Europe
February 27, 2025

Wind energy in crisis: Grid and permit shortages halt its progress in Europe

Europe installed 16.4 GW of wind energy in 2024, but this figure falls short of the required capacity to meet energy security and decarbonisation targets. Grid bottlenecks, slow permitting, and insufficient electrification are stalling the sector’s expansion.
By Lucia Colaluce

By Lucia Colaluce

February 27, 2025
energy

Europe continues to advance its energy transition, but not at the necessary pace. According to WindEurope, the continent installed 16.4 GW of new wind capacity in 2024, of which 13 GW were in the European Union. Despite wind energy accounting for 20% of Europe’s electricity consumption, this figure is less than half of what is needed to meet the EU’s energy security and decarbonisation goals.

To achieve climate neutrality by 2050, Europe must accelerate its deployment of renewables, particularly wind energy. The EU aims to install at least 425 GW of wind capacity by 2030, yet current deployment rates indicate a severe shortfall.

Pierre Tardieu, Chief Policy Officer at WindEurope, underscores the urgency of accelerating the sector’s expansion: “If we don’t resolve permitting and grid issues, we won’t meet our climate targets or ensure a stable energy supply. Every delay in wind deployment pushes Europe further away from its energy independence objectives”.

Grid Infrastructure: The Biggest Bottleneck for Wind Energy

One of the biggest obstacles facing the wind sector is the lack of grid capacity to connect new wind farms. Currently, hundreds of gigawatts of projects are on hold, waiting for grid connection permits.

The issue lies in the fact that many of Europe’s electricity networks were designed for a centralised generation model, while the shift to renewables requires massive investments in modernisation and expansion.

WindEurope warns that without urgent changes, Europe will not reach its 2030 target of 425 GW of wind energy. Some countries have started filtering grid connection requests to prioritise more advanced projects, but this is not a sustainable solution. “We need better grid planning with forward-looking investments and to unlock private financing”, states Tardieu.

To put this into perspective, Denmark has the most advanced wind penetration in Europe, with wind covering 56% of its electricity demand. However, many countries still rely heavily on fossil fuels. If the EU fails to modernise its grids, it could jeopardise not only wind energy expansion but also industrial electrification, a key pillar of the Clean Industrial Deal.

Bureaucracy and Permits: Another Major Obstacle

In addition to infrastructure limitations, permitting remains a significant challenge. In many EU countries, the approval process for new wind farms takes between 5 and 7 years, severely slowing down the energy transition.

Germany has made remarkable progress, accelerating its onshore wind permitting process by a factor of seven in the last five years. However, many other EU nations have yet to implement the bloc’s new streamlined permitting rules, significantly hindering sector growth.

WindEurope’s CEO, Giles Dickson, warns about the consequences of these delays: “Every turbine we fail to install means higher electricity prices for businesses and households. Governments must act now. The EU has clear permitting guidelines, but national implementation remains slow and inconsistent”.

For example, Spain and France have announced new measures to speed up renewable project approvals, but some regions still struggle with lengthy environmental assessments and local opposition, further delaying new capacity additions.

Investment is Rising, But So Are the Risks

In 2024, 36.6 GW of wind capacity was awarded in government auctions, setting a new record. Additionally, 32 billion euros in new wind farm investments were finalised.

Despite these promising figures, many of these projects could face delays if permitting and grid constraints remain unresolved. WindEurope forecasts that between 2025 and 2030, Europe will install 186 GW of new wind capacity, but warns that many projects might fail to materialise due to infrastructure limitations.

Offshore wind, in particular, is at risk. While offshore projects accounted for a significant share of new installations, they face increasing supply chain constraints, rising steel and raw material costs, and port infrastructure bottlenecks.

Moreover, government-backed contracts for wind energy remain unpredictable, leading to uncertainty in financing. Some European nations, such as the UK and Germany, have revised offshore wind auction designs, but industry leaders warn that long-term regulatory stability is needed to sustain investor confidence.

The Key Role of Wind Energy in Europe’s Energy Security

With the decline of Russian gas and the recent energy crisis, wind power has become a crucial pillar of Europe’s energy security. Countries like Denmark already generate 56% of their electricity from wind, while in Germany, the UK, and the Netherlands, wind energy covers at least a quarter of demand.

However, to sustain electrification and stabilise energy markets, wind energy expansion needs to accelerate.

According to Christoph Zipf, WindEurope’s spokesperson, “Building more wind farms is key to meeting the EU’s Clean Industrial Deal and ensuring affordable and sustainable energy for European industries”.

The Clean Industrial Deal, recently unveiled by the European Commission, highlights electrification as a key strategy for boosting European competitiveness. However, WindEurope warns that without rapid expansion of wind capacity, industries will struggle to secure clean electricity at competitive prices, particularly as China is already surpassing Europe in industrial electrification.

Major industries, such as chemicals, cement, and aluminium, are projected to see their electricity demand rise by more than 50% by 2040. If Europe fails to meet this demand with wind energy, it risks falling behind in global industrial competitiveness.

The Urge for Structural Changes in the Wind Sector

Europe has the potential to lead the global energy transition, with wind power at its core. However, without urgent modernisation of the grid and faster permitting processes, the sector will struggle to scale at the required pace.

European governments must take immediate action to unlock investment, enhance infrastructure, and accelerate permitting. Otherwise, energy security and climate targets will remain out of reach. The time to act is now.

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