Axios Pro Exclusive Content

Even in Europe, offshore wind is facing headwinds

headshot
Sep 11, 2023
Illustration of wind turbines in a field with red dollar signs on the ground as shadows.

Illustration: Lazaro Gamio/Axios

An auction for new renewables projects in the U.K. drew no bids for offshore wind farms, per results published last week.

Why it matters: The lack of interest further underscores just how ugly things have gotten for the offshore wind sector.

What's happening: Offshore wind developers said the potential U.K. projects were unviable due to inflation, ongoing supply chain problems, and continued mechanical issues with turbines.

Of note: The British government added £22 million to the incentives it was offering, bringing the total potential subsidies to £227 million. But that wasn't enough to entice bids from developers, per Reuters.

Meanwhile, on the European continent, wind developers in Germany say that long delays for road-transport permits are preventing them from hauling needed parts to new wind farms, further delaying projects and driving up costs there.

Go deeper