The offshore wind sector in the Asia-Pacific (APAC) region is poised for significant transformation as Japan and South Korea accelerate their development to match Taiwan's established capacity by 2028. Siemens Gamesa Renewable Energy SA, a leading wind turbine manufacturer, anticipates the APAC market will evolve into a balanced "one-third, one-third, one-third" distribution among these three countries in terms of annual installations by the end of the decade. This shift marks a critical juncture in the region's renewable energy landscape, which is set to experience rapid growth over the next few years.
During a recent industry event, Gero Tschierschke, Head of Business Development at Offshore Siemens Gamesa, highlighted this outlook, pointing to key projects that are paving the way for future expansion. The completion of two major projects—the 112 MW Ishikari project in Japan and the 99 MW Jeonnam project in South Korea—has provided valuable insights for scaling up efforts across the region. "We see a market shift into more of a one-third, one-third, one-third setup," Tschierschke said, emphasizing the anticipated equal distribution of capacity growth among Taiwan, Japan, and South Korea by 2028.
Siemens Gamesa's foothold in APAC based on secured orders
Credit: Siemens Gamesa Renewable Energy
Global competition for resources: A growing challenge
This rapid growth in the APAC market coincides with intensified global competition for critical resources. While Europe remains the dominant offshore wind market, the United States is projected to add 26 GW of capacity between 2028 and 2030. The surge in offshore wind development in the US and Europe is putting pressure on the availability of installation vessels, key components, and skilled personnel—resources that are also in high demand in APAC.
To navigate these challenges, Siemens Gamesa is adopting a regional integration strategy. The company has signed a strategic framework agreement with Doosan Enerbility in South Korea, creating a linked production system between South Korean factories and pre-production facilities in Taichung, Taiwan. This approach aims to optimize supply chains, share equipment across markets, and facilitate the mobility of skilled labor between countries, ensuring that projects can be completed efficiently despite global competition for resources.
Credit: Siemens Gamesa Renewable Energy
Regional integration: Optimizing supply chains and talent mobility
To manage resource constraints and streamline production, Siemens Gamesa is exploring ways to integrate supply chains across the APAC region. For instance, South Korea boasts strong cable suppliers, while Japan is home to key component manufacturers for wind turbines. By leveraging these strengths, Siemens Gamesa and other developers aim to foster cross-country collaboration, reducing bottlenecks and improving overall project efficiency.
On the turbine side, the company is focusing on utilizing shared resources. Rather than building new factories in each country, Siemens Gamesa is connecting suppliers across the region. Pre-production may take place in one country, with final assembly completed in another. This cross-supply strategy is not only more cost-effective but also ensures that production can meet the growing demand for offshore wind projects.
In addition to optimizing the supply chain, Siemens Gamesa is addressing the growing need for skilled personnel. Taiwan, which has been a frontrunner in APAC's offshore wind market, has developed a strong talent pool. The challenge now is to transfer this expertise to other markets, such as Japan and South Korea, as those countries scale up their offshore wind operations. A regional approach to talent development will be critical in ensuring that APAC can keep pace with global offshore wind leaders.
Credit: Siemens Gamesa Renewable Energy
Among the three major markets in APAC, South Korea is emerging as a frontrunner in floating offshore wind technology. By the end of the decade, the country aims to develop large-scale floating projects, some with capacities of up to 700 MW. This aggressive approach contrasts with Taiwan's more measured efforts and positions South Korea to become a leader in floating wind technology.
Japan, though slower to develop floating wind projects, is also expected to make significant strides by 2030. With regular auctions and established offshore wind zones, the country is poised to become a major player in the floating wind market, further diversifying its renewable energy portfolio.
Credibility and competition in APAC
While the outlook for offshore wind in APAC is largely positive, Tschierschke highlighted concerns about the credibility of certain markets, particularly in South Korea and Taiwan. Unlike more established markets in Europe, where project materialization rates are as high as 95%, there remains uncertainty in APAC regarding the successful completion of projects post-auction.
Tschierschke contrasted the situation in APAC with regions like the Netherlands, where projects are far more likely to materialize after being awarded. For APAC to realize its full potential, it will need to address these challenges and ensure that projects move smoothly from auction to completion.
The offshore wind market in APAC is poised for remarkable growth over the next decade, with Taiwan, Japan, and South Korea leading the charge. As the region scales up its capacity, floating wind technology, particularly in South Korea, will play a key role in shaping the future of renewable energy in APAC. However, competition for resources and the credibility of certain markets remain challenges that need to be addressed.
