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November 8, 2024

The North Sea Energy Cooperation strengthens the European wind industry against Asian competition

The North Sea Energy Cooperation agreement, which promotes the development of the offshore electricity grid and renewable energy potential in the region, aims to consolidate a strong European wind industry. “We want to maintain a true industry in Europe,” emphasizes Jérémy Simon, Deputy General Delegate at the Renewable Energy Union, in the face of competitive pressure from Asia.
By Lucia Colaluce

By Lucia Colaluce

November 8, 2024
La Cooperación Energética del Mar del Norte

The North Sea Energy Cooperation (NSEC) represents a key initiative to strengthen the wind sector in Europe, especially at a time when competition from Asian players, particularly from China, threatens to capture a significant portion of the market.

Jérémy Simon, Deputy General Delegate at Syndicat Des Energies Renouvelables (SER), explains to Energía Estratégica España: “We want to maintain a true industry in Europe.” In other words, an industry that has managed, so far, to locally produce 96% of the components used in the European wind market.

The NSEC, which includes countries such as Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden, and the European Commission, aims to harness the region’s potential for renewable energy production and develop an interconnected offshore electricity grid. This regional cooperation is a long-standing energy priority for the European Union, aligning with the European Green Deal and the REPowerEU Plan, which highlight the importance of renewable energy to meet the EU’s climate and energy goals for 2030 and 2050.

Jérémy Simon, delegado general adjunto en el Sindicato de Energías Renovables (SER).

Jérémy Simon, Deputy General in Syndicat Des Energies Renouvelables (SER)

Simon emphasizes the importance of the agreement, not only from an industrial perspective but also as a strategy to protect jobs and ensure the continuity of European manufacturing. “Behind the companies, there are workers and jobs,” Simon explains, stressing that the agreement with the North Sea countries aims to preserve both the local workforce and the technical expertise of the region.

The NSEC has a governance structure that involves ministerial meetings, technical groups, and a work agenda set through 2027. Through five support groups, the cooperation addresses multiple strategic aspects, including long-term planning, financing of joint projects, and the integration of renewable energies such as offshore hydrogen into the energy system.

“The challenge for the European wind sector is to remain European after a few years,” warns Simon, who points out that this detailed planning is crucial for achieving the region’s industrial and energy self-sufficiency in the coming decades.

This agreement, which includes technical cooperation and coordination of tenders for offshore projects, promotes the deployment of 260 GW of offshore wind energy by 2050—the equivalent of 85% of the EU’s ambition for that date. NSEC members, along with the European Commission, also seek to expedite permit procedures and facilitate access to funding through mechanisms such as “Connecting Europe” and Power Purchase Agreements (PPAs).

The entry of external actors, such as Asian companies, represents a threat to both the European industry and the ability of countries in the region to maintain control over their supply chains. “Asian players, particularly the Chinese, are very aggressive and want to enter our market and take a share of it,” Simon points out. This situation makes coordination among NSEC countries essential to preserving and consolidating a resilient and competitive local industry.

Moreover, maritime spatial planning is another relevant aspect on the NSEC agenda, as it is necessary to balance the development of renewable energy with the protection of the environment and biodiversity in the North Sea. The support groups within the NSEC are working on an Action Plan to address these challenges, in collaboration with entities such as the Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR) and the International Council for the Exploration of the Sea (ICES).

The consolidation of an offshore electricity grid is also a priority for the NSEC, as it will not only enable more efficient use of the energy generated but also allow for closer integration between the networks of member countries. This approach, according to Simon, is part of the strategy to ensure that the European wind industry remains robust and focused on local innovation, contributing to the sustainability of the continent and avoiding increasing reliance on foreign imports.

In summary, the North Sea Energy Cooperation is a decisive effort to strengthen the European wind sector and ensure that it remains a European industry in the future. “We want to maintain a true industry in Europe,” Simon emphasizes, reiterating the need for a strategic response to the advance of global players in the market.

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