Tuesday

19th Mar 2024

Opinion

Why is offshore wind the 'Cinderella' of EU climate policy?

  • Wind power will be the principal delivering technology of the Green Deal in the European Commission's strategic long-term vision for climate-neutral economy (Photo: Kim Hansen)

Last year, 2020, saw seismic energy policy shifts across the industry. The global gas-market remains bearish and extraordinarily oversupplied, with gas prices seeing increasing downward pressure and volatility. Whereas, in the face of global turmoil, the offshore wind power industry continues to thrive.

The unprecedented year of new offshore wind farm installations resulted in a total of over 35 GW capacity operating across the globe by the end of 2020.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

From the long-term perspective, the Ocean Renewable Energy Action Coalition (OREAC) has set a goal of 1,400 GW by 2050, which means an accelerated pace of global roll-out of offshore wind generation projects.

On 14 July, the European Commission unveiled its long-awaited 'Fit for 55' package, seeking to overhaul EU regulation that lines up with the bloc's target of reducing greenhouse gas emissions by 55 percent by 2030. This involves a new 2030 renewable energy goal. According to the latest European Commission's impact assessment it ought to be at least 38-40 percent, in place of the current 32 percent renewables target.

That means that the EU requires 433-452 GW of wind energy capacity by 2030 - a threefold increase on the 179 GW installed today.

Wind power will be the principal delivering technology of the Green Deal in the European Commission's strategic long-term vision for climate-neutral economy.

Hitting the bloc's decarbonisation goal will require a 25-fold increase in offshore wind capacity. And an even bigger build-up in the number of new onshore wind capacity.

Industry can deliver the volumes pending a robust EU industrial renewables policy that guarantees that such a grand huge wind power expansion is made in Europe and that the industry is cost-competitive both within and outside the EU.

Technology is not the main barrier to the deployment of wind energy needed for the Green Deal however.

The European energy market is quite complex, serving millions of households and business round the clock. Presently, there are no market mechanisms for offshore grid development projects to be bankable. Countries have diverse capital programmes and market operation rules which hinder investment flows in offshore hybrid projects from being discharged.

The vagueness on future market design and revenues for offshore wind farms prevents the process of an integrated offshore grid deployment.

Grid gridlock?

Today, Europe invests about €40bn a year on grids, which is not enough. In order to expand and optimise Europe grid infrastructure. annual investments in grid infrastructure shall go up to €66-80bn per year over the next 30 years.

Efforts will be needed at offering clarity via regulatory changes to the EU Electricity Regulation, particularly it shall be better addressed how offshore wind projects will be dealt with when it comes to congestion income distribution and cross-border capacity allocation.

The benefits of an accelerated development will be substantial. The EU wind energy sector generates €37bn to EU GDP, operates 248 factories across the EU, and each new wind turbine installed in Europe would contribute €10m of economic activity.

Offshore wind energy is one of the most promising and cost-competitive source of power generation in Europe.

But present policies will not deliver these numbers – neither on volumes, nor on economic benefits. Higher goals are necessary but not sufficient.

Europe requires stronger delivery, monitoring, and enforcement mechanisms to make sure that 2030 is a stepping stone towards a climate-neutral energy system.

Author bio

Elina Morhunova is a European and international business lawyer, and PhD researcher in international energy policy, and a former assistant to Lithuanian Renew Europe MEP Petras Austreivicius.

Disclaimer

The views expressed in this opinion piece are the author's, not those of EUobserver.

EU unveils €800bn offshore renewables plan

The European Commission aims to increase the bloc's wind energy production at sea massively, reaching at least 300 GW by 2050 - a 25-fold increase from the bloc's current offshore wind capacity of 12 GW

Column

How to make 'Fit for 55' fit for citizens

The first battle of the 'Fit for 55' package has to be fought on the home front. Europe will also have to win the battle for the hearts and minds of citizens, mindful of the 'yellow vests'-style protests.

Analysis

'Fit for 55': what is it, and why now?

The European Commission will unveil its 'Fit for 55' package of revised climate and energy laws this week. We take a look at what is expected to be in it - and why it matters.

Industry lobbied against quick climate action in 'Fit-for 55'

A new report reveals how key industry groups in Europe have been actively lobbying against some of the upcoming proposals under the 'Fit for 55' package, to weaken climate regulation - despite their public support for net-zero emissions by 2050.

Magazine

German wind energy stumbles

A case study: red tape, "Not In My Back Yard" (NIMBYs), and Green vs Green conflicts are putting brake on Germany's rapid wind expansion.

Latest News

  1. Borrell: 'Israel provoking famine', urges more aid access
  2. Europol: Israel-Gaza galvanising Jihadist recruitment in Europe
  3. EU to agree Israeli-settler blacklist, Borrell says
  4. EU ministers keen to use Russian profits for Ukraine ammo
  5. Call to change EIB defence spending rules hits scepticism
  6. Potential legal avenues to prosecute Navalny's killers
  7. EU summit, Gaza, Ukraine, reforms in focus this WEEK
  8. The present and future dystopia of political micro-targeting ads

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us