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74 days ago

NORTH SEA NATIONS UNITE TO POWER EUROPE'S GREEN ENERGY FUTURE

Industry News
 

Source reNews - North Sea ‘to be Europe’s green power plant’

The Energy Ministers from the nine North Seas countries have reiterated their commitment to transforming the region into “Europe’s green power plant” during the North Seas Energy Cooperation (NSEC) ministerial meeting held in Odense, Denmark.

They provided the new EU Commission with targeted recommendations to bolster this ambition, emphasizing the critical need to enhance Europe’s wind energy supply chain.

In addition, they stressed the urgency of advancing hybrid offshore wind farms by establishing a cost-sharing formula promptly and creating a dedicated offshore financing facility.

The inclusion of the UK in these initiatives was also underscored as vital.

In a collaborative declaration, the Energy Ministers of Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, and Norway outlined six crucial areas for joint efforts. These areas encompass enhancing the competitiveness of Europe’s offshore wind supply chain and reinventing offshore wind financing strategies.

Trade organization WindEurope emphasized the necessity for a fresh approach to offshore wind planning. Given the substantial volumes of offshore wind slated for installation in the North Seas in the coming years, they argue that national supply chain strategies alone will be insufficient.

Investment in new and expanded facilities will require international cooperation and coordination at the sea-basin level, WindEurope noted.

A robust European supply chain is essential for advancing offshore wind development, they added.

“It’s encouraging that the EU is now backing this with stricter pre-qualification criteria focusing on cybersecurity, responsible business practices, and project delivery capabilities enshrined in law,” stated WindEurope.

The NSEC recommendations propose a “digital transparency tool” designed to enhance visibility across the entire wind energy value chain. This tool will provide an overview of auction schedules, manufacturing capabilities, equipment requirements, and port capacities throughout the North Seas countries.

The ultimate aim is to expand this tool's coverage to all of Europe, including the UK and Norway. The NSEC recommendations also advocate for “more effective and constructive cooperation between the UK and NSEC.”

WindEurope highlighted that supply chain bottlenecks persist, particularly concerning the availability of offshore wind installation and service vessels, port infrastructure, the expansion of onshore grid connections, and the accessibility of skilled labor.

However, they noted that the European offshore wind supply chain is gearing up, projecting that by the end of 2025, Europe will be capable of manufacturing 9.5 GW of offshore wind turbines annually.

European companies are investing at least €10 billion to establish new factories and expand existing operations for a wide range of components, including wind turbines, foundations, cables, and grid equipment.

To ensure success, the continent must continue to facilitate capital access, establish a level playing field with non-European competitors, and accelerate grid development, WindEurope asserted.

With the European Wind Power Package and the EU Grids Action Plan, the European Commission has made significant strides in supporting investments in the wind industry and its infrastructure. The European Investment Bank (EIB) is stepping up its support for the wind sector with crucial counter-guarantees, according to WindEurope.

“However, additional regional measures are essential to stimulate investments—especially in hybrid offshore wind farms that connect multiple countries, energy islands, and meshed grids,” the group added.

The NSEC recommendations also propose a novel approach to offshore financing, with preliminary discussions underway regarding the establishment of an “offshore regional facility” aimed at unlocking financing at the sea-basin level.

This facility could assist in funding meshed grid infrastructure and hybrid offshore projects, addressing lingering issues related to cost, risk, and benefit sharing among involved parties.

WindEurope emphasized, “Europe must establish a regulatory framework and define a cost-sharing formula for hybrid offshore wind projects as soon as possible.”

“Hybrid projects represent the future of offshore wind in the North Seas, and the focus must now shift to bringing the first projects to fruition.”

WindEurope’s chief executive, Giles Dickson, commended the North Seas Energy Ministers for clearly identifying the steps needed to accelerate offshore wind development and for articulating what the EU should prioritize during its new five-year mandate.

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