COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU Strategy to harness the potential of offshore renewable energy for a climate neutral future
Date: 2020-11-19
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, energy grid, energy production, energy research, energy technology, investment, littoral, marine energy, renewable energy, wind energy

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.11.2020  COM(2020) 741 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU Strategy to harness the potential of offshore renewable energy for a climate neutral future                             {SWD(2020) 273 final}  
 
 
1.  OFFSHORE RENEWABLE ENERGY FOR A CLIMATE-NEUTRAL EUROPE 

The  world’s  first  offshore  wind  farm  was  installed  in  Vindeby,  off  the  southern  coast  of 
Denmark, in 1991. At the time, few believed this could be more than a demonstration project1. 
30 years later, offshore wind energy is a mature, large-scale technology providing energy for 
millions of people across the globe. New installations have high capacity factors and the costs 
have steadily fallen over the last 10 years.  

Today, offshore wind produces clean electricity that compete with, and sometimes is cheaper 
than existing fossil fuel-based technology. It is a story of undisputed European technological 
and industrial leadership: European laboratories and industries are rapidly developing a range 
of other  technologies to harness the power of our  seas for producing  green electricity, from 
floating  offshore  wind2,  to  ocean  energy  technologies  such  as  wave  or  tidal3,  floating 
photovoltaic installations and the use of algae to produce biofuels.  

Europe’s first-mover advantage in offshore renewable energies can rely on the vast potential 
offered  by  European  Union’s  seas,  from  the  North  Sea  and  the  Baltic  Sea  to  the 
Mediterranean,  from  the  Atlantic  to  the  Black  Sea,  as  well  as  the  seas  surrounding  the  EU 
outermost regions4 and the overseas countries and territories. Tapping this technological and 
physical potential is crucial if Europe is to achieve its carbon emission reduction targets for 
2030 and become climate neutral by 2050. 

The European Green Deal Communication fully recognised this potential in contributing to a 
modern,  resource  efficient  and  competitive  economy.  The  2030  climate  target  plan  outlined 
why,  and  how,  greenhouse-gas  emissions  should  be  reduced  by  at  least  55%  by  2030 
compared  to  1990.  This  will  require  a  scale  up  of  the  offshore  wind  industry,  which  is 
estimated  to  require  less  than  3%  of  the  European  maritime  space  and  can  therefore  be 
compatible with the goals of the EU Biodiversity Strategy5.  

Europe  has  a  major  opportunity  to  ramp  up  renewable  power  generation6,  to  increase  the 
direct use of electricity for a wider spectrum of end uses and to support indirect electrification 
through hydrogen and synthetic fuels as well as other decarbonised gases, as illustrated in the 
energy  system  integration7  and  the  hydrogen  strategies8.  The  EU  Hydrogen  Strategy,  in 
particular, sets an objective of 40 GW of renewables linked electrolysis capacity in the EU by 
2030.  Offshore  renewable  energy  is  among  the  renewable  technologies  with  the  greatest 
potential  to  scale  up.  Starting  from  today’s  installed  offshore  wind  capacity  of  12  GW,  the 
Commission  estimates  that  the  objective  to  have  an  installed  capacity  of  at  least  60 GW  of 

1 The farm generated 5MW and covered the annual energy consumption of 2 200 households during 25 years. 
2 4 out of 15 floating turbines worldwide are produced and located in the European Union 
3 With 13,5 MW of the global 34 MW ocean energy capacity installed in EU27 waters in 2019, ref. European 
Commission (2020) Clean Energy Transition – Technologies and Innovations Report (Annex to {SWD (2020) 
953} ) 
4 Despite being located thousands of kilometres from the European continent, the EU's 9 outermost regions are 
an integral part of the Union: Guadeloupe, French Guiana, Martinique and Saint-Martin (Caribbean sea), 
Réunion and Mayotte (Indian Ocean), the Canary Islands, the Azores and Madeira (Atlantic Ocean) 
5 EU Biodiversity Strategy for 2030. Bringing nature back into our lives. COM/2020/380 final 
6 The impact assessment accompanying the 2030 climate target plan  projects that by 2030 over 80% of 
electricity should be generated by renewable sources - https://ec.europa.eu/clima/policies/eu-climate-
action/2030_ctp_en 
7 https://ec.europa.eu/energy/topics/energy-system-integration/eu-strategy-energy-system-integration_en 
8 https://ec.europa.eu/energy/topics/energy-system-integration/hydrogen_en 

