This is an extract from a recent report “Global Offshore Wind 2025” by GWEC. This extract specifically focuses on the European offshore wind market.
Offshore wind’s journey began with Denmark’s first offshore wind turbines installed in 1991 off the island of Lolland. Since then it has evolved into a story of remarkable growth. Today, this technology delivers large-scale, cost-effective clean power around the globe – energising businesses, boosting economies and revitalising coastal regions. With 83 GW of capacity installed worldwide, offshore wind now supplies clean, affordable electricity to 73 million households. The case for offshore wind has never been stronger. In addition to providing vast amounts of clean, renewable power, it adds billions in gross value to national economies and sustains hundreds of thousands of jobs.
In Europe alone, offshore wind contributes approximately USD 3.2 billion GW installation in gross value added (GVA). Amid rising geopolitical uncertainty and shifting trade relations, offshore wind, with its unique position in the marine space, is gaining recognition as a strategic asset for nations seeking greater energy independence and resilience. By harnessing their marine resources, countries can reduce reliance on volatile fossil fuel imports, thereby stabilising energy costs and strengthening economic and energy security.
To successfully deliver the growth projected in the medium term, both industry and government must adopt a laser-focused commitment to delivery and reliability. Recent tender failures in established markets have prompted a recalibration of costs and risks. The frameworks guiding offshore wind development must evolve to reflect shifting realities. In response, mature-market governments and policymakers have started to align with industry on targeted measures, especially in auction and tender design, to stabilise and support the sector. Meanwhile, in emerging markets for offshore wind, governments and industry have the opportunity to work together on a “right first time” approach – prioritising effective risk sharing and auction reform to enable strong and sustainable growth. A total of 56.3 GW of offshore wind capacity was awarded worldwide last year and Europe led the way, with 23.2 GW awarded in Europe. Auctions remain a cornerstone for offshore wind development, with 56 GW of projects auctioned last year and more planned for this year in several countries, including the UK, Germany, Denmark, the Netherlands, France, Ireland, Norway, Poland, Portugal, Estonia, Lithuania, South Korea, the Philippines, Vietnam and Colombia.
Germany – High volumes, rising costs and a move to CfDs
Germany operates 9.1 GW of offshore wind – the largest fleet in the EU – and plans to triple its capacity by 2030. In 2024, auctions awarded 8 GW, with successful bidders committing over €4 billion in concession fees. Developers showed limited interest, partly due to high costs and negative bidding requirements. Some capacity from these projects may be connected to the grid in 2030. In 2025, a further 3.5 GW will be tendered through uncapped negative bidding. The government is determined to transition to two sided Contracts for Difference (CfDs) from 2026 or 2027, although political support remains uncertain. Spatial plans by the Federal Maritime and Hydrographic Agency (BSH) envisage up to 70 GW by 2045.
Denmark – Relaunching tenders and supporting industry growth
Denmark is resetting after two failed tenders, with plans to re-tender 3 GW across three sites in autumn 2025. This round will feature 20-year capability-based two-sided CfDs, where projects are remunerated for their potential production rather than actual output, with more flexible timelines and reduced penalties. The government is introducing new options such as overplanting and integration with Power-to-X (PtX) technologies, reflecting a more pragmatic approach to supply chain risks. Projects must meet sustainability and EU supply chain requirements, though awards will remain price-driven. Denmark is also reviewing future tenders for other sites and energy island projects, which remain on hold pending market and legal developments.
The Netherlands – Slowing down to reflect market realities
Over the past five years, the Netherlands has installed 3.8 GW of offshore wind, second only to the UK in Europe. In 2024, another 4 GW was awarded but plans are being scaled back in the short term due to low bid competition and cost concerns. The 2025 tender will cover just 1 GW (Nederwiek I-A), with two other 1 GW sites postponed. The current round maintains negative bidding and non-price criteria (NPCs) but allows delayed payments. A potential return to CfDs alongside PPAs is being considered from 2027. The government was revisiting its long-term offshore wind strategy before the coalition collapsed in June 2025.
France – Fast-tracking floating wind and expanding general capacity
France is catching up after decades of delays. Since 2012, over 5.3 GW of offshore wind capacity has been awarded through auctions, with plans to award an additional 14 GW before 2026. In 2024, three floating wind tenders (totalling 750 MW) were successfully completed, with strike prices of €85.5–€92.7/MWh ($98.4–106.6/ MWh). While this shows progress in floating wind development, the prices do not reflect the true costs of the technology and are influenced by tender design specifics. Looking ahead, France plans three more fixed-bottom auctions in 2025 (5 GW) and will award a further 9.2 GW in 2026. The government is streamlining permitting and grid connection processes while backing projects with a 20-year indexed two-sided CfD. In the long term, France is targeting 18 GW of offshore wind by 2035 and 45 GW by 2050.
