Our Floating Solar in Europe conference is now just a few days away (March 13-14, 2025). As we get ready to host the conference in Amsterdam, we spoke to Corine Franken, Founding Partner – Tidal, Ninepointfive regarding her perspective on the financing environment in the floating solar space in Europe. In this interaction, she shares the key benefits and issues of floating solar projects as well as policy and regulatory considerations for these projects.

What, in your opinion, are the key benefits of floating solar projects?

My expertise is in offshore floating PV. I will provide my insights on Offshore Floating PV (OFPV). OFPV potentially has an important role in the energy transition as demand is growing while suitable land remains insufficient. OFPV is a welcome renewable addition to the energy mix with high scaling potential.

  • Location: With 10% of the world population living in coastal areas and 40% within 100 km of the coast, land scarcity and land-use conflicts is becoming an increasing issue with growing demand for renewable energy. OFPV has high scaling potential as it avoids land use and can be located close to urban centers and ports. It will reduce transmission losses and enhance grid stability. Furthermore, OFPV provides a solution in coastal areas with low wind resources or areas where offshore wind is not feasible due to geographic conditions.
  • Hybrid: OFPV is complementary to offshore wind as it can increase generated capacity by ~13% and utilize the CAPEX-intensive offshore infrastructure (cables, substations, etc.), increasing the NPV of wind parks by +10% in 2030.
  • Economic factors: Onshore solar and wind are the most cost-competitive at an LCOE of 3-6 ct/kWh and 4 ct/kWh, compared to the current tariff for offshore wind at 8 ct/kWh. Compared to other new alternative offshore technologies, such as wave energy (LCOE of 16-18 ct/kWh in 2030) and tidal energy (12-13 ct/kWh), OFPV is the most competitive, with projected LCOE rates of 7-12 ct/kWh in 2030. It will be competitive with offshore wind in APAC/Australia (8 ct/kWh in 2030) but not yet with EU offshore wind (6 ct/kWh). OFPV is expected to become competitive in substantial markets, with LCOEs below 10 ct per kWh, and from 2025 onwards in select cases.

What are the key issues in this segment? How should we address these challenges?

  • Cost reduction: The viability of the business model depends heavily on the ability of OFPV to bring down costs.
  • Technology risk: Technology risk is still high as several ventures are still testing technology in offshore conditions.
  • Funding risk: Scaling business models requires a lot of funding due to the CAPEX-intensive nature of the sector.

What role could policy and regulation play in accelerating floating solar development in your region?

  • Policy and Regulatory Framework: An enabling regulatory framework and policies are key to developing this nascent sector. In the Netherlands, the regulatory framework currently allows the development of OFPV within offshore wind farms and has simplified the tender framework. For example, site and resource assessments, as well as initial environmental impact assessments, are conducted and funded by the government. Furthermore, the costs for offshore transmission are socialized to accelerate site development. Other countries lag behind the Netherlands, but developments are expected to take off soon. For example, Italy and Japan currently lack specific targets, funding, or support mechanisms for this sector.
  • Subsidizing new technologies: All (renewable) technologies have benefited from subsidization schemes and higher tariffs in order to scale and drive down costs with scale. For example, prices decreased from 38.1 ct/kWh for PV in 2010 to 5.7 ct/kWh (85%) in 2022. For the sector to scale, government support is critical. Depending on the region, subsidies and government support can be structured as CAPEX subsidies, Feed-in Tariffs, or CfD (Contracts for Difference).
  • Governments in Malta, Greece, and the UK have demonstrated support for such technologies by offering 16 ct/kWh and 18 ct/kWh, respectively, as 20-year PPA prices for OFPV, while the UK offers 23 ct/kWh for tidal technologies. The European Innovation Fund provides grants for new offshore renewable technologies, and in the Netherlands, 50 MWp of offshore solar is being integrated into the IJmuiden Ver tender.

How has working on floating solar projects impacted your perspective on sustainability?

It is great to be pioneering a new asset class. This requires the ability to deal with uncertainties and a lack of clarity on adaptation timelines, as well as macroeconomic trends. The world today in 2025 is different from two years ago. Investment in OFPV also depends on the offshore wind business case as a hybrid solution. Since the offshore wind business case is under pressure, this is affecting market adaptation in Europe for OFPV. It is interesting to follow the dynamics of this nascent industry.

Could you give us a sneak peek into the topics you’ll cover at the Floating Solar Europe Conference?

Powering the future by scaling offshore energy for the decades ahead. Offshore renewables will play an increasing role in our energy mix, with offshore renewable energy expected to grow 14-fold by 2050, adding +2.5 GW per year, driven by offshore wind. Offshore will play an important role in scaling up our renewable energy mix given growing demand and land scarcity. This will foster the industrialization of offshore solar, energy hubs, and green hydrogen production. Cooperation is key—industry players, policymakers, and financiers need to work together to develop this new asset class.

For more details on the Floating Solar in Europe conference, click here