Europe’s offshore renewable power business just isn’t large enough to ship governments’ targets to quickly develop inexperienced energy, and requires a bounce in coverage assist and funding to get on monitor, European firms from the sector mentioned on Monday.
The firms’ joint name comes as leaders from 9 international locations together with Germany, France and Britain are set to assemble in Ostend, Belgium on Monday, to pledge to greater than quadruple offshore wind capability within the North Sea by 2030.
“Our industry is not large enough today to deliver the nine governments’ commitments and meet the rising demand for renewable electricity and renewable hydrogen,” greater than 100 firms and business teams mentioned in a joint assertion, including that they’d “do everything we can” to make sure new wind farms are manufactured in Europe.
Today, European industries can manufacture seven gigawatts of offshore wind per yr, mentioned the signatories, which included power corporations Orsted , Shell and Equinor , wind turbine producer Siemens Gamesa , Britain’s National Grid , renewable hydrogen gear producer Nel , and business group Wind Europe.
Hitting international locations’ targets would require including greater than 20GW per yr in a number of years’ time, they mentioned.
Final funding choices in European offshore wind farms plunged in 2022, as builders confronted record-high inflation, hovering rates of interest, elevated seabed leasing charges and unstable power markets.
Investment has bounced again thus far this yr, however the firms mentioned additional assist shall be wanted or Europe’s renewables sector might wrestle to ship the build-out wanted to hit targets – elevating the chance of an elevated reliance on imported components.
The corporations known as for elevated authorities and EU funding to develop Europe’s manufacturing of renewable power parts, and inflation-indexed costs in authorities auctions to assist wind farms.
The firms warned the EU towards extending its cap on energy mills’ revenues, which is because of expire in June. The scheme was launched final yr to claw again money from hovering energy costs and return it to customers, however was opposed by business who mentioned it deterred traders.
(Reporting by Kate Abnett; enhancing by Diane Craft)
