China to operate 40% of global offshore wind capacity by 2050

The country’s sector is expected to advance despite high investment costs and fading subsidies.

China is projected to operate around 40% of the world’s offshore wind capacity by 2050, expected to install up to 16 gigawatts (GW) annually over the next two to three years, said S&P Global.

It is also expected to continue supplying up to 70% of the world's wind turbine nacelles and key components in the foreseeable future.

The country’s progress is also anticipated to advance despite barriers such as complex and heftier development costs relative to other renewables.

According to S&P Global Ratings’ credit analyst, Apple Li, the offshore wind sector is developing slower than onshore wind and solar power due to high investment costs and fading subsidies.

Meanwhile, China is expected to persist amidst fading subsidies, driven by favourable funding, geography, demand, and improving technology.

Moreover, state-owned independent power producers dominate the country’s market, providing stable funding for projects.