$20 Billion to Flow into European Offshore Substations this Decade

June 22, 2024  –As offshore wind installations gather pace worldwide, Europe is set to see a significant surge in demand for offshore substations, with a total investment of $20 billion required to install 137 substations by 2030. According to Rystad Energy research, over 120 of these facilities will be installed between 2024 and 2030, at a cost of around $18 billion.

Offshore substations play a crucial role in the offshore wind industry, collecting power generated by wind turbines and transmitting it to shore. With projects exceeding 1 GW of capacity requiring multiple substations, the increased scale of offshore wind projects and their distance from shore are driving the demand for substations.

Many European countries have set ambitious offshore wind installation goals, which are expected to transform the continent into a hub for substation activity. In 2024 alone, Europe is set to install eight new offshore substations, double the number installed last year.

The surge in substation developments is being fueled by the increased scale of offshore wind projects and their distance from shore. With floating wind technology expected to take off in the early 2030s, the need for offshore substations is set to increase further.

Offshore substations can be divided into two sub-components: the topside, which contains the main electrical power system, auxiliary systems, and the topside housing; and the foundation, which holds the weight of the topside structure. Jackets – fixed to the seabed with piles at each leg – have been the preferred foundation concept for most offshore substations since they can support wider and larger structures.