OFFSHORE WIND CHAINS FAIL CLEAN ENERGY TARGETS

As the race towards 2030 clean energy targets accelerates, the offshore wind industry is grappling with supply chain challenges that could stall progress.

A new report from Norwegian software firm Shoreline Wind highlights the challenges and opportunities in meeting clean energy targets, as developers grapple with rising costs, project delays, and intense competition. With 140 GW of new offshore wind capacity required between 2024 and 2028, the industry must nearly triple its growth rate to stay on track. However, declining strike prices and soaring investment costs are putting pressure on developers. UK strike prices have fallen from £150/MWh in 2014 to under £40/MWh in 2020, while German developers recently spent €12.6 billion securing rights for just 7 GW of capacity.

These financial strains have already resulted in failed auctions and project delays, most recently in Denmark. Smaller supply chain firms are particularly vulnerable, struggling to keep up with investment demands, labour shortages, and port constraints. Additionally, reduced capital flow from the U.S. into Europe is further complicating the situation.

To safeguard offshore wind expansion, Shoreline Wind’s report calls for stronger government support, including clearer policies and tendering processes that consider factors beyond just price.