North Seas Countries Sign Offshore Wind Investment Pact, Target 15 GW Annual Buildout from 2031

Seven Heads of State and Government and Energy Ministers from nine North Seas countries met in Hamburg on Tuesday to accelerate the expansion of offshore wind capacity across Europe. Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and the United Kingdom reaffirmed their ambition to collectively deploy 300 GW of offshore wind capacity in the North Seas by 2050.

The meeting culminated in the signing of the “Offshore Wind Investment Pact for the North Seas,” a joint agreement between governments, the offshore wind industry and transmission system operators (TSOs) aimed at scaling deployment and restoring investor confidence in the sector.

Investment Pact Unites Governments, Industry and Grid Operators

The Investment Pact is supported 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. Together, the declarations outline coordinated commitments to address policy, cost and infrastructure challenges facing Europe’s offshore wind market.

Under the pact, governments committed to contributing to a coordinated deployment of 15 GW of offshore wind capacity per year across the North Seas during the 2031–2040 period.

Policy Commitments to De-Risk Offshore Wind Investments

As part of the agreement, governments pledged to provide greater planning certainty and reduce investment risks for offshore wind projects. A key measure is the commitment to adopt two-sided Contracts for Difference (CfDs) as the standard auction design for offshore wind. These contracts are intended to lower financing costs by offering long-term revenue visibility.

Governments have also committed to removing regulatory obstacles to Power Purchase Agreements (PPAs), enabling direct electricity supply contracts between offshore wind producers and corporate end-consumers.

The coordinated buildout under the pact is intended to provide the visibility needed for investment in manufacturing capacity, port infrastructure and offshore installation vessels.

Industry Pledges Cost Reductions and Economic Impact

In return, Europe’s offshore wind industry committed to reducing the cost of offshore wind by 30 percent by 2040 compared to 2025 levels. According to the industry, these reductions will be driven by scale effects, lower costs of capital and further industrialisation enabled by clearer project pipelines.

The industry also pledged to mobilise €1 trillion in economic activity, create 91,000 additional jobs and invest €9.5 billion across the offshore wind value chain, including manufacturing facilities, ports and vessels.

TSOs Target Cross-Border Offshore Wind Projects

Transmission system operators are committed to identifying cost-effective cooperation projects across the North Seas. They aim to identify 20 GW of economically promising cross-border offshore wind projects by 2027, with deployment targeted in the 2030s.

These initiatives include hybrid offshore projects combining electricity generation and interconnection, as well as projects located in one country and connected to another. TSOs also agreed to develop cost-sharing principles for such cooperation projects.

Europe Reaffirms Offshore Wind Strategy

Europe currently has 37 GW of offshore wind capacity installed across 13 countries, representing more than 6,000 turbines. However, deployment has slowed in recent years due to sub-optimal auction design, rising capital costs and limited supply chain visibility.

Commenting on the agreement, WindEurope Chief Executive Officer Malgosia Bartosik said, “Today Europe doubles down on offshore wind. Government cooperation on offshore wind buildout can help crowd in €1trillion of investments in the next decade. This is the best possible response to those who doubt Europe. And our drive to deliver energy that is homegrown, secure and affordable.”