Offshore wind installations are accelerating globally, driving the need for robust infrastructure to channel the generated power to the grid. In Europe, this surge has led to a booming demand for offshore substations. Rystad Energy's research indicates that 137 offshore substations will be installed in continental Europe by 2030, requiring a total investment of $20 billion. From 2024 to 2030 alone, over 120 facilities will be set up at a cost of approximately $18 billion, with annual spending expected to rise from $1.4 billion to $8.4 billion by 2030.

Rising Demand for Offshore Substations

Substations are pivotal in offshore wind projects, as they collect and transmit power generated by wind turbines to the shore by increasing operating voltage. These substations are particularly beneficial for projects over 200 MW and located more than 15 km offshore, helping minimize power transmission losses. They are also essential for electrifying offshore oil and gas platforms.

European Offshore Wind Goals Drive Growth

The growth in substation development is fueled by larger and more distant offshore wind projects, with some exceeding 1 GW capacity and requiring multiple substations. Many European countries have ambitious offshore wind targets, transforming the continent into a hub for substation activity. In 2024, Europe will install eight new offshore substations, doubling last year’s number. Initially, these will be confined to wind projects within 50 km of the coast, but installations beyond this range are expected to surge in the latter half of the decade.

Future Prospects and Technological Advances

Spending on offshore substations will increase significantly, supported by the growing installed capacity in Europe and the anticipated rise of floating wind technology. Floating wind turbines, situated far from shore, could lead to the first floating substations by the early 2030s.

Offshore substations comprise two main components: the topside, housing the electrical power system and auxiliary systems, and the foundation, supporting the topside structure. Jackets, fixed to the seabed with piles, are the preferred foundation for their ability to support larger structures, while monopiles are also used in some projects. Of the nearly 100 offshore substations installed in Europe from 2014 to 2016, jackets accounted for about 70%, with monopiles less than a quarter.

Source: rystadenergy.com