Imagine that your everyday life were based on 100% sustainable energy. You could use energy and live your life without having to worry about contributing to climate change. To get there, we need to change the global energy systems to green energy. That is now starting to happen and offshore wind plays an important role.
Tackling climate change with green energy
The global mean temperature and the concentration of CO2 in the atmosphere are both at the highest levels ever measured. Since the Paris agreement took effect in 2016, the international community has begun a common path to address this challenge, working towards keeping the global temperature rise below 2°C.
More than one third of global CO2 emissions come from power generation. To reduce emissions, the world must replace the existing fossil-based energy system with a renewable energy system. This is now starting to happen, but there is still some way to go. Towards 2030, more than 80% of new power production capacity built in Europe is expected to be green. That will double the share of green power production in Europe to 37% by 2030. Outside Europe, the share of green power production is significantly lower, namely 7%, but it is expected to almost triple towards 2030.
Cheaper renewable energy
The cost of renewable energy is coming down rapidly. Since 2012, the cost of onshore wind has dropped by around 20%, while cost of solar has dropped by around 60%. In the same period, the cost of offshore wind energy has dropped by more than 50%.
The significant cost reductions mean that renewable energy is now approaching a point where it can start to compete head-on with conventional power production. This will make renewable energy the natural choice and one of the most efficient ways to fight climate change.
As cost declines, offshore wind attracts increased attention from new markets and investors. Offshore wind is therefore seeing strong and increasingly global growth as a clean, efficient and scalable technology. Towards 2020, offshore wind is expected to be the fastest growing renewable energy technology in Europe with an expected average growth rate of 23% a year. Offshore wind has evolved from being a niche technology to becoming a mainstream investment object among some of the world's largest energy companies and investors.