The offshore wind sector is on the verge of massive expansion but a fragile supply chain threatens progress.
According to Norwegian software specialists Shoreline Wind’s latest report, offshore supply chains can boost profits despite challenging times ahead.
With 140 GW of new capacity needed between 2024 and 2028, the industry must nearly triple its current growth rate to stay on track. Yet, competitive pricing pressures and rising costs are straining developers and suppliers alike.
In the UK, strike prices have plummeted from £150/MWh in 2014 to below £40/MWh in 2020, while in Germany, developers recently spent €12.6 billion for 7 GW of development rights.
These pressures have already led to project delays and failed auctions, most recently in Denmark.
Smaller supply chain firms are especially vulnerable, struggling to compete and invest in innovation. Issues like staffing shortages, port constraints and slowing capital investment—particularly from the U.S. into Europe—are making matters worse.
Shoreline Wind’s report urges governments to provide clearer policy direction and integrate non-price criteria into tenders, ensuring long-term stability.