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offshore  wind  and  at  least  1  GW  of  ocean  energy9  by  2030,  with  a  view  to  reach  by  2050 
300 GW10  and  40 GW11  of  installed  capacity,  respectively,  is  realistic  and  achievable. 
Achieving  these  objectives  would  deliver  major  gains  in  terms  of  decarbonising  electricity 
generation, enable decarbonisation of hard-to-abate sectors with renewable hydrogen as well 
as deliver major benefits in terms of jobs and growth, thus contributing to the post COVID-19 
recovery and positioning the EU as a leader in clean technologies, to the joint benefit of its 
climate-neutrality  and  zero  pollution  goals.  Getting  to  300 GW  of  offshore  wind  and  to 
40 GW of ocean energy installed capacity by 2050 means a massive change of scale for the 
sector in less than 30 years, at a speed unparalleled by the past development of other energy 
technologies.  It  means  multiplying  the  capacity  for  offshore  renewable  energy  by  nearly  30 
times by 2050. The investment needed to do so is estimated at up to EUR 800 billion12.  

Market forces, technological advances and price developments will continue to drive offshore 
renewable energy growth over the coming years. Nonetheless, such a change in pace requires 
overcoming a number of obstacles and ensuring that throughout the supply chain all players 
can both accelerate and sustain this increase in deployment rate. A greater involvement of the 
EU and of Member States’ governments is needed, as under current policies the present and 
projected installation capacity would lead to only approximately 90 GW13 in 2050.  

To  change  gear,  the  EU  and  Member  States  need  a  long-term  framework  for  business  and 
investors that promotes a sound coexistence between offshore installations and other uses of 
the sea space, contributes to the protection of the environment and biodiversity and allows for 
thriving  fishing  communities.  It  helps  create  quality  jobs,  facilitates  grid  infrastructure 
development14,  enhances  cross-border  cooperation  and  coordination,  ensures  that  research 
funding  is  channelled  to  the  development  and  deployment  of  non-mature  technologies  and 
promotes  the  competitiveness  and  resilience  of  the  entire  EU  supply  chain  and  industry. 
Digital technologies should be a key enabler, fostering an acceleration in the development and 
integration of the offshore energy production into broader energy systems, while minimising 
environmental impacts, providing precision, efficiency, advanced data analysis and AI-based 
solutions. 

This  Communication  proposes  an  EU  strategy  to  make  offshore  renewable  energy  a  core 
component  of  Europe’s  energy  system  by  2050.  This  requires  taking  a  diversified  approach 
tailored to different situations. Therefore the strategy presents a general enabling framework, 
addressing  barriers  and  challenges  common  to  all  offshore  technologies  and  sea  basins  but 
also  sets  out  specific  policy  solutions  adapted  to  the  different  state  of  development  of 
technologies and regional contexts. Every sea basin in Europe is different, and has different 
potential  due  to  each  specific  geological  conditions  and  the  specific  stage  of  offshore 
renewable energy development. Therefore different technologies suit different sea basins.   

9 Citation: European Commission (2020) — Progress of clean energy competitiveness (SWD (2020) 953 final). 
10 According to the CTP-MIX scenario from the Impact Assessment accompanying the 2030 climate target plan - 
COM(2020) 562 final. 
11 JRC (2019) Technology Market Report Ocean Energy, JRC117349. 
12 JRC (2020) Facts and figures on Offshore Renewable Energy Sources in Europe, JRC121366. 
13 Based on the National Energy Climate Plans submitted by Member States, 
https://ec.europa.eu/energy/topics/energy-strategy/national-energy-climate-plans_en#final-necps 
14 The Commission has issued a relevant guidance document on “Energy transmission infrastructure and EU 
nature legislation” 
https://ec.europa.eu/environment/nature/natura2000/management/pdf/guidance_on_energy_transmission_infrastr
ucture_and_eu_nature_legislation_en.pdf 

