This report evaluates the feasibility and cost of transitioning to offshore wind energy to meet global energy consumption. The focus is on installing 19.66 TW of offshore wind capacity to match the estimated global energy consumption of 620 EJ in 2023, with the transition starting in 2024.
- Global Energy Consumption (2023): 620 EJ, equivalent to an average power of 19.66 TW assuming constant production.
- Number of 19.66 MW Turbines Required: 1,000,000 turbines.
- Cost per MW:
- Low Estimate: $4 million/MW.
- High Estimate: $4.5 million/MW.
- Total Cost for 19.66 TW Capacity in 2024:
- Low Estimate: $78.6 trillion.
- High Estimate: $88.5 trillion.
Offshore wind turbine costs are projected to decrease at a compounded annual rate of 2.5%, reflecting technological advancements and economies of scale. The projected costs for installing the full 19.66 TW capacity in a single year are:
- 2024 Costs:
- Low: $78.6 trillion.
- High: $88.5 trillion.
- 2030 Costs:
- Low: $67.5 trillion.
- High: $75.9 trillion.
- 2045 Costs:
- Low: $49.6 trillion.
- High: $55.8 trillion.
If the project is executed over 11 years (2024-2034), using the low-range cost estimate, the annual spend and its percentage of world GDP were calculated:
- Annual World GDP Growth: 3%.
- World GDP in 2024: $105 trillion.
- Annual spending is proportional to the cost reduction each year, reflecting turbine price decreases.
| Year | Annual Spend (Trillions USD) | World GDP (Trillions USD) | Percentage of GDP (%) |
|---|---|---|---|
| 2024 | $7.15 | $105.0 | 6.81% |
| 2025 | $6.97 | $108.2 | 6.44% |
| 2026 | $6.79 | $111.4 | 6.10% |
| 2027 | $6.62 | $114.7 | 5.77% |
| 2028 | $6.46 | $118.2 | 5.46% |
| 2029 | $6.30 | $121.7 | 5.18% |
| 2030 | $6.15 | $125.3 | 4.91% |
| 2031 | $6.00 | $129.1 | 4.65% |
| 2032 | $5.85 | $133.0 | 4.40% |
| 2033 | $5.70 | $137.0 | 4.16% |
| 2034 | $5.56 | $141.1 | 3.94% |
- Initial spend in 2024 is 6.81% of world GDP, decreasing to 3.94% by 2034.
- Total costs for the 11-year period are distributed proportionally to account for the annual cost reductions.
- Feasibility: Transitioning to 19.66 TW of offshore wind capacity is economically viable, with costs decreasing annually due to technological advancements.
- Impact on Global GDP: The transition would require a significant but manageable percentage of global GDP, starting at 6.81% in 2024 and declining to under 4% by 2034.
- Recommendations:
- Focus on technological innovations to accelerate cost reductions.
- Implement policies to integrate wind energy into the global grid efficiently.
- Encourage global cooperation to share costs and resources.
For additional visual analysis, see the graphs provided in the detailed report.