The Call to Action for European Wind Developers

With the European wind sector facing competitiveness and security challenges, wind developers in the region have issued European governments a new call to action to protect the lifeline of the industry.

EU has set a target for wind to contribute 35% of its electricity by 2035, prompting countries across the region to expand renewable energy capacity, particularly in the offshore wind sector. However, developers are concerned about the slowdown in the build-out in recent years, with the offshore sector facing increased risk and uncertainty. Factors such as cost inflation, declining commercial viability, and lower investor confidence have contributed to this trend.

At this year’s WindEurope summit, developers are urging EU governments to auction at least 100GW worth of Contracts for Difference (CfDs) over the next decade. These auctions would involve governments guaranteeing fixed price and indexed contracts to make projects more bankable.

Developers also want governments to plan commissioning deadlines for the 100GW evenly, with 10GW annually from 2031-2040. This approach aims to create market predictability and allow sufficient time for investments. These measures, supported by power purchase agreements, could help the European offshore wind industry achieve 15GW installations annually by the 2030s.

Henrik Andersen, WindEurope Chairman, stated:

“Wind energy is already driving industrial growth and energy independence across Europe, we just need to scale up. This calls for increasing viable demand for wind energy and strengthening wind’s market environment.”

One significant challenge identified for competitiveness is the high electricity prices in some European countries. WindEurope’s recent report highlights that these high prices are driven by taxes and levies, which hinder the electrification based on renewables and undermine its use in the industrial sector.

For example, the report reveals that in Spain, electricity charges for households are 19 times higher than gas charges. These disparities in costs pose a barrier to the widespread adoption of renewable energy sources.