The future of offshore wind power in Europe has never looked brighter after Energy Ministers from nine North Sea countries signed a historic agreement of cooperation to support the sector.
At an Energy Council meeting in Luxembourg, Ministers of Germany, Netherlands, Luxembourg, Norway, Sweden, France, Denmark, Ireland and Belgium joined to sign a Memorandum of Understanding (MoU) aimed at cutting costs associated with deploying more offshore wind energy.
On the same day, 11 of Europe’s biggest wind energy companies released an open declaration stating offshore wind could reduce costs to €80/MWh by 2025 – the same cost as new conventional forms of energy.
Recognising the “indispensable” value of wind energy in the fight against irreparable climate damage and European energy security, the MOU seeks to enhance regional cooperation between North Sea nations, streamline construction regulations, build bridges between government and private investment and modernise electric grids.
“The agreement signed in Luxembourg today is a major step forward to fully realise the potential of offshore wind in Europe,” said Giles Dickson, CEO of WindEurope.
“It’s a good combination of top-down and bottom-up: top-down political commitment to take bottom-up practical action to reduce costs and facilitate the deployment of offshore wind. We congratulate the Ministers for the ambition they’ve shown and the Dutch Presidency for having made this happen. It’s a clear statement of intent that gives confidence to the offshore wind industry and will help drive further investments.”
In their declaration, Europe’s big wind developers said they welcomed the MOU but cautioned policymakers becoming complacent about the future of the industry. The €80/MWh price, they warned, would only be achieved through economy of scale and a strong pipeline of projects coming online in the North Sea in coming years.
“Following a record year for installations in 2015, a serious question mark remains over the post-2020 environment for offshore wind. Policymakers at European and national level must set out clear visions for the industry after 2020 with robust laws that give investors peace of mind and visibility well into the future,” the statement reads.
“With the right build out and regulatory framework the industry is confident that it can achieve cost levels below €80/MWh for projects reaching final investment decision in 2025, including the costs of connecting to the grid.”
