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Significance
It is the latest reminder that meeting offshore wind targets depends heavily on appropriate policy, and auction designs, for a sector still facing cost challenges. The failed bid in Denmark came one month after Sweden cancelled plans to construct 13 offshore wind farms in the Baltic Sea, citing defence concerns.
Impacts
Europe’s wind turbine manufacturers need predictable growth in the European offshore wind market to sustain supply chain investment.
Lack of profitability in the offshore wind sector is causing recent market entrants, specifically European oil majors, to step back.
A mismatch between rising variable renewable power and lagging power demand growth may bolster demand-side energy transition sectors.
Keywords:
Europe,
EUR,
Denmark,
EU,
Sweden,
United Kingdom,
United States,
industry,
energy,
investment,
renewable energy,
defence,
government,
security
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2024
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