€1 Trillion Investment Set in Motion
North Sea Countries, Industry and Transmission System Operators to Sign Offshore Wind Energy Agreement
Government officials from Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, and the United Kingdom are preparing to sign a declaration reaffirming the goal of producing 300 GW of offshore wind power in the North Sea by 2050. Alongside this, they will conclude an investment agreement with the offshore wind sector and transmission system operators (TSOs), expected to trigger €1 trillion in economic activity.
The North Sea Offshore Wind Investment Agreement will be signed today (26 January) at the North Sea Summit in Hamburg. Under the deal, the nine governments will commit to building 15 GW of offshore wind farms annually between 2031 and 2040.
Reducing Investment Risks
Heads of state and energy ministers will pledge to reduce risks in offshore wind investments by ensuring two-sided Contracts for Difference (CfDs) as a standard in auction design. According to WindEurope, governments will also be required to remove regulatory barriers to Power Purchase Agreements (PPAs).
Industry Commitments
On the industry side, commitments include:
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Cutting offshore wind costs by 30% by 2040,
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Generating €1 trillion in economic activity for Europe,
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Creating 91,000 additional jobs,
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Investing €9.5 billion in manufacturing, port infrastructure, and vessels.
Cost reductions are expected to come from economies of scale, lower capital costs, and greater industrialization supported by project pipeline clarity and visibility.
Transmission System Operators (TSOs)
TSOs will identify cost-effective cooperation projects in the North Sea by 2027, including 20 GW of promising cross-border projects to be commissioned in the 2030s. These will feature hybrid projects combining generation and grid connection, as well as interconnectors linking different countries. TSOs will also develop cost-sharing principles for these projects.
Broad Support Across the Sector
According to WindEurope, the agreement is backed by a Presidents’ Declaration, an Energy Ministers’ Declaration, and an Industry Declaration, signed by more than 100 offshore wind companies across the value chain.
Last week, Reuters reported that the declaration among the nine countries will include a pledge to achieve 100 GW of the 2050 target through joint cross-border projects.
