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Quinton Bouwer

Offshore and Onshore wind market update

5 mins

Market Updates: Offshore vs Onshore windBoth offshore and onshore wind markets are growing r...

By Quinton Bouwer

Head of Renewables

Market Updates: Offshore vs Onshore wind

Both offshore and onshore wind markets are growing rapidly in the UK and across Europe with an increase demand from organisations and governments to generate cleaner energy. In this market update, we highlight the operational capacity, policy developments, market size (and growth opportunities), and the challenges facing not only offshore wind in Europe but UK offshore wind farms and UK onshore wind farms. We'll start with Onshore wind in UK and Europe.


UK Onshore Wind Market

The onshore wind market in the UK and Europe is positioned for robust growth in 2025, driven by increased policy support, technological advancements, and general growing interest in renewable energy.


Pipeline Growth

The UK's onshore wind project pipeline expanded significantly by 4.2 GW between 2023 to 2024, reaching 42.7 GW in total capacity, including operational, under construction, and planned projects. This 4.2 GW capacity is sufficient to power an additional three million homes annually as published by RenewableUK.


Operational Capacity

As of 2024, the UK had 15.5 GW of operational onshore wind capacity, powering approximately 10.9 million homes. This includes major projects such as the 443 MW Viking wind farm in Shetland. Adding an additional three million homes, means that  almost a third of UK dwellings could be powered by UK onshore wind in the foreseeable future.


Policy Developments

The lifting of restrictions on onshore wind development in England has reinvigorated the industry. Additionally, Scotland's Onshore Wind Sector Deal aims for 20 GW of capacity by 2030, with streamlined consenting and delivery processes.


European Onshore Wind market

Market Size and Growth

Onshore wind energy developers in the European Union generated roughly €29bn in revenue in 2023 and could add €104.2bn to the EU GDP by 2030 with the key markets being Germany, France, Spain, and emerging players like Greece and Portugal.


Policy and Investment

Strong regulatory support and EU targets for renewable energy, combined with investments in turbine technology, are driving expansion. Countries like Denmark and Sweden continue to lead with innovative projects, while newer markets are attracting developers due to favourable incentives.


Technology and Costs

Advances in turbine efficiency and economies of scale have reduced costs, making onshore wind more competitive with other energy sources. Hybrid power solutions, combining wind with storage or solar, are also gaining traction.




Europe Offshore Wind Market

Europe as a whole is experiencing rapid growth in offshore wind, with countries including Germany, Denmark, the Netherlands, and France making significant strides towards renewable energy goals.


Installed Capacity

By 2025, Europe’s offshore wind capacity is expected to surpass 30 GW, with targets set to exceed 60 GW by 2030. This growth is expected to continue as more countries ramp up their investments in offshore wind as part of their transition to net -zero economies.


Key Markets

  • Germany: The largest offshore wind market in Europe, Germany is expected to expand its capacity significantly, aiming for 30 GW by 2030.
  • Denmark: Has ambitious plans to expand offshore wind and become a net exporter of renewable energy.
  • France:  Started to build momentum in its offshore wind industry, with large tenders expected in the coming years. It aims to have 12 GW of offshore wind by 2030.
  • Netherlands: The Dutch government continues to prioritise offshore wind as a cornerstone of its clean energy transition, with several large projects under development.
  • Poland and Norway: Emerging players in offshore wind, both countries are investing heavily in developing their offshore wind potential, including floating wind technology.


Floating Wind Farms

As in the UK, floating wind farms are a major focus in Europe, especially in countries with deep waters like Norway, France, and Portugal. Floating wind technology is expected to play a pivotal role in unlocking new areas for development.


Market Drivers and Challenges

  • Policy Support: Both the UK and European Union continue to back offshore wind through various incentives, regulations, and subsidies, including the European Green Deal, which targets a carbon-neutral economy by 2050. The UK’s Energy Security Strategy also highlights offshore wind as a critical element in energy security.
  • Technology and Innovation: Advancements in turbine size and efficiency, as well as the development of floating wind technologies, will continue to drive cost reductions and open up new areas for offshore wind farms.
  • Supply Chain and Infrastructure: The offshore wind supply chain, including turbine manufacturing, installation vessels, and port facilities, is expanding rapidly, but challenges such as the availability of skilled labor, materials, and financing for large-scale projects remain.
  • Environmental Concerns: As the industry grows, there are increasing concerns about the environmental impact of offshore wind farms, particularly concerning marine life and navigation routes. These concerns may lead to stricter regulations, which could impact project timelines and costs.


In 2025, the UK and European offshore wind markets are expected to continue their rapid expansion, with numerous large-scale projects in progress. Government policies, technological advancements, and increasing investment in infrastructure will play key roles in driving this growth. However, the market will face challenges related to supply chain constraints, environmental considerations, and the need for further innovation to make offshore wind more competitive and scalable. The transition to a cleaner energy mix, including offshore wind, is expected to be a central focus in both regions as they aim for net-zero emissions by mid-century.

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