Compound Annual Growth Rate - CAGR

Source: GWEC Market Intelligence

Global offshore wind to drive wind market growth

99% 95% 91%83%

9%17%

2015

1%

2010

64GW

5%

2023e2018

39GW 51GW 59GW

Offshore Onshore

Average annual growth rate onshore vs

offshore 2018 to 2023*, per cent

Offshore

Onshore

18 per cent

3 per cent

GWEC Offshore Market Outlook to 2030 – Over 200GW total capacity

23

30

35

50

10

Total installations 2018

60

2

Business-as-usualNew installations

2019-30

Upside scenario -Additional potential

Total capacity by 2030

156

~210

Europe

USA

Asia ex China

China

Other

Total installationsGW, offshore

* CAGR = Compound Annual Growth Rate

Source: GWEC Market Intelligence

New markets, floating

technology, additional

capacity in existing

markets

2029e

4,51,6*

2018 2028e2025e

1,82,7

0,8

20,8

2,3

2019e

4,3 5,23,1

4,0

0,0

2020e

5,3

2027e

3,0

10,1

2,0

4,3

11,2

0,50,8

5,65,6

16,2

2022e

1,0

4,84,9

2023e

14,0

5,3

7,6

6,4

2,0

1,0

9,2

6,0

2026e

1,0

9,4

2,0

2,0

1,0

11,2

7,1

2030e

10,4

2024e

4,3

6,0

8,3

9,9 9,8

16,6

20,2 20,3

2021e

6,6

CAGR**+11,3%

CAGR**+12,9%

Other

EuropeNorth America

Asia

New installationsGW, offshore

GWEC Offshore Market Outlook to 2030

* Chinese installation adjusted to 1.6 GW new installations for 2018, Source: CWEA

** CAGR = Compound Annual Growth Rate

Source: GWEC Market Intelligence

Main drivers of growth – Bids and LCOE continue to decrease

* H2 2018

Source: GWEC, BNEF H2 2018 Offshore Market Outlook, BloombergNEF LCOE Database April 2019

Levelized offshore wind bids,USD/MWh by year of commissioning

Forecasted Levelized cost of electricity offshore windUSD/MWh

0

80

100

70

90

60

50

110

120

20262018* 2020 2022 2024 2028 2030

Offshore wind LCOE to drop by 56 per cent until 2030

Offshore wind is one of the most dynamic new industries in the world…

1991, Vindby the worlds first

commercial wind farm is

installed in Denmark with 11

450kw turbines

Offshore wind is one of the most dynamic new industries in the world…

2019 – First power from

1.2GW Hornsea Wind Farm –

the world’s largest project

which can supply 1 million

people with power

2019 – Projects begin

construction with 9.5MW

turbines

2019 – UK commits to 30pc of

power from offshore wind by

2030

* Average turbine size

Source: GWEC Market Intelligence, WindEurope, Press

Innovation and efficiency are key growth drivers

0

10

20

30

40

50

60

70

80

20101995 20052000 2015 2020 2025Year

Average units per project

0.75-1MW

2.5MW

3.8MW2.7MW

6.8MW

Average Power Rating (MW)

Total capacity and power rating to increaseOffshore wind turbine size development*

Selected future offshore turbine models

• GE Haliade 12MW - X

• MHI Vestas V164-10MW

• SiemensGamesa 193-10MW

• Goldwind 184-8MW

10-12MW

Resulting in a new generation of mega turbines…..

From new to experienced markets

Source: Bloomberg NEF

• Early projects demonstrate

the technical, regulatory,

legal and financial

practicalities and start to

build the supply chain

• As the market develops

costs fall, experience is

gained and supply chain

gets established

• Then a phase change

happens as market

confidence builds, full

competition occurs and low

cost finance enters

Main drivers of growth – Supply chain growth

* LCOE refers to projects signed during the given year, but not the LCOE of the installed volume: time lag between project signature and

installation is 4-5 years

Source: GWEC, BloombergNEF H2 2018 Wind LCOE Update, Renewable UK

143 140

132 125111

8778 72 66

0

50

100

150 145

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

12

4

0

8

2,92,1

6,9

4,5

1,3

3,75,1 5,2

8,2

0,9

48%43%36%20%

LCOE UK Offshore WindUSD/MWh

Total offshore installations in UKGW

Share of gross value addPer cent

Average LCOE reduction per

year: - 8%

Average growth of total installations per

year: +23%

Increase of gross value add: +28%

Germany – Steady support drives growth of local work force

* Defined as “gross employment” covering all employment areas within the industry (manufacturing, marketing, administration etc.) divided into either maintenance or new-build manufacturing** EEG – “Erneuerbare Energie Gesetz” – German laws regulating the support for renewables including offshore windSource: BMWI/ AGEE (2016 – latest available data), Deutsche Bank Analysis

Employment in the German offshore industry* and added offshore capacity

2.0 3.05.0

17.0 17.514.4

19.6

3.3

0

1,000

2,000

3,000

4,000

5,000

0

5

10

15

20

25

30

2011

17.7

20142009 20122010

15.4

2013

0.7 1.3

2015 2016

18.8 18.720.2

27.2

5.8

7.6Manufacturing

Maintance

‘000 employees

EEG** 2000Focus to scale-

up generation

EEG** 2009Focus on LCOE

reductions

EEG** 2012Focus on introducing market-based options (e. g.,

option to chose market premium, ladder tariff, introduction of offshore auctions)

Impact of continued and transparent support

• Capacity growth and investments

• Build-up of skilled and trained local workforce

• Steady increase of jobs beyond manufacturing –O&M jobs last for minimum of 25 years

MW

Benefits from offshore wind

Expected benefits to Taiwan

over next five years

- 20 per cent electricity from

renewables by 2025 (target)

- Reduce carbon emissions by

10.5 bn metric tons

- Spur investments of 963 bn

NTD

- Create 20,000 job

opportunities

- Offshore wind to offset slow

down of economic activities

related to certain economic

challenges

Electricity

generation mix

• Through large-scale capacity additions, the

share of renewables/ offshore wind of the

total electricity mix will increase

Carbon

emissions

• Also, large-scale additions to improve

carbon footprint and to lower emissions

Spurring

investments

• Sustainable investment in supply chain, work

force, local project development/ EPC

Job creation

• Trained and qualified work force

development – creation of sustainable job

opportunities

Economic

development

• Development of local industry to provide

alternative or additional growth to market’s

overall economy

Governments to spur offshore growth

Source: GWEC Market Intelligence, CarbonTrust, Linklater

Robust permitting

➢ Transparent and reliable permitting process

➢ Alignment of federal, regional and municipal authorities

on responsibilities and processes

➢ Permitting suited for project life time of 25 to 30 years

Legal challenges

➢ Certainty of legal processes and decisions, e. g., use of

technology, safety rules

➢ Reliable processes for Environmental Impact Assessments

Grid availability

➢ Long-term grid planning to guide installation planning

and timelines

➢ Sufficient grid access and grid lines to evacuate offshore

wind energy

Rue d’Arlon 80

1040 Brussels,Belgium

T. +32 2 213 18 97

info@gwec.net

www.gwec.net

Thank you!For more information please contact:

Ben Backwell I ben.backwell@gwec.net