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Europe’s wind industry has proposed a new deal aimed at accelerating the growth of offshore wind energy, addressing the urgent need for energy security, decarbonization, and industrial competitiveness. The proposal calls on European governments to auction at least 100 GW of new offshore wind energy between 2031 and 2040. These auctions should utilize two-sided Contracts for Difference (CfDs) to stabilize revenues and reduce costs, ensuring offshore wind can meet Europe’s energy objectives. The industry commits to cutting offshore wind costs by 30% by 2040.
Europe faces significant challenges, including energy weaponization, industrial competitiveness concerns, and the need for affordable electricity. Offshore wind energy, a cost-effective and reliable source of power, has grown rapidly in the past decade, providing electricity to millions of people and businesses. However, to meet growing demand, Europe must install 15 GW of offshore wind annually by the 2030s. Current uncertainties around investments, inadequate electrification, and risky auction frameworks threaten the commercial viability of these projects.
To address these challenges, the European wind industry has put forward a New Offshore Wind Deal for Europe, urging governments to take decisive action:
- Commit to 100 GW in Contracts for Difference (CfDs):
Governments should auction at least 100 GW of offshore wind capacity over the next decade, backed by strong political will and delivered through fixed-price, indexed contracts—such as two-sided CfDs—in a well-structured, low-risk auction framework that enables bankable projects. - Ensure Steady Commissioning:
The rollout of the 100 GW should be evenly scheduled, targeting 10 GW per year between 2031 and 2040. This approach would enhance market certainty through cross-border planning while maintaining enough flexibility in commissioning timelines to support efficient supply chain investment and utilization.
Alongside additional capacity supported by Power Purchase Agreements, these actions will establish the foundation for a sustainable and globally competitive offshore wind industry, enabling annual installations of 15 GW by the 2030s.
To realize this ambition, broader initiatives must also be implemented—such as accelerating electrification, enhancing the competitiveness of energy-intensive industries, and advancing grid development and financing through transformative measures.
In return, the offshore wind industry commits to:
- Mobilizing Capital for Investment:
Scale up to meet committed and de-risked volumes by investing in projects, industrial capabilities, manufacturing infrastructure, and workforce development. - Driving Cost Reduction:
Accelerate the industry’s learning curve and achieve a 30% reduction in the levelized cost of electricity (LCOE) by 2040. This will be enabled through better financing conditions, project de-risking, standardization, and further industrial efficiencies across both CAPEX and OPEX components. - Delivering Value to Communities and Society:
Generate long-term economic value by stimulating local economies, fostering high-quality employment—especially in coastal regions—and reducing electricity costs for consumers. The industry will help mitigate rising energy costs, diversify supply sources, and strengthen energy security, while ensuring projects are delivered on time, to high standards, and within budget.
