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Europe’s wind industry unveiled a bold proposal to accelerate and de-risk the expansion of competitive, homegrown offshore wind energy. Central to this plan is a call for European governments to auction at least 100 GW of new offshore wind capacity between 2031 and 2040, using two-sided Contracts for Difference (CfDs) to ensure revenue stability and investor confidence.
The industry emphasizes that the offshore wind rollout must be better coordinated across countries and evenly distributed over time. A stable, predictable auction pipeline will reduce costs and support offshore wind in meeting Europe’s energy goals. In return, the industry commits to cutting offshore wind costs by 30% by 2040.
Meeting Europe’s Strategic Needs
Europe is navigating a period of profound challenge: energy is being weaponised, industrial competitiveness is under pressure, electricity prices are high, and climate commitments remain urgent. Offshore wind offers a homegrown, reliable, and increasingly affordable solution.
Over the past decade, offshore wind has scaled rapidly, slashing costs and delivering clean electricity to millions. But to meet rising demand, annual offshore wind installations must reach 15 GW in the 2030s. However, investment uncertainty, slow electrification, and high-risk auction models threaten the viability of future projects. Investor confidence is slipping.
A New Offshore Wind Deal for Europe
To turn the tide, the European wind industry is proposing a New Offshore Wind Deal that includes:
- Commitment to 100 GW in CfD Auctions: Governments should auction at least 100 GW of offshore wind over the next decade with firm political backing through fixed-price, indexed two-sided CfDs or similar instruments—creating bankable and de-risked projects.
- Consistent Commissioning: Spread project commissioning evenly—10 GW annually from 2031 to 2040—through cross-border coordination. Allow flexibility to optimize supply chains and support investment planning.
- Supportive Measures: Broader reforms are needed to accelerate electrification, enhance industrial competitiveness, and fast-track grid development and financing.
When combined with additional capacity secured via Power Purchase Agreements, this approach will build a sustainable and competitive offshore wind sector capable of delivering 15 GW annually by the 2030s.
The Industry’s Commitment
In return, Europe’s wind industry pledges to deliver:
- Capital Investment: Scaling up to meet committed volumes through investment in projects, manufacturing, supply chains, and workforce development.
- Cost Reductions: Achieve a 30% reduction in the levelized cost of electricity (LCOE) by 2040 through lower capital costs, standardisation, industrialisation, and more efficient project delivery.
- Community and Consumer Benefits: Deliver economic value, high-quality jobs—especially in coastal areas—and lower electricity bills. Enhance energy security, resilience, and timely project delivery at sustainable cost levels.