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Given the long lead time of offshore renewable projects (up to 10 years), this strategy sets out 
a  strategic  direction  and  the  accompanying  conditions  at  a  crucial  juncture  to  ensure  that 
offshore renewable  technologies  can  make  a difference for achieving our  climate objectives 
for 2030 and 2050. This also comes at a moment when the NextGenerationEU recovery fund 
provides a unique opportunity to mobilise public capital to offset the risk that private offshore 
investment slow down due to COVID 19 crisis.  

Together  with  this  strategy,  the  Commission  presents  an  accompanying  staff  working 
document providing guidance on electricity market arrangements. 

2.  OUTLOOK FOR OFFSHORE RENEWABLE ENERGY TECHNOLOGIES 

The  term  ‘offshore  renewable  energy  technology’  encompasses  a  number  of  clean  energy 
technologies  that  are  at  different  stages  of  maturity.  Large  commercial-scale  projects  are 
currently operating in European waters for bottom-fixed wind turbines but other technologies 
are starting to catch up. Large commercial floating wind energy projects are being announced 
in  some  Member  States  and  ocean  energy  is  reaching  a  level  of  maturity  that  makes  them 
attractive to future applications. 

Source: JRC 

The EU is a global leader in renewable energy offshore technology and industries. Europe’s 
offshore  wind  industry  benefits  from  having  a  first-mover  advantage  in  bottom-fixed  wind 
turbines with a strong home market where 93% of the European installed offshore capacity in 
2019 was produced in Europe15. The EU27 offshore wind market represents 42% (12 GW) of 
the global market in terms of cumulative installed capacity, followed by the UK (9.7 GW) and 
China (6.8 GW). European companies are key operators on the global offshore wind market16 
though they face increasing competition from Asian companies. The global levelised cost of 
electricity  (LCOE)  for  offshore  wind  decreased  by  44%  in  10  years,  reaching  EUR 45-
79/MWh in 2019.  

EU  renewable  energy  industries  are  also  strong  in  the  emerging  technology  of  floating 
offshore  wind.  Multiple  floating  designs  exist  and/or  are  being  developed,  none  of  which 
prevail at this stage. By 2024, 150 MW of floating offshore wind turbines are expected to be 
commissioned.  A  higher  level  of  ambition  and  clarity  is  needed  to  reach  a  market  size 
sufficient  to  yield  cost  reductions:  there  is  potential  to  reach  an  LCOE  of  less  than 
EUR 100/MWh in 2030 if large capacity is deployed.  

15 Progress of clean energy competitiveness (SWD (2020) 953 final) 
16 JRC 2019: Technology Market Report Wind Energy, JRC118314 

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The EU industry is also the global leader for developing ocean energy technologies, mainly 
wave  and  tidal.  EU  companies  hold  66%  of  patents  in  tidal  and  44%  of  patents  in  wave 
energy,  and  70%  of  the  global  ocean  energy  capacity  has  been  developed  by  EU27  based 
companies. Currently all projects worldwide use EU technology. Ocean energy technologies 
are  relatively  stable  and  predictable  and  can  complement  wind  and  solar  PV.  Currently,  no 
specific ocean technology prevails and the sector still struggles to create an EU market despite 
progress  in  development  and  demonstration.  However,  ocean  technologies  could  make  a 
significant contribution to Europe’s energy system and industry as from 2030, in particular by 
supporting  grid  stability  and  playing  a  crucial  role  in  decarbonising  islands  in  the  EU. 
Currently,  while  a  significant  reduction  in  cost  would  be  needed  for  tidal  and  wave  energy 
technologies to reach their potential in the energy mix, the sector has already cut costs by 40% 
since  2015,  faster  than  anticipated.  A  crucial  but  feasible  step  to  reach  commercial  size  by 
2030 would be implementing the existing pipeline of 100 MW pilot-farms projects by 2025. 