Poland – Preparing for the next phase of growth
Poland is making steady progress in offshore wind. Projects from Phase I (totalling 6 GW) are advancing rapidly, with the first monopiles installed at Baltic Power and 3 GW reaching Final Investment Decision (FID) in 2025, including Baltica 2 and Baltyk II and III. A 25-year CfD remains the main support mechanism, but regulatory and permitting hurdles remain. The country plans to support an additional 12 GW of capacity between 2025 and 2033, starting with a 4 GW CfD auction in December 2025. Legislative amendments are being finalised to facilitate the auction, requiring environmental permits and at least three project applicants.
Norway – Balancing floating ambition with political uncertainty
Norway held its first bottom-fixed auction in 2024, awarding Sørlige Nordsjø II (1.5 GW) at €99.4/MWh. The focus now shifts to floating wind with the Utsira Nord tender, where developers will compete first on qualitative criteria and later for a direct grant. Three sites will be awarded in 2025, but only one project of almost 500 MW will receive up to €3 billion in government support. Political consensus on offshore wind remains fragile, especially for state funding and hybrid projects. Upcoming elections in September 2025 may reshape priorities, particularly around interconnection and project support models.
Baltics – Cautious progress amid grid and investor concerns
In Lithuania, one 700 MW project was awarded in 2023, with a second auction reopened in June 2025 offering a 15-year two-sided CfD backed by €193 million in state funding. Estonia employs a two-step model – first awarding seabed leases, then providing support through CfDs. But many auctions saw low interest or no bids. The Saare 1 floating project (900 MW) was awarded with just one bidder, and more permits are under review. The upcoming CfD auction is unlikely to be held in 2025, while the joint Estonian-Latvian ELWIND project (1 GW) is planned for 2026-27. Grid constraints and the need for long-term offtakers remain significant barriers to scaling up offshore wind in the region
United Kingdom – Cementing a leadership position for the future
Over the past two decades, the UK has commissioned 46 offshore wind farms and, since 2016, has channelled more than £50 billion (approximately $64.6 billion) into new developments at sea. To cement its position as an industry leader, the UK is launching a Global Clean Power Alliance and forging bilateral partnerships with countries such as India and Brazil. In 2024, the UK celebrated a milestone of 30 GW of installed wind capacity, enough to power over 26 million homes and cut at least 35 million tonnes of carbon each year. About half of this capacity is offshore wind, with the full commissioning of Moray West in April 2025 boosting capacity past 15 GW.
After the general election in July 2024, the new government introduced reforms designed to support up to 50 GW of offshore wind capacity by 2030. This is central to the Prime Minister’s broader “Clean Energy Mission” to source at least 95% of the nation’s electricity from low-carbon sources and build on the country’s strong decarbonisation track record in the power sector. To reinforce this manufacturing and supply-chain boost, industry and government partners including RenewableUK, the Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland launched the Offshore Wind Industrial Growth Plan in April 2024. The framework sets out to triple domestic turbine and component manufacturing across nine regional clusters, create thousands of skilled jobs, and support £25 billion of gross value added to the economy. New port infrastructure measures are to be delivered via the National Wealth Fund. In June 2025, the government announced a £300 million support package for the offshore wind supply chain. Starting with Allocation Round 7 this year, the CfD Clean Industry Bonus further seeks to strengthen domestic manufacturing and low-carbon supply chains by enabling fixed and floating offshore wind projects to receive up to £20.1 million per GW of extra CfD revenue support if they invest in more sustainable supply chains. Projects totalling 27 GW of capacity submitted proposals for the first round of this scheme. At least 13 UK offshore projects totalling 8.5 GW are eligible to bid in Allocation Round 7, with further projects likely to become eligible if forthcoming policy updates are enacted.
Deployment of new offshore wind capacity has been held back by a legacy “first-come, first-served” grid-connection queue that has swelled to around 700 GW, causing delays measured in years rather than months. In February 2025, Ofgem signalled its intent to approve NESO’s revised connection regime, which promises clearer timetables and could unlock up to £15 billion of additional offshore wind investment. In parallel, last year’s transmission licence exemption for higher-voltage array cables paves the way for a modernised offshore transmission framework tailored to the sector’s needs. To minimise ecological harm, the government published guidance for a Marine Recovery Fund in January 2025 – one strand of a broader compensation package designed to balance offshore wind development with the protection of marine biodiversity.
Access the full report here
