Offshore energy storage can reduce rising wind curtailment levels in Europe as grid capacity lags generation growth, according to a report by Xodus with Subsea 7.
Annual curtailment could exceed 300TWh by 2040 across the UK, Germany, Denmark and the Netherlands without intervention, Xodus said.
In 2024, 72TWh of wind power was curtailed and this is expected to increase two to threefold by 2030, the company added.
The report outlines a three-phase roadmap to 2040 focused on technology, commercial viability and policy action.
It identifies co-located offshore storage as an immediate and scalable solution to reduce curtailment, ease bottlenecks and lower transmission charges.
“It’s becoming increasingly clear that as more wind turbines are being installed in the North Sea and elsewhere in Europe, the challenge has shifted,” said Olivier Mette, global advisory director at Xodus (pictured).
“The difficulty no longer lies in generating clean electricity, but in ensuring that the power can be stored and transported effectively.”
The report highlights offshore-adapted lithium-ion batteries as a near-term option, with long-duration storage expected to play a larger role over time.
It also calls for policy reform including changes to the UK Contracts for Difference model, which currently compensates curtailed energy.
“In a time of uncertainty and growing demand for energy security, offshore energy storage represents a pivotal step in the evolution of the offshore wind sector,” said Olivier Lodeho, technology director at Subsea7.
“The challenge now is how we maximise the value of energy at a system level and, through integrating storage with offshore infrastructure, create new commercial opportunities.”
Xodus said curtailment cost €8.9bn in congestion management in 2024 and warned this will rise without action.