Other technologies are still at the early stages of development but could be promising for the 
future: algal biofuels (biodiesel, biogas, and bioethanol), ocean thermal energy conversion 
(OTEC) and floating photovoltaic installations (already deployed in landlocked waters but 
mainly at the research and demonstration stage at the sea, with only 17 kW installed).  

The EU offshore renewable technology sector 

Wind  turbine  manufacturers,  companies  specialised  in  the  construction  of  towers  and 
foundations, cable suppliers and vessels operators are all part of a supply chain active for the 
whole  sector.  The  sector  comprises  hundreds  of  operators,  many  of  which  are  SMEs  that 
supply  components,  and  employs  thousands  of  workers,  engineers  and  scientists.  Today, 
62 000  people  work  in  the  offshore  wind  industry17  and  around  2 500  in  the  ocean  energy 
sector18. The offshore renewable technology sector is outperforming the conventional energy 
sector in terms of value added, labour productivity and employment growth, and can provide 
a stronger contribution to GDP growth in the EU over the coming years.  

Offshore renewable energy development is a true European success story. Although offshore 
renewable  installations  are  still  concentrated  in  some  sea  basins,  the  industrial  activity 
underpinning  them  is  fed  by  a  large  number  of  businesses  spread  across  EU  countries  and 
regions, including inland and landlocked regions. For example, wind turbine components are 
manufactured in Austria, Czech Republic and inland regions in Spain, France, Germany and 
Poland19.  

17 Wind Europe. 
18 European Commission, the EU Blue Economy Report — 2020. 
19 JRC 2019: Technology Market Report Wind Energy, JRC118314. 

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Manufacturing facilities of onshore and offshore wind energy components in Europe (July 2020 update)20 

3.  EU’S  SEA  BASINS:  A  VAST  AND  VARIED  POTENTIAL  TO  DEPLOY 

OFFSHORE RENEWABLES 

The  EU  has  the  largest  maritime  space  in  the  world  and  is  in  a  unique  position  to  develop 
offshore renewable energy thanks to the variety and complementarity of its sea basins.  

Regional cooperation has recently been  stepped up in  some sea basins, with  the North Seas 
Energy Cooperation (NSEC)21providing the most advanced example and  reference point for 
other Member States willing to tap the full potential of offshore renewable energy. Offshore 
renewable energy is now a pan-European  priority and cooperation  at  regional level is  being 
extended to all sea basins and to all Member States. The work ongoing in the Baltic Energy 
Market  Interconnection  Plan  (BEMIP)  or  the  High  Level  Group  for  south-west  Europe  on 
interconnections and the Central and South Eastern Europe Energy Connectivity (CESEC) is 
very relevant in this context. In June 2020, the Memorandum of Split22 focused on offshore 
renewable energy in the context of work to achieve an energy transition in the islands.  

20 JRC (2019) Wind Energy Technology Market Report, JRC118314. 
21 Established in 2016 
22 https://ec.europa.eu/regional_policy/sources/policy/themes/sparsely-populated-
areas/eu2020_mou_split_en.pdf 

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Offshore wind technical potential in sea basins accessible to EU27 countries (JRC ENSPRESO 2019)23 

The North Sea has a high and widespread natural potential for offshore wind energy thanks to 
shallow waters and localised potential for wave and tidal energy. The North Sea is currently 
the world’s leading region for deployed capacity and expertise in offshore wind. It has a solid 
political  and  governance  foundation  with  the  NSEC.  It  also  benefits  from  the  expertise  of 
organisations  such  as  the  OSPAR  Convention24,  which  brings  together  15  governments  and 
the EU to cooperate on the protection of the marine environment in the North-East Atlantic.  

The Baltic Sea also has a high natural potential for offshore wind energy25 and some localised 
potential  for  wave  energy.  Countries  have  started  to  cooperate  more  closely  to  tap  this 
potential,  including  in  the  Baltic  Energy  Market  Interconnection  Plan  (BEMIP)  High-Level 
Group26,  the  ‘Vision  And  Strategies  Around  the  Baltic  Sea’  initiative  (VASAB),  the  Baltic 
Marine  Environment  Protection  Commission,  (Helsinki  Commission  -  HELCOM),  and  the 
EU strategy for the Baltic Sea Region27.  

