The new roadmap for offshore wind in Europe was released this week with a clear message: the sector is ready and able to cut its costs by 30% by 2040, but it needs strong political backing.

The plan, led by WindEurope alongside developers and manufacturers, seeks to revitalise a strategic industry for the energy transition and supply security.

The document proposes auctioning at least 100 GW via Contracts for Difference (CfDs) over the next decade, with 10 GW awarded each year between 2031 and 2040.

It also calls for cross-border planning and process standardisation to unlock investment, reduce the levelised cost of energy (LCOE), and create industrial jobs in coastal regions.

In return, the private sector pledges to mobilise capital for projects and infrastructure, optimise the supply chain, and deliver technical and financial improvements that could drive LCOE below €60/MWh, including for floating technologies. The ultimate goal: maintain an annual offshore installation rate of 15 GW by the end of this decade.

Iberia: A Region in the Spotlight, but on Divergent Paths

With deep waters and over 3,000 km of coastline, the Iberian Peninsula has a central role to play in this new agreement. According to sector estimates, Spain and Portugal could jointly contribute over 30 GW to Europe’s 2040 targets, provided regulatory barriers are removed and auctions proceed as planned.

Initially, Portugal appeared to take the lead, announcing plans to auction up to 10 GW of floating offshore wind capacity by 2030. However, a recent government shift scaled this back to just 2 GW.

The current focus lies in the areas of Viana do Castelo, Leixões, Figueira da Foz and Sines, which together represent an estimated potential of around 10 GW.

Yet, the collapse of Portugal’s government has cast uncertainty over the continuity of its offshore strategy and the true momentum that will be given to the sector.

The country already operates the pioneering WindFloat Atlantic (25 MW since 2020) and has advanced projects including Atlântico (3 GW), Nortada (600 MW) and the HibERNATO pilot (10 MW). All are based on floating technology suited to Portugal’s deep coastal waters — their viability now largely depends on the clarity of the next political cycle.

Spain, by contrast, remains on hold. Despite over 60 projects currently under review by the Ministry for the Ecological Transition (MITECO), the country has yet to launch its first offshore wind auction.

Delays are attributed to the lack of a defined economic framework, pending environmental assessments, and the absence of an integrated grid plan for offshore deployment.

Developers such as IREC, UNIVERGY, QAIR Energy, Capital Energy, Magtel, Elawan, Iberdrola, BlueFloat, Repsol and Greenalia have submitted proposals totalling more than 26 GW in areas like Galicia, Catalonia, the Balearic Islands, Andalusia and the Canary Islands.

However, all developments remain stuck in early stages, awaiting the Spanish Government’s definition of technical, financial and territorial conditions.

2025 Prices: Market Signals for a Floating Future

WindEurope’s new deal is also underpinned by clear market signals from floating wind technology — essential for countries like Portugal and Spain.

In February 2025, France awarded its first commercial floating wind auction: a 270 MW project off southern Brittany was granted to a consortium led by TotalEnergies and Qair at €86/MWh. This marked the first commercial-scale reference price for floating offshore in Europe.

In Portugal, LCOE estimates for floating projects currently range from €85 to €115/MWh, while in Spain, prequalified projects are estimated to need at least €90/MWh to remain viable, according to sources consulted by Strategic Energy Europe.

Meeting WindEurope’s cost targets would require significant optimisation across technical, financial and regulatory dimensions.

Is Spain Ready to Act?

WindEurope’s agreement lands at a critical moment for the region. Major European countries are already defining prices and rules of the game.

Spain — with one of Southern Europe’s highest offshore wind potentials — now has both the opportunity and the pressure to get on board.

Will this be the push the Spanish Government needs to finally launch its first offshore wind auction? The industry has set its roadmap. Now, it’s politics’ turn to deliver.