Offshore Wind in Asia Pacific: Big Plans, Slow Progress

Offshore Wind in Asia Pacific: Big Plans, Slow Progress

Asia-Pacific countries have announced ambitious offshore wind targets, but most projects remain stuck in early stages, with few turbines yet to be installed, a new industry report shows.

According to the Asia-Pacific Offshore Wind Insight Report released by the UK-based Energy Industries Council (EIC), the region aims to develop over 270 gigawatts (GW) of offshore wind capacity. However, a lack of construction progress, permitting delays and supply chain constraints continue to hold back real-world implementation.

Australia has the largest pipeline in the region, with an estimated 100 GW across 45 projects. Yet none have entered the construction phase.

“Despite having one of the largest offshore wind pipelines in APAC, 97.83% of projects remain in the feasibility or planning stages,” the report said. It added that no offshore wind farms in Australia are expected to come online before 2030.

Australia has granted feasibility licences in three of its six declared offshore zones. The Gippsland region in Victoria is the most advanced, with 12 projects approved for site viability assessments, though no commercial licences have been issued.

Slow Progress Across Key Markets

South Korea, with a 53.2 GW pipeline, recently concluded its first competitive auction, awarding five projects, including a 750-megawatt (MW) floating wind farm by Norwegian energy giant Equinor. But only two wind farms are currently operational.

Developers in South Korea face challenges in grid access, permitting and infrastructure. “Grid congestion risks remain high, and developers must fund and build their own offshore substations and connections,” the report noted.

Taiwan Offshore Wind Market 

Taiwan, the most advanced offshore wind market in the region, has 2.7 GW already operational. However, it is now expected to miss its government’s 2025 target of 5.7 GW, achieving just 4.6 GW by the deadline.

Recent auctions in Taiwan failed to meet planned capacity due to inflation and financing pressures. The report said the auction process lacks certainty, with awarded contracts not always guaranteed.

Fate Of Projects In Vietnam 

Vietnam’s offshore wind sector has seen major international players, including Ørsted and Equinor, exit the market amid continued regulatory uncertainty. While the country operates over 1.4 GW of nearshore wind, no offshore projects have been approved.

“Nearly all projects remain in the feasibility stage, and none have entered the consenting phase,” the report said, adding that Vietnam still relies on direct project approvals and has yet to implement formal offshore wind auctions.

In Japan, eight offshore wind farms are operational, contributing about 300 MW to the grid. The country’s pipeline stands at 10.9 GW, but floating wind — seen as critical to future growth — remains in its infancy. Just 26% of Japan’s pipeline uses floating wind technology.

Supply Chain Gaps and Local Content Push

The report also assessed regional supply chains, finding that most available services today are linked to operations and maintenance (O&M), installation, and cable supply — typically provided by companies active in the oil and gas sector.

In contrast, essential turbine components such as nacelles, towers and substations are mostly imported, with limited domestic manufacturing capacity across the region.

Governments have responded by introducing local content requirements. Japan aims for 70% local content in offshore wind projects by 2040. South Korea targets 50% local sourcing for turbine costs. Taiwan enforces one of the most stringent mandates in the region, requiring 60% local content.

“Bold Targets, But Slow Delivery”

Rebecca Groundwater, Head of External Affairs at EIC, said that while government targets are ambitious, execution remains a challenge.

“Many of the markets we looked at have bold targets and declared zones, but the actual mechanisms — auctions, grid access or permitting — are still catching up,” she said. “Until those are solved, most of the activity is unlikely to go far beyond paperwork.”