Title page 1

Contents 3

ACKNOWLEDGEMENTS 8

FOREWORD - WORLD BANK GROUP 9

FOREWORD - GLOBAL WIND ENERGY COUNCIL 11

EXECUTIVE SUMMARY 13

INTRODUCTION 19

CHAPTER ONE: STRATEGY 24

1.1. INTRODUCTION 23

1.2. OFFSHORE WIND AS PART OF AN ENERGY STRATEGY 25

CHAPTER TWO: POLICY 36

2.1. INTRODUCTION 37

2.2. VOLUME AND TIMESCALES 43

2.3. COST OF ENERGY 51

2.4. LOCAL JOBS AND ECONOMIC BENEFIT 58

2.5. ENVIRONMENTAL AND SOCIAL SUSTAINABILITY 64

2.6. STAKEHOLDER ENGAGEMENT 69

CHAPTER THREE: FRAMEWORKS 72

3.1. INTRODUCTION 73

3.2. ORGANIZING FRAMEWORKS 74

3.3. MARINE SPATIAL PLANNING 82

3.4. SEABED RIGHTS 92

3.5. PERMITTING 105

3.6. OFFTAKE AND REVENUE 118

3.7. EXPORT SYSTEM AND GRID CONNECTION 135

3.8. HEALTH AND SAFETY 143

3.9. STANDARDS AND CERTIFICATION 146

3.10. COMMUNITY BENEFIT 147

CHAPTER FOUR: DELIVERY 151

4.1. INTRODUCTION 152

4.2. SUPPLY CHAIN 153

4.3. PORTS 165

4.4. TRANSMISSION NETWORK 172

4.5. FINANCING 174

4.6. COLLABORATION, CAPABILITY AND PARTNERSHIPS 183

CHAPTER FIVE: NEXT STEPS 186

APPENDIX A: RECOMMENDED FURTHER READING 190

APPENDIX B: REFERENCES 206

APPENDIX C: GLOSSARY 235

Tables 5

TABLE 3.1. COMPARISON OF DIFFERENT FORMATS FOR SEABED RIGHTS AWARDS 96

TABLE 3.2. EXAMPLES OF RENTAL FEES (NOT INCLUDING OTHER FEES) FOR OFFSHORE WIND LEASES 104

TABLE 3.3. COMPARISON OF PERMITTING PROCESSES IN THE NETHERLANDS, THE UK (ENGLAND AND WALES) TAIWAN, CHINA AND US 108

TABLE 3.4. COMPARISON OF COMPETITIVE PROCESSES TO AWARD REVENUE SUPPORT IN THE NETHERLANDS, THE UK, AND THE US 130

TABLE 3.5. ADVANTAGES AND DISADVANTAGES FOR DIFFERENT EXPORT SYSTEM BUILD AND OPERATE APPROACHES 142

TABLE 4.1. PORTS FOR FIXED OFFSHORE WIND - TYPICAL ATTRIBUTES FOR A 1 GW FIXED FOUNDATION WIND FARM 165

TABLE 4.2. PROS AND CONS OF PUBLICLY OWNED VS PRIVATELY OWNED PORTS 170

Figures 4

FIGURE IN.1.1. STRATEGY, POLICY, FRAMEWORKS AND DELIVERY: THE FOUR KEY PILLARS FOR SUCCESSFUL DEVELOPMENT OF OFFSHORE WIND 20

FIGURE 1.1. KEY CONSIDERATIONS FOR THE DEVELOPMENT OF AN OFFSHORE WIND STRATEGY 25

FIGURE 1.2. LCOE AND CUMULATIVE NET BENEFIT OF OFFSHORE WIND IN A HIGH-VOLUME EMERGING MARKET 27

FIGURE 1.3. COMPARISON OF GROSS JOB CREATION BY DIFFERENT ENERGY TECHNOLOGIES BY LEVEL OF INVESTMENT 29

FIGURE 1.4. MEDIAN LIFECYCLE EMISSIONS OF DIFFERENT ENERGY GENERATION SOURCES 30

FIGURE 1.5. TRANSITION FROM COAL TO WIND PROVIDING THE LARGEST SHARE OF ELECTRICITY GENERATION IN THE UK 31

FIGURE 2.1. KEY POLICY LEVERS TO IMPLEMENT AN OFFSHORE WIND STRATEGY 37

FIGURE 2.2. POLICY BALANCE BETWEEN COST OF ENERGY AND LOCAL ECONOMIC BENEFIT IN THE EARLY STAGES OF EMERGING MARKETS 40

FIGURE 2.3. EXAMPLES OF PUBLISHED NATIONAL OFFSHORE VOLUME WIND TARGETS, EXPRESSED AS FRACTION OF CURRENT MARKET DEMAND 43