The  EU’s  Atlantic  ocean  has  a  high  natural  potential  for  both  bottom-fixed  and  floating 
offshore wind energy and good natural potential for wave and tidal energy. Member States are 
developing  a  strong  pipeline  of  demonstration  projects,  building  upon  years  of  experience 
from installed and grid connected equipment and a world-leading network of test centres. The 
EU’s Atlantic strategy and the 2020 revised Atlantic action plan28 identify offshore renewable 
energy  as  a strategic  area  for  cooperation.  France,  Spain  and  Portugal  have  also  established 
the  High  Level  Group  for  south-west  Europe  on 
good  regional  cooperation 
interconnections. 

in 

23 JRC (2019) JRC ENSPRESO - WIND - ONSHORE and OFFSHORE. European Commission, Joint Research 
Centre (JRC) [Dataset] PID: http://data.europa.eu/89h/6d0774ec-4fe5-4ca3-8564-626f4927744e 
24 www.ospar.org 
25  93  GW  according 
https://op.europa.eu/fr/publication-detail/-/publication/9590cdee-cd30-11e9-992f-01aa75ed71a1 
26 BEMIP is planning to adopt a work programme for offshore wind development by the spring of 2021. 
27 www.balticsea-region-strategy.eu 
28 COM(2020) 329 final. 

the  Study  on  Baltic  offshore  wind  energy  cooperation  under  BEMIP 

to 

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The Mediterranean sea has a high potential of offshore wind energy (mostly floating), and 
good  potential  for  wave  energy  and  localised  potential  for  tidal  energy29.  Regional 
cooperation  on  offshore  renewables 
the  Barcelona  Convention 
(environment)  and  the  WestMed  initiative30.  Recently,  the  MED7  Alliance  also  specifically 
referred  to  support  for  the  development  of  offshore  renewable  energy  in  the  Mediterranean 
Sea  and  in  the  Atlantic31.  The  Central  and  South  Eastern  Europe  Energy  connectivity 
(CESEC)  High  Level  Group  could  foster  regional  cooperation  initiatives,  from  the  Adriatic 
Sea eastward.  

is  organised  under 

The Black Sea offers a good natural potential for offshore wind (bottom-fixed and floating) 
and  localised  potential  for  wave  energy.  Regional  cooperation  already  takes  place  in  the 
context  of  the  Common  Maritime  Agenda  for  the  Black  Sea32.  The  Black  Sea  strategic 
research  and  innovation  agenda33  lists  as  one  of  its  priorities  to  stimulate  emerging  blue 
economy sectors, such as offshore wind and wave technology. The CESEC High Level Group 
could also foster regional cooperation initiatives in the Black Sea. 

EU islands have large potential in marine energies and can play important role in the EU’s 
offshore energy development. They provide attractive testing and demonstration grounds for 
innovative  offshore  electricity  generation  technologies.  The  Clean  Energy  for  EU  Islands 
Initiative34  provides  a  long  term  cooperation  framework  to  promote  replicable  and  scalable 
projects  with  funding  from  private  sector  investors,  relevant  EU  support  instruments,  and 
technical assistance, in order to accelerate clean energy transition on all EU islands.  

In addition many European outermost regions and overseas countries and territories have 
a  good  potential  for  offshore  renewable  energy  and  are  pioneers  in  decarbonising  islands, 
which are included in the Clean Energy for EU Islands Initiative. New initiatives, including 
cooperation with neighbouring regions when possible, should help optimise this potential. 

4.  HOW TO SCALE UP THE DEPLOYMENT OF OFFSHORE RENEWABLE ENERGY IN EUROPE 

There are many challenges to overcome to achieve the vision set out in this strategy of a 300-
40 GW  deployment  of  offshore  renewable  energy  across  all  EU  sea  basins  by  2050.  The 
following sections review the main ones and make policy and regulatory proposals to address 
them.  

