Abstract
Offshore wind power has made remarkable strides over the past decade, establishing
itself as a financially viable technology with substantial potential to drive the energy
transition of North Sea countries. The energy crisis commencing in 2021 further
underscored the critical role of offshore wind in attaining net zero climate (or climate
neutrality) objectives, prompting North Sea countries to adopt comprehensive strategies,
including a fundamental energy system overhaul centered around offshore wind.
Consequently, these countries have set ambitious offshore wind installation targets for
both 2030 and 2050. To assess the attainability of these targets, this paper conducts an
extensive policy analysis of the eight nations surrounding the North Sea, focusing
primarily on the development stage, a crucial determinant of project success. Notably,
competitive tenders and Contract for Difference (CfD) mechanisms are becoming
standard tools across the region, indicating a collective shift towards efficient subsidy
frameworks. Historical data and disparities suggest the formidable challenges in
achieving the 2030 and 2050 targets, with streamlining the approval process emerging
as a top priority. The emergence of negative subsidies in conjunction with zero-bid
scenarios is reshaping industry paradigms is significantly impacting offshore wind
project economics.