FIGURE 2.4. CONTRIBUTION OF FIVE OCEAN-BASED CLIMATE ACTION AREAS TO MITIGATING CLIMATE CHANGE IN 2030 (MAXIMUM GTCO2E) 45

FIGURE 2.5. IMPACT OF OFFSHORE WIND IN BRAZIL UNDER BASE CASE, INTERMEDIATE AND AMBITIOUS SCENARIOS, 2024 TO 2050 47

FIGURE 2.6. EXAMPLE TIMESCALES FROM ESTABLISHING INITIAL POLICIES AND FRAMEWORKS THROUGH TO THE DELIVERY OF THE FIRST GIGAWATT... 48

FIGURE 2.7. COST OF ENERGY REDUCTION TRAJECTORY IN ESTABLISHED MARKET 52

FIGURE 2.8. TYPICAL LCOE BREAKDOWN OF A REPRESENTATIVE PROJECT IN AN EMERGING MARKET, INCLUDING IMPACT OF KEY PHYSICAL PARAMETERS 53

FIGURE 2.9. KEY RESULTS FROM THE CROWN ESTATE COST REDUCTION STUDY 56

FIGURE 2.10. JOBS FROM A SINGLE 1 GW OFFSHORE WIND PROJECT IN AN EMERGING MARKET 61

FIGURE 2.11. EXAMPLES OF LARGE ITEMS THAT ARE APPROPRIATE TO MANUFACTURE LOCALLY 62

FIGURE 3.1. FRAMEWORKS REQUIRED TO DELIVER AN OFFSHORE WIND INDUSTRY 73

FIGURE 3.2. APPROXIMATE VOLUME THAT NEEDS TO PASS THROUGH FRAMEWORKS EACH YEAR TO ESTABLISH A 1 GW PER YEAR PIPELINE 76

FIGURE 3.3. OVERVIEW OF FRAMEWORKS AND TIMING OF KEY COMPETITIONS IN ONE- AND TWO-COMPETITION MODELS 78

FIGURE 3.4. DIFFERENT GOVERNMENT, DEVELOPER, AND TRANSMISSION NETWORK OPERATOR ROLES IN ESTABLISHED MARKETS 79

FIGURE 3.5. SENMAP: A FLEXIBLE APPROACH TO SENSITIVITY MAPPING 86

FIGURE 3.6. THE MITIGATION HIERARCHY TO REDUCE THE IMPACTS OF OFFSHORE WIND 87

FIGURE 3.7. EXAMPLES OF SPECIFIC SITES (NEW YORK BIGHT) AND LARGE AREAS (UK ROUND 4) FOR LEASE COMPETITIONS 95

FIGURE 3.8. OBJECTIVES OF THE UK ROUND 4 LEASE COMPETITION, AS COMMUNICATED BY THE CROWN ESTATE 102

FIGURE 3.9. TYPICAL RIGHTS ALLOCATION PROCESS, BASED ON THE CROWN ESTATE'S ROUND 4 102

FIGURE 3.10. STAKEHOLDERS FOR DEVELOPERS TO ENGAGE WITH DURING PERMITTING 116

FIGURE 3.11. EVOLUTION OF FINANCIAL REVENUE SUPPORT SYSTEMS IN A RANGE OF MARKET 120

FIGURE 3.12. OVERVIEW OF OFFSHORE WIND FARM EXPORT SYSTEM AND BUILD/OPERATE APPROACHES 137

FIGURE 3.13. RADIAL AND INTEGRATED "HUB" NETWORK DESIGNS 139

FIGURE 4.1. KEY ENABLERS UNDERPINNING OFFSHORE WIND DELIVERY 153

FIGURE 4.2. INDUSTRY REPORT ON INCREASED UK CONTENT OF UK OFFSHORE WIND FARMS AGAINST EARLIER BASELINE 159

FIGURE 4.3. COMPONENTS FOR AN OFFSHORE WIND FARM AT EEMSHAVEN PORT 166

FIGURE 4.4. GENERIC MAP OF TYPICAL STAKEHOLDERS IN THE DEVELOPMENT OF A SUCCESSFUL OFFSHORE WIND INDUSTRY 183

FIGURE 4.5. RECOMMENDED TIMELINE FOR ESTABLISHMENT OF CROSS GOVERNMENT AND INDUSTRY-GOVERNMENT COLLABORATION GROUPS 184

Case Studies 6

CASE STUDY 1.1. The UK's transition away from coal generation 31

CASE STUDY 1.2. The case for offshore wind as a system balancing technology in Brazil and California 32

