The EU’s Wind Energy Action Plan – a blueprint for a sustainable tomorrow

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Carlos Martin Rivals

In our pursuit of a greener future, the European Union has set ambitious goals, aiming for at least 42.5% of renewable energy generation by 2030. Reaching this target will involve, to a large extent, increasing our wind energy capacity, which stood at 204 GW in 2022 but would need to grow over 500 GW by 2030. Both onshore and offshore wind are expected to play a crucial role in our global efforts to achieve net-zero emissions by 2050.

However, the EU recognizes that merely doubling the pace of wind energy deployment won’t suffice. It requires a robust, sustainable, and competitive wind supply chain. This realization forms the foundation of the EU’s Action Plan for Wind Energy.

The primary objective of this action plan is to empower European wind energy sector companies and enhance their competitiveness. This is pivotal for the EU’s role in the green transition. The plan consists of six key pillars, encompassing 15 different actions, aimed at both onshore and offshore wind.

One of the most important pillars for the successful deployment of offshore wind is Pillar 2, ”Improved Auction Design”, through which the EU intends to set the stage for fair, transparent, and efficient auctions. The proposal encourages Member States to incorporate objective, non-discriminatory criteria as a means of maximizing project execution rates. And one of the most relevant measures contemplated in this part of the package is price indexation to help the industry cope with cost increases in the face of inflationary pressure and therefore ensure a full and timely execution of projects through appropriate and economically sustainable incentives. This comes as a timely response to the recent disappointing auction outcomes for offshore wind industry, such as the Round 5 of the UK’s CfD auction in September. But here’s the catch: issuing recommendations and guidelines might not be enough. While the EU has expressed its intention to “ensure a more uniform auction design by making these provisions legally binding via an Implementing Act in the Net-Zero Industry Act” in the long run, the real test lies in whether Member States will endorse and effectively implement this package in the short to medium-term.

The wind energy industry, especially offshore wind developers like BlueFloat Energy, looks forward to seeing the practical implications of this initiative. A legally binding regulatory framework at the EU level, which would tangible actions at the Member State level is essential to ensuring that the promised transformation takes place.

Last but not least, despite addressing the importance of securing a resilient critical infrastructure for the deployment of offshore wind, at BlueFloat Energy we firmly believe that ports deserve a chapter of their own in this Action Plan. Port infrastructure is particularly critical for floating offshore wind projects bearing in mind the role that ports play in the fabrication, assembly and turbine installations phases of the floating wind projects. Indeed, unless properly addressed early on in the planning process and incorporated in the national policy making, ports could become a major bottleneck for the delivery of floating wind projects. In light of the above and considering that a substantial amount of investment is required for the development of port infrastructure, BlueFloat Energy calls for a distinct focus on ports and a strategic approach from the relevant national authorities.

The EU’s Action Plan for Wind Energy is not just a vision; it’s a blueprint for a sustainable tomorrow. While promising, the true measure of its success will depend on the journey from intentions to legal commitments, carried out at both a supranational and national level.

Read the EU Commission’s press release here.

Read all actions in the original text of the Wind Power Package.

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