North Sea offshore wind expansion must increase sevenfold to meet 2030 targets - consultancy
Handelsblatt / Clean Energy Wire
Countries bordering the North Sea must increase the expansion rate of offshore wind sevenfold in order to meet targets agreed upon in 2023 to have 120 gigawatts (GW) of offshore wind by 2030, reported business newspaper Handelsblatt based on an analysis by Boston Consulting Group (BCG). Germany’s total offshore wind capacity is 9.2 GW, including 1.8 GW in the Baltic Sea, with the country aiming for 30 GW by 2030.
The report comes ahead of the international North Sea Summit on 26 January, hosted by the German government in Hamburg, which aims to facilitate cross-border cooperation in the development of offshore wind energy and hydrogen infrastructure, the government said. Ministers from Germany, Belgium, Denmark, France, the UK, Ireland, Luxembourg, the Netherlands, Norway, and the European Commission are invited to attend, alongside Iceland and NATO for the first time. A previous summit in Belgium, where the initial target of 120 GW by 2030 was decided upon, occurred in 2023 during the gas supply crisis following the Russian attack on Ukraine.
The expansion of offshore wind struggled last year in Germany when the final auction in August failed to attract any bids. In previous years, bidders had paid billions to secure rights to specific areas, with the willingness to pay having plummeted and risks considered too high, reported Handelsblatt. BCG also highlighted that the implementation time for offshore wind projects has increased recently, further delaying expansion. The firm recommended switching to bilateral contracts for difference, which guarantee operators a fixed price for the electricity they generate but caps profits over a certain margin.
The German economy ministry told Handelsblatt that it has considered the idea of bilateral contracts as a solution to offshore wind’s woes. Stefan Thimm, managing director of the German Offshore Wind Energy Association (BWO), told Handelsblatt that targets cannot be achieved under the existing framework. “Only with planning security and a reliable market design can we realise the necessary expansion of offshore wind energy at the required speed,” he said.
Germany hasn’t installed a single offshore wind turbine since the end of 2024. Grid operators in the Baltic Sea also published their first comprehensive regional system report for offshore network infrastructure and offshore wind, aiming for better cooperation.