WindEurope has called for a new deal to revive Europe’s offshore wind sector, warning that current investment levels and government action are insufficient to meet energy goals.
The organisation said offshore wind is critical for Europe’s energy security, affordability and climate targets but added that the continent is not building enough to stay on track for 2030.
Europe was expected to reach 120GW of offshore wind capacity by 2030 but has only 37GW today and is on course for around 70GW, according to WindEurope.
The association said failed auctions in Germany, France, the Netherlands, Denmark and Lithuania, along with lower-than-expected results in the UK, underline the weakness of the current business case.
WindEurope said governments are beginning to move away from negative bidding models toward contracts for difference, which offer greater revenue stability, but collective efforts still fall short.
The group proposed a new deal in which governments would commit to 15GW of new offshore wind capacity annually between 2031 and 2040, including 10GW a year backed by contracts for difference.
WindEurope said this clarity would allow the industry to commit to 30% cost reductions, job creation and new investment, alongside the buildout of grid infrastructure.
The organisation also urged progress on the European Commission’s proposed Tripartite Contract framework to de-risk investments in offshore wind and industrial electrification through public sector support.
WindEurope said energy ministers meeting in Ostend should focus on how to rescue the offshore wind sector and help projects already awarded move to final investment decisions.
The group warned that without urgent action, Europe risks losing investment, jobs and technology leadership and undermining its decarbonisation and energy security goals.