The energy ministers of the nine North Sea countries held their annual meeting in Odense, Denmark on 24 October 2024. They reaffirmed their ambition to transform the North Sea into the ‘Green Powerhouse of Europe’ and gave clear recommendations to the new European Commission to this end. Key points include the need to further strengthen the wind supply chain in Europe and to get hybrid offshore wind farms up and running – by defining a cost-sharing formula as soon as possible and creating a new dedicated offshore financing facility. They also stressed the importance of fully involving the UK in all this. WindEurope’s press release on the joint NSEC statement summarises the recommendations. (Photo: WindEurope)
"This is a huge operation, the North Sea is seen as the 'Green Powerhouse' of Europe. On behalf of NedZero I have identified the geopolitical and economic challenges, shared my vision on hydrogen integration and advocated for our 'North Seas Standard', with strict standards in the field of human rights and the environment."
Joint Statement
At the North Seas Energy Cooperation (NSEC) ministerial meeting in Odense, Denmark, European and national politicians and industry representatives confirmed the strategic role of the North Sea as Europe's 'Green Powerhouse'.
In a joint NSEC statement, the Energy Ministers of Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands and Norway today identified six key areas of cooperation. Among them: the competitiveness of the European offshore wind supply chain and the need to reinvent offshore wind financing.
Good news for the offshore wind supply chain
Europe needs to rethink its approach to offshore wind planning. With the large offshore wind volumes that will be installed in the North Sea in the coming years, national supply chain planning will not be sufficient. Investments in new and expanded plants require international cooperation and coordination at sea basin level.
A strong European supply chain is a prerequisite for the further development of offshore wind. It is good that the EU is now supporting this - with stricter prequalification criteria in the areas of cybersecurity, responsible entrepreneurship and the ability to implement projects that are enshrined in law.
Overview needed for the entire value chain
The NSEC recommendations call for a “ digital transparency tool ” that provides visibility across the wind energy value chain. The tool would serve as an overview of auction schedules, production capacities, equipment requirements and port capacities across the North Sea countries. Ultimately, it is intended to cover the whole of Europe, including the UK and Norway. Overall, the NSEC recommendations call for “more effective and constructive cooperation between the UK and NSEC.”
Bottlenecks in the supply chain remain, particularly with regard to the availability of offshore wind installation and service vessels, port infrastructure, the expansion and reinforcement of onshore grid connections and the availability of skilled workers. But the European offshore wind supply chain is accelerating. By the end of 2025, Europe will be able to produce 9.5 GW of offshore wind turbines per year.
European companies are investing at least €10 billion to build new factories and expand existing ones – for everything from wind turbines to foundations, cables and grid equipment. Europe must continue to facilitate access to capital, enable a level playing field with non-European competitors, stimulate grid expansion – and the European supply chain will deliver.
New financing approach needed for hybrid offshore wind farms
With the European Wind Energy Package and the EU Grid Action Plan, the European Commission has taken a series of important steps to support investment in the wind industry and the supporting infrastructure. The European Investment Bank (EIB) has stepped up support for the European wind industry with crucial counter-guarantees . But additional steps are needed at regional level to facilitate investment – not least in hybrid offshore wind farms that connect two or more countries, energy islands and meshed grids.
The NSEC recommendations call for a new approach to offshore financing. Preparatory discussions on the establishment of an “ offshore regional facility ” to mobilise financing at sea basin level have started. The facility could support the financing of meshed grid infrastructure and hybrid offshore projects and help to resolve persistent questions on cost, risk and benefit sharing between the actors involved. Europe should adopt the regulatory framework and define a cost sharing formula for hybrid offshore wind projects as soon as possible. Hybrid projects are the future of offshore wind in the North Sea and the focus now must be on building the first projects.
The facility would be based on voluntary cooperation between the European Commission, Member States, private investors and, potentially, non-EU countries that could support offshore projects.
