Key Insights of the DMEC Market Report on Innovative Offshore Renewable Energy Technologies

DMEC’s 2024/2025 Market Report Chapter 1 on Innovative Offshore Renewable Energy Technologies offers a unique and comprehensive overview of the latest innovations and their global developments. It includes insights on the key following offshore renewable energy technologies: tidal, wave, offshore solar, offshore floating wind energy (and salinity gradient & ocean thermal energy conversion (OTEC)).

The report is designed to guide strategic decisions across the sector, for project developers and utility companies, supply chain companies, innovators, as well as policy makers. Topics covered in the report include an overview of the status of global markets on ORE technologies, 8-10 key innovators per technology, as well as scenarios provided through DMEC’s models on how technology-, market developments and costs can develop until 2025.

Offshore solar
With rapid development in the last 2 to 3 years, global capacity of offshore solar energy is expected to grow to 40MW in 2030. The market is dominated by some European as well as a few Asian countries. Following DMEC’s modelling forecast, the LCoE is expected to reach a commercially viable level of EUR 100/Mwh between 2030 – 2032, at a learning curve of 17%. The biggest challenge in the sector is the proof of a cost efficient design in combination with survivability in the harsh offshore climate.

Tidal energy
With steadfast support of France and the UK, tidal energy has been pushed towards commercial feasibility. The first CfD in the UK for 122 MW has reached a price of EUR 176/Mwh to be deployed by 2029. Additional allocated capex support by France and the EU putting direct subsidies in place, has led to DMEC’s forecasted 320 MW of tidal energy deployment by 2030. Reaching this capacity could bring the LCoE around EUR 120/Mwh. Continuous support over the next 5 years and Europe remaining in the lead of most promising innovations, could see the growth of a multi-billion dollar EU industry.

Wave energy
After a long domination of Europe, the US started to invest heavily in wave energy projects with a budget of more than $112 Mil launched in 2024. Wave energy also gained significant traction in specialised markets like water desalination, powering of oil & gas platforms and charging of underwater vehicles. These can be a beachhead market for the larger utility scale. 2024 was a record year with more than € 60 Mil invested into wave energy. If this positive trend continues and stronger national support of additional champion countries manifests, DMEC’s modelling forecast leads to 30 GW of deployments by 2050 and a LCoE below € 100/MWh by 2036.

Floating wind energy
For floating wind, the UK, Japan, France, Ireland, Spain, Italy and Greece appear this year as the most supportive countries. China meanwhile commissioned the so-far-largest capacity installed on one floater. DMEC’s market forecast based on bottom-fixed offshore wind historic data keeps matching the market data relatively well predicting 2 GW of floating offshore wind in 2030 and up to 50 GW by 2040. Those capacities would lead to a LCoE of 121-170 €/MWh and 60-90 €/MWh respectively.

This chapter on Offshore Renewable Energy Technologies, as well as the upcoming chapters on System Integration and Nature+ Solutions, are complimentary for clients in DMEC’s Partnership Program. The chapter is also for sale via the DMEC website here. For more information on the Partnership Program and the market report, please contact DMEC’s Business Development Manager Claudia Stolk via [email protected]

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