CASE STUDY 2.1. Strategic offshore wind plans in the UK and Viet Nam 39

CASE STUDY 2.2. Government-Industry Collaboration to Build and Evolve Policy Objectives for Offshore Wind 40

CASE STUDY 2.3. Strong Offshore Wind Policy Drivers and Legislation-UK and Poland 42

CASE STUDY 2.4. Long-Term Regional Visions for Offshore Wind 44

CASE STUDY 2.5. Brazil: The Positive Impact of Volume on Local Economic Benefit 46

CASE STUDY 2.6. Block Island-The First Demonstration Offshore Wind Farm in the US 50

CASE STUDY 2.7. Netherlands Energy Agreement 55

CASE STUDY 2.8. The Crown Estate Cost Reduction Study 56

CASE STUDY 2.9. Local Content Strategies 59

CASE STUDY 2.10. Government-led data collection campaigns to accelerate offshore wind deployment 65

CASE STUDY 2.11. Nature-Inclusive Design examples for offshore wind 67

CASE STUDY 3.1. The Role of One-Stop Shops Covering a Range of Frameworks 75

CASE STUDY 3.2. French Offshore Experience 77

CASE STUDY 3.3. Government-Industry Collaboration to Develop Frameworks 81

CASE STUDY 3.4. Sustainable Ocean Economy 83

CASE STUDY 3.5. Collaboration between Countries for Strategic Planning of Offshore Wind 84

CASE STUDY 3.6. Guidance for Early Offshore Wind SpatialPlanning (SenMap) 86

CASE STUDY 3.7. Experience of early offshore wind spatial planning in the Philippines and Viet Nam 88

CASE STUDY 3.8. Dutch Communities of Practice in the North Sea 91

CASE STUDY 3.9. Example seabed rights arrangements in the Netherlands, Taiwan, China, the UK, and the US 98

CASE STUDY 3.10. The Role of the Bureau of Ocean Energy Management in the US 101

CASE STUDY 3.11. The Planning Inspectorate in the UK 107

CASE STUDY 3.12. IFC Performance Standard 6-Biodiversity Conservation and Sustainable Management of Living Natural Resources 112

CASE STUDY 3.13. US Cape Wind and Vineyard Wind Projects 115

CASE STUDY 3.14. UK Permitting: The Value of Well-Resourced Consultees 117

CASE STUDY 3.15. UK's Final Investment Decision Enabling for Renewables Program 122

CASE STUDY 3.16. Impact of Auctions 123

CASE STUDY 3.17. The Evolution of China's Offshore Wind Market 124

CASE STUDY 3.18. Examples of failed auctions 125

CASE STUDY 3.19. The European Union's Net Zero Industry Act 128

CASE STUDY 3.20. Bankability of Offtake Agreements 132

CASE STUDY 3.21. Holistic Network Design and GB Grid Connection Reform in UK 135

CASE STUDY 3.22. Grid Curtailment Compensation Mechanism in Germany 138

CASE STUDY 3.23. Offshore Export System Ownership 140

CASE STUDY 3.24. Rentel Offshore Export System Approach 141

CASE STUDY 3.25. Taiwan, China-Health and Safety Development 144

CASE STUDY 3.26. UK's Health and Safety at Work Act 145

CASE STUDY 3.27. The Strategic Value of Community Benefits in Offshore Wind Development 149

CASE STUDY 4.1. GWEC's Mission critical: Building the global wind energy supply chain for a 1.5℃ world report 154

CASE STUDY 4.2. Support for Industrial Clusters 156

CASE STUDY 4.3. Industry-led Education and Support Programs 157

CASE STUDY 4.4. UK Content Methodology, Supply Chain Plans 159

CASE STUDY 4.5. Reducing the Carbon Intensity of Offshore Wind 163

CASE STUDY 4.6. Offshore major component replacement to reduce floating offshore wind LCOE 164

CASE STUDY 4.7. New Jersey Wind Port 168

CASE STUDY 4.8. Scottish Strategic Investment Model 169

CASE STUDY 4.9. Port Ownership 171

CASE STUDY 4.10. Financing Offshore Wind in Taiwan, China 180

CASE STUDY 4.11. The Interministerial Commission for Marine Resources, Brazil 184