Government officials from Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, and the UK are set to sign a declaration aiming to build 300 GW of offshore wind in the North Seas by 2050. This includes an investment pact with the offshore wind industry and transmission system operators (TSOs) to mobilize EUR 1 trillion in economic activity.
At the North Sea Summit in Hamburg, the Offshore Wind Investment Pact for the North Seas is to be signed today (26 January). The nine North Sea countries will commit to constructing 15 GW of offshore wind annually from 2031 to 2040.
The heads of state and energy ministers will also work to de-risk investments through two-sided Contracts for Difference (CfDs) as standard for offshore wind auction design. The pact includes commitments to eliminate regulatory obstacles to power purchase agreements (PPAs), as stated by WindEurope, representing the industry.
The industry commits to reducing offshore wind costs by 30% by 2040, mobilizing EUR 1 trillion for Europe’s economy, creating 91,000 new jobs, and investing EUR 9.5 billion in manufacturing, port infrastructure, and vessels.
Cost reductions are expected via scale effects, reduced capital costs, and increased industrialization, supported by project pipeline clarity and visibility.
Transmission system operators (TSOs) will identify cost-effective projects in the North Sea, including 20 GW of cross-border projects by 2027 for the 2030s.
The TSOs will pinpoint hybrid projects that combine electricity production and interconnection, as well as projects in one country connected to another. They will also develop cost-sharing principles for these projects.
According to WindEurope, the Offshore Wind Investment Pact for the North Seas is supported by a Heads of State Declaration, an Energy Minister Declaration, and an Industry Declaration signed by over 100 offshore wind companies.
Last week, Reuters reported that the declaration includes a commitment to achieve up to 100 GW of the 300 GW target by 2050 through joint cross-border projects.
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Original Story at www.offshorewind.biz