The European wind sector has introduced a New Offshore Wind Deal for Europe, urging governments to auction a minimum of 10 GW of new offshore wind capacity annually from 2031 to 2040. Concurrently, the industry has pledged to cut the levelized cost of electricity (LCOE) by 30% by the end of the next decade. Released on April 10 during the WindEurope annual event in Copenhagen, the New Offshore Wind Deal for Europe aims to expedite and reduce risks associated with developing “homegrown and competitive offshore wind energy” as Europe confronts “unprecedented challenges.”
“Europe must tackle the weaponization of energy and enhance its energy security. It needs to boost its industrial competitiveness and make electricity more affordable while remaining committed to decarbonization,” WindEurope stated in a press release announcing the initiative.
The industry is urging European governments to auction at least 100 GW via Contracts for Difference (CfDs) over the next decade, supported by strong political backing through fixed-price and indexed contracts within an optimized, de-risked auction framework to enable bankable projects.
Additionally, the industry is advocating for the consistent commissioning of the 100 GW of new offshore wind capacity, proposing deadlines of 10 GW per year to foster market predictability through cross-border planning while allowing for sufficient flexibility in commissioning dates to optimize supply chain utilization and investments.
According to the New Offshore Wind Deal for Europe, to competitively provide offshore wind energy that meets Europe’s increasing electricity demand, annual capacity installations must reach 15 GW by the 2030s. The proposed measures in the deal—along with additional capacity supported by power purchase agreements (PPAs)—will establish a foundation for achieving this goal.
Offshore wind companies endorsing the proposal, including major developers and suppliers like Ørsted, RWE, Vattenfall, Iberdrola, Vestas, and Siemens Gamesa, have committed to reducing the Levelized Cost of Energy (LCOE) of offshore wind by 30% by 2040 by improving financing conditions and accelerating the cost reduction learning curve.
Wind energy companies have also pledged to scale the industry to meet the de-risked, committed volumes by investing in projects, manufacturing capacity, and workforce, while delivering long-term benefits to both communities and society at large.
Source: Offshore Wind
