A new Investment Pact unveiled at the North Sea Summit in Hamburg will mobilise €1tn of economic activity for Europe’s offshore wind sector, according to WindEurope.
Seven Heads of State and Government and the Energy Ministers of the nine North Seas countries said the agreement charts a massive buildout of offshore wind to bolster energy security and competitiveness.
The governments involved pledge to deliver 15GW of offshore wind annually over 2031-2040 and to de-risk new projects.
The governments, wind industry and transmission system operators signed the Offshore Wind Investment Pact for the North Seas, which is supported by a Heads of State Declaration, an Energy Minister Declaration and an Industry Declaration signed by more than 100 companies.
The summit confirmed an ambition among Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the UK to build 300GW of offshore wind in the North Seas by 2050.
Offshore wind deployment to date has reached 37GW across 13 countries, comprising more than 6000 turbines, but progress has been hampered by sub-optimal auction design, higher capital costs and uncertain project pipelines, according to WindEurope.
The pact commits governments to provide planning and investment security, including two-sided contracts for difference as the standard auction model and the removal of regulatory obstacles to power purchase agreements.
According to the WindEurope, a coordinated and steady buildout of 15GW a year in the 2030s will give the supply chain confidence to invest in new manufacturing capacity, port infrastructure and vessels.
Europe’s offshore wind industry pledges a 30% cost reduction towards 2040 compared with 2025 levels driven by scale, lower capital costs and further industrialisation underpinned by pipeline visibility.
The industry also commits to creating 91,000 additional jobs and investing €9.5bn in the value chain including manufacturing, ports and vessels, the trade body said.
Transmission system operators will meanwhile identify 20GW of economically promising cross-border projects by 2027 for delivery in the 2030s, including hybrid schemes and projects in one country connected to another, and will develop cost-sharing principles.
“Today Europe doubles down on offshore wind. Government cooperation on offshore wind buildout can help crowd in €1trillion of investments in the next decade. This is the best possible response to those who doubt Europe. And our drive to deliver energy that is homegrown, secure and affordable”, said WindEurope interim chief executive Malgosia Bartosik.