Navigant’s BTM Consult Releases New Wind Report: Offshore Report 2013

  Navigant’s BTM Consult Releases New Wind Report: Offshore Report 2013

Report highlights the state of the offshore wind market, turbine technology
and supply chain trends, and outlook for 2012 – 2021

Business Wire

CHICAGO & COPENHAGEN, Denmark -- November 19, 2012

BTM Consult, a premier forecaster and data source for the international wind
industry and part of Navigant’s Global Energy Practice, announced today that
it has released Offshore Report 2013.

The 250+ page Offshore Report 2013 is BTM Consult’s most comprehensive
overview of the offshore wind power market to date. The report highlights
developments in the international offshore wind market over the past two
years, as well as industry growth trends as projected in the report’s
near-term forecast to 2016 and medium-term prediction to 2021. Offshore Report
2013 provides an assessment of all major offshore wind markets and incentives
across the world, as well as detailed analysis of both the demand and supply
sides of the offshore wind market in 2012. Key findings are included from the
latest update of the “balance of plant” supply situation and from BTM’s
analyses of offshore wind financing, including future CAPEX and OPEX
requirements. The report includes a special focus on the current shipping and
logistics situation for offshore wind farm construction. The analyses in the
report are based on data collected from more than 350 suppliers.

The report delivers several key data points on the growing offshore wind
market, including:

  *Offshore wind capacity contributed 470 MW (1.6 percent) to worldwide
    installations of wind power in 2011
  *Offshore wind farms totaled nearly 4 GW of operating capacity at the end
    of 2011
  *The UK continues to lead the market, with more than 2 GW of capacity
    installed, followed by Denmark with more than 830 MW, and the Netherlands
    with almost 250 MW
  *Germany and China both began installing offshore wind turbines in 2009 and
    continue to expand their portfolios
  *20 offshore wind test sites have been identified
  *Total installed capacity of offshore wind power from January 2012 to
    October 2012 was 1,314 MW
  *Offshore wind projects are currently under construction in Belgium,
    Denmark, Germany, the UK, China, South Korea and Japan—with a total
    expected capacity upon completion of nearly 100 GW
  *Offshore wind is on track for increased contribution to wind power in
    Europe
  *The average growth rate for annual new installations up to 2016 is
    expected to be 81.8 percent
  *The average annual growth rate for new installations in the projection
    period (2017-2021) is expected to be 15.6 percent

Demand

The report concludes that, by October 2012, more than 95 GW of offshore wind
capacity had been recorded in the project pipeline, of which 86 percent is in
Europe, followed by China with five percent, the U.S. and South Korea with
four percent each, and Japan with two percent. Taking into account China’s
offshore wind target of 30 GW by 2020 and project proposals made at the
provincial level, however, it is expected that China's offshore development
portfolio will soon reach at least 25 percent of the global total.

Currently, the Chinese and U.S. markets are dominated by domestic market
developers. And, due to the slow pace of progress in the U.S. and
protectionism in Chinese waters, this situation is not expected to change in
the foreseeable future. The report also identifies leading developers in South
Korea and Japan, most of which are utilities or industrial conglomerates.

Supply

2011 saw the continued dominance of Siemens in the European market, but with
several new players appearing in both Europe and China. With many years’
experience, Siemens and Vestas remain the market leaders in offshore turbines,
supplying turbines to most of the latest developments. According to the
report, it’s likely that companies such as REpower, Areva Wind, Bard and
Sinovel will see more turbines installed in the coming years, and that new
entrants from the Far East, notably China, Japan and South Korea, will soon
enter the offshore wind market.

Looking Forward

The large capital requirement of offshore wind projects has relied upon
cash-rich utilities, a trend that is expected to continue. However, the report
finds that although utilities with historically deep pockets and established
offshore wind experience will lead the sector in the future, utilities are
seeing depleted cash resources and are seeking alternative unconventional
sources of funding.

The report, however, notes that Independent Power Producers and clean energy
companies are beginning to show more confidence in offshore wind investment.
Both types of companies will account for 11 percent of global development if
all projected wind farms are installed according to plan. In addition, with
the maturation of the offshore wind sector, industrial conglomerates, private
equity groups, pension funds, and privately owned companies are entering the
market, helping to increase market investment.

In Europe, in particular, offshore wind has emerged as a leading source of
renewable energy and will help member states meet the EU's political and
environmental targets. The report predicts that by the end of 2021, Europe
will account for 63.4 percent of total global offshore wind installation and
maintain its position as global market leader. Offshore wind development in
Asia in the forecast period to 2016 is moderate, but rapid growth is expected
in the following five year period. Offshore wind power will account for 7.7
percent of global wind power installation by the end of the prediction period.

More information and report pricing for Offshore Report 2013 can be found at
www.navigant.com/offshorereport. For questions about the report, please
contact:

Denmark:                                      
Per Krogsgaard at   per.krogsgaard@navigant.com   + 45 97 32 52 99
Birger T. Madsen    birger.madsen@navigant.com    + 45 97 32 52 99
Feng Zhao           feng.zhao@navigant.com        + 45 97 32 52 99
                                                  
United Kingdom:     
Aris Karcanias      aris.karcanias@navigant.com   +44 207 015 8723
                                                  
United States:      
Bruce Hamilton      bruce.hamilton@navigant.com   +1 503 476 2711
                                                  

About BTM Consult

Founded in 1986, Denmark‐based BTM Consult is a premier forecaster and data
source for the international wind energy sector. Since 1996 BTM Consult has
annually published the highly regarded International Wind Energy Development:
World Market Update, which has guided wind related investments for more than
two decades, in addition to several other recurring globally‐focused wind
market reports including its first release of the Offshore Wind Report in
2010. On December 20, 2010, BTM Consult became part of Navigant’s global
Energy practice. Additional information about BTM Consult can be found at
www.navigant.com/btm.

About Navigant

Navigant (NYSE: NCI) is a specialised, global expert services firm dedicated
to assisting clients in creating and protecting value in the face of critical
business risks and opportunities. Through senior level engagement with
clients, Navigant professionals combine technical expertise in Disputes and
Investigations, Economics, Financial Advisory and Management Consulting, with
business pragmatism in the highly regulated Construction, Energy, Financial
Services and Healthcare industries to support clients in addressing their most
critical business needs. More information about Navigant can be found at
www.navigant.com.

* The information contained in this press release concerning the report,
“Offshore Report 2013,” is a summary and reflects BTM Consult’s current
expectations based on market data and trend analysis. BTM Consult’s market
predictions and expectations are inherently uncertain and actual results may
differ materially from those contained in this press release or the report.
Please refer to the full BTM Consult report for a complete understanding of
the assumptions underlying the report’s conclusions and the methodologies used
by BTM Consult to create the report. Neither BTM Consult nor Navigant
undertakes any obligation to update any of the information contained in this
press release or the report.

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Contact:

Navigant
Laverne Murach, +1 202-481-7336
or
BTM Consult – A Part of Navigant
Birger Madsen, +45 20 42 52 99
or
Navigant Investor Relations
Jennifer Moreno Reddick, +1 312-573-5634
 
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