Europe’s offshore wind sector stands at a pivotal juncture. In order to meet the commitment of installing 100 GW by 2040 and boosting competitiveness, the sector must reduce its CAPEX by at least 30%—an ambitious target requiring structural changes in technology, financing, and regulatory planning, as outlined in the agreement between manufacturers and developers announced at the WindEurope event.

The technical roadmap is already in place. “The industry has already defined its path; now governments must act with an integrated vision that includes generation, grid, and storage,” says Andrés Álvarez Rial, Head of Marine & Offshore BESS Business Development at Head Up Services.

In conversation with Strategic Energy Europe, Álvarez Rial stresses that without these elements, even the most technologically advanced wind farms face structural limitations that compromise their long-term profitability and viability.

Scaling Turbines and Projects: Reducing LCOE Through Technology and Volume

Investing in larger and more efficient turbines is one of the clearest strategies to cut CAPEX. “Investing in the development of larger turbines that can generate more power with fewer units results in a lower cost per MWh,” notes Marcos Martínez Lodeiro, Commercial Director at Norinver Montajes e Ingeniería.

In this regard, he explains that for a commercial offshore wind farm to be financially viable on its own, it must have at least 400 MW installed—or 200 MW if supported by government incentives. Economies of scale, he adds, are a determining factor.

“Just manufacturing 150 units instead of five could significantly reduce costs for floating platforms,” Martínez Lodeiro adds, emphasising that the designs are already validated—what’s missing is production volume.

He also highlights that larger projects tend to be more efficient, not only in terms of generation, but also across manufacturing, installation, and maintenance.

Regulatory Bottlenecks: The Case of Spain and Portugal

Despite having a strategic role in Europe’s offshore wind development, Spain and Portugal are facing delays due to political and regulatory barriers.

“There’s still everything left to develop, and until auctions are held, no projects will begin—not even operations and maintenance or engineering,” warns Álvarez Rial.

This reality has led to a standstill in the value chain’s advancement, putting the WindEurope targets at risk. The agreement warns that more than 20% of current projects in Europe are at risk of cancellation or delay unless environmental and market conditions are corrected.

Experts agree that it is urgent to establish a clear regulatory framework that ensures legal certainty and provides the right incentives.

“Collaborating with governments to create stable policies—such as tax incentives, subsidies, and streamlined permitting—is key,” they agree. However, they also note that the private sector has already shown strong interest in investing, and now government initiative is urgently needed.

Construction and Logistics Optimisation: Lessons From Experience

The sector has made significant progress in optimising construction processes, particularly in Europe’s large shipyards.

“At Navantia, we gained experience from our first project. Now, with our fourth wind farm, Le Tréport, we’ve optimised everything possible within the construction process,” says Martínez Lodeiro.

Improvements in materials management and project execution, especially for electrical installations, have helped to reduce timelines and costs.

Additionally, the use of more efficient installation vessels, advanced assembly techniques, and detailed logistical planning “minimises downtime,” according to Martínez Lodeiro.

However, another critical aspect is the development of adequate port infrastructure and grid networks capable of absorbing new generation capacity.

“The grid’s current capacity is limited, and we need to create an energy hub using BESS,” says Álvarez Rial.

Head Up Services stresses that investment in ports and electrical nodes must be anticipated, especially in light of regulations such as Directive 2014/94 and the OPS requirement for 2027, which will require ships to connect to onshore power.

“The 2030 rule mandates that vessels connect to the grid, and there simply isn’t enough capacity,” the executive warns.

Moreover, the lack of coastal substations is hindering both port decarbonisation and offshore wind expansion. According to Head Up Services, the strategy must focus on self-supply energy systems using BESS, especially in ports without existing grid connections.

Energy Storage: A Cornerstone for Efficiency and Profitability

“Storage must be integrated as a condition from the very first auction. It’s a larger upfront investment, but the return will be quick—no more than two years,” Álvarez Rial proposes.

According to the executive, adding storage to an offshore wind farm can increase CAPEX by between $100 million and $1 billion, depending on whether lithium-ion or flow batteries are used.

Nonetheless, this investment allows avoiding energy losses due to grid limitations and provides greater operational flexibility. “If there’s no grid capacity, the energy is lost,” Álvarez Rial affirms.

He also explains that batteries are used to manage off-peak and super off-peak hours, optimising renewable energy use when demand is lower. “Energy cannot cost more than €45 to €50 per MWh, or it wouldn’t be viable. A detailed study is needed, but the cost per MW of storage should not exceed €100,” he adds.

Meeting WindEurope’s target of 100 GW offshore wind capacity and a 30% reduction in LCOE by 2040 is technically achievable, but requires urgent decisions. While the industry has advanced in technology, construction efficiency, and storage, what’s needed now is political will, regulatory clarity, and genuine financial support.

As summarised in the sector’s proposal to the European Parliament: “We need a partnership between industry and governments that enables effective build-out at scale to deliver clean, affordable, and secure energy for Europe.”