‘Mobilising EUR 1 Trillion in Investments’ | North Sea Countries, Industry, TSOs to Ink Offshore Wind Pact

Government officials from Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the UK are set to sign a declaration confirming the ambition to build 300 GW of offshore wind in the North Seas by 2050, and an investment pact with the offshore wind industry and transmission system operators (TSOs) that is said to mobilise EUR 1 trillion in economic activity.

Under the Offshore Wind Investment Pact for the North Seas, to be signed today (26 January) at the North Sea Summit in Hamburg, governments of the nine North Sea countries will commit to building 15 GW of offshore wind per year from 2031 to 2040.

The heads of state and energy ministers will also vow to de-risk offshore wind investments through a commitment to provide two-sided Contracts for Difference (CfDs) as the standard for offshore wind auction design. The pact also commits governments to remove any regulatory obstacles to power purchase agreements (PPAs), according to WindEurope, which will sign the pact on behalf of the industry.

On the industry’s side, the commitment is to drive down the costs of offshore wind by 30 per cent towards 2040, mobilise EUR 1 trillion of economic activity for Europe, create 91,000 additional jobs and invest EUR 9.5 billion in manufacturing, port infrastructure and vessels.

The cost reduction of offshore wind is planned to be achieved through scale effects, lower costs of capital and further industrialisation supported by clarity and visibility on the project pipeline.

The transmission system operators (TSOs) will identify cost-effective cooperation projects in the North Sea, including 20 GW of promising cross-border projects by 2027 for deployment in the 2030s.

The projects to be identified by the TSOs include hybrid projects combining electricity production and interconnection, as well as projects in one country connected to another country. The TSOs will also develop cost-sharing principles for these cooperation projects.

According to WindEurope, the Offshore Wind Investment Pact for the North Seas is underpinned by a Heads of State Declaration, an Energy Minister Declaration and an Industry Declaration signed by more than 100 offshore wind companies across the value chain.

Last week, Reuters reported that the declaration between the nine countries will contain a pledge to meet up to 100 GW of the 300 GW targeted for 2050 through joint cross-border projects.

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