The offshore wind industry has been alert since 2019. First, the global pandemic disrupted supply chains and impacted macroeconomic conditions, affecting project timelines and viability. Then, the war in Ukraine set off a new chain of events in the global economy and put energy security in Europe at risk, turning the focus to a stable gas supply. While the sector powered through, effects from both are still tangible and, in the U.S., offshore wind was recently struck with a new set of challenges.
According to WindEurope, Europe now has 37 GW of installed offshore wind capacity, including 2.6 GW of new capacity connected to the grid in 2024. The wind energy industry organization is calling for this number to increase if the 2030 targets are to be met.
The global capacity of fully operational offshore wind farms reached 80.9 GW at the end of last year, according to a report from RenewableUK. Half of this is in China, which now has 41 GW of offshore wind connected to its grid.
In Asia, besides China, Taiwan and Vietnam are moving forward with new projects under construction. The first offshore wind auction in Australia is also expected to be launched this year by the state of Victoria, after the federal government awarded several feasibility licences to offshore wind developers whose projects in the pre-designated areas now need to compete for state allocation.
UK, Netherlands Plan Big as U.S. Stops Leasing Offshore Wind Areas
Back in Europe, a number of countries are planning their first project development tenders or their next offshore wind auction, or ramping up work to add more capacity.
Two European countries, the UK and the Netherlands, have an ambitious offshore wind plan: to have most of the electricity produced by wind turbines at sea by 2030 and 2032, respectively.
UK
In December 2024, the UK government released the Clean Power 2030 Action Plan, a roadmap to an (almost) fully clean power system by 2030, with clean sources making up 95% of Great Britain’s electricity generation and gas being used for no more than 5% of total generation.
In 2023, gas provided 35% of the UK’s electricity generation, and offshore wind was the second-largest source at 17%, followed by nuclear at 14%.
With the new action plan, the UK government wants to make renewable energy, offshore wind in particular, and nuclear power the cornerstones of the 2030 energy mix, with 43-50 GW of offshore wind in operation.
Home to what is the world’s biggest offshore wind project under construction, the UK 16 GW capacity contracted or being built, and plans to procure 12 GW of offshore wind across the next 2 to 3 allocation rounds.
Netherlands
The Netherlands plans to have 75% of its electricity generated by offshore wind in 2032. The country had around 56% of its electricity produced by clean sources in 2024, with renewable energy taking over fossil energy production.
“If you plug your laptop or your phone into the socket, 56% of that electricity is from solar and wind energy, and the majority of that is now from wind energy alone”, Jan Vos, Chairman of NedZero, said on November 27, 2024 at Offshore Energy Exhibition & Conference (OEEC) in Amsterdam.
“In 2032, when you plug in your laptop or your phone, 75% of all that electricity will be produced by offshore wind alone.”
Currently, there are 4.5 GW of offshore wind in the Dutch North Sea feeding power into the national grid. By 2032, the Dutch government aims to have this up to 21 GW and, in its offshore wind roadmap, the Netherlands also outlines the path towards adding further capacity with an ultimate goal of having a total of 72 GW of offshore wind in the North Sea.
The country is also pioneering system integration, as well as nature-inclusive and nature-enhancing solutions integrated in its new projects. The push for a better integrated energy system and better used project areas, and an environmentally positive approach in the Netherlands is introduced by the government itself through tender stipulations.
This has brought forward offshore wind projects that incorporate floating solar technology, green hydrogen production plans, and solutions protecting birds and enhancing biodiversity at offshore wind farm sites.
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At OEEC in 2024, NedZero’s Jan Vos expressed certainty of the Netherlands achieving its 2032 goal, and said the success the country had seen so far was largely due to good cooperation between the government, businesses, NGOs, and other sectors like oil and gas and fishing.
U.S.
While the UK and the Netherlands have big plans for offshore wind, and China continues leading in installed capacity globally, the U.S. – which built its first offshore wind farm in 2015 and currently has around 310 MW installed – pulled back from awarding new lease areas and permits at the change of administration in January 2025.
The decision of the new U.S. administration to cease all new offshore wind leasing and conduct reviews of permitted projects has left the industry surprised, but not shocked, as U.S. President Donald Trump promised to put a stop to offshore wind during his campaign in 2024.
However, what did send a shockwave throughout the industry was the recent decision to suspend a project that had already entered the construction stage.
On April 16, the Department of the Interior (DOI) instructed the Bureau of Ocean Energy Management (BOEM) to order a construction halt on Empire Wind 1, an offshore wind farm Equinor is building in federal waters off New York and the first that will connect to the New York City grid.
The developer complied with the order and, according to an announcement by the U.S. Secretary of the Interior, the wind farm will now undergo a review of its permitting procedures. It is unknown when, and whether, Empire Wind 1 will restart construction activities.
The decision to halt an offshore wind farm mid-construction has sparked a backlash from both the industry and New York state agencies, as well as the Governor, who pointed out that the move was a warning signal to investors in the U.S. market, and not only those in offshore wind.
Still, as the shift in the U.S. offshore wind policy remains, construction of one of the world’s largest offshore wind farms, the 2.6 GW Coastal Virginia Offshore Wind (CVOW) project, resumes. The project is being built by Dominion Energy 43 kilometres off the coast of Virginia Beach, where the developer earlier installed a two-turbine pilot project to inform the construction of the large-scale offshore wind farm.
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All of this, and more, will be discussed at Offshore Energy Exhibition & Conference (OEEC), coming up on November 25 & 26, 2025, in Amsterdam. Explore participation options and check out other event details on OEEC.biz.