4.1 Maritime spatial planning for sustainable management of space and resources  

Achieving  an  installed  capacity  of  300-40  GW  of  offshore  renewable  energy  by  2050  will 
require  identifying  and  using  a  much  larger  number  of  sites  for  offshore  renewable  energy 
production and connection to the power transmission grid. Public authorities should therefore 
plan  this  long-term  developments  early  on,  assessing  their  environmental,  social  and 
economic  sustainability,  ensuring  coexistence  with  other  activities,  such  as  fisheries  and 

29  32  to  75  GW  potential  according  to  the  Study  on  the  offshore  grid  potential  in  the  Mediterranean  region 
(Guidehouse, 2020-11) - https://data.europa.eu/doi10.2833/742284. 
30 www.westmed-initiative.eu 
31 www.diplomatie.gouv.fr/en/french-foreign-policy/europe/news/article/ajaccio-declaration-after-the-7th-
summit-of-the-southern-eu-countries-med7-10 
32 https://ec.europa.eu/newsroom/mare/document.cfm?doc_id=59314 
33 https://ec.europa.eu/newsroom/mare/document.cfm?doc_id=59317 
34 https://euislands.eu/ 

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aquaculture,  shipping,  tourism,  defence  or  infrastructure  deployment,  and  making  sure  the 
public accept planned deployments.  

The  development  of  offshore  renewable  energy  must  also  comply  with 
the  EU 
environmental legislation and the integrated maritime policy35. The choice of the site for 
an offshore renewable energy project is a delicate process. Designated sea spaces for offshore 
energy  exploitation  should  be  compatible  with  biodiversity  protection,  take  into  account 
socio-economic  consequences  for  sectors  relying  on  good  health  of  marine  ecosystems  and 
integrate as much as possible other uses of the sea.  

Maritime  spatial  planning  is  an  essential  and  well-established  tool  to  anticipate  change, 
prevent and mitigate conflicts between policy priorities while also creating synergies between 
economic sectors. 

Offshore renewable energy can and should coexist with many other activities, in particular in 
crowded areas. To this end, national maritime spatial planning should adopt a holistic, multi-
use/multipurpose  approach.  The  take-up  of  this  practice  is  increasing  in  EU  Member 
States in promising ways. It has demonstrated that the development of energy infrastructures 
is  not  incompatible  with  shipping  routes  and  that  it  is  possible  to  develop  sustainable 
economic activities in marine protected areas. Such experiences and good practices on multi-
use  should  be  transferred  to  all  sea  uses,  including  the  defence  and  security  sectors.  In  this 
context, projects will also draw on the latest monitoring and digital tools to ensure efficient 
coexistence. Minimising the impact of offshore energy on the habitat and on protected species 
can  also  be  helped  by  the  use  of  new  technologies.    Further  research  and  experimentation 
should therefore be  fostered to  further advance multi-use  pilot projects and make  the multi-
use  approach  more  operational  and  attractive  to  investors.  This  could  be  facilitated  within 
regional  cooperation  fora.  Member  States  could  also  usefully  consider  including  multi  use 
criteria in the tender and permitting procedure. 

Examples of successful multi-use pilot projects with offshore renewable energy 

Offshore  windfarm  and  aquaculture.  The  MERMAID  project  identified  environmental 
benefits from different combinations of aquaculture and offshore renewable energy systems. It 
resulted in several pilot projects run in Belgium, Germany, Spain, France, The Netherlands 
and  Portugal  on  molluscs,  algae  and  multi-use  offshore  platforms  (e.g.  Edulis,  TROPOS, 
Wier en Wind). 

the  Mediterranean  Sea.  The 
Marine  protected  areas  and 
PHAROS4MPAs Interreg project documented interaction between marine protected areas in 
the Mediterranean and the blue economy, including offshore wind farms. It provides guidance 
on how to prevent or minimise the environmental impacts of key sectors. 

the  blue  economy 

in 

Cooperation in the Baltic Sea helped define corridors for cables and pipelines that minimise 
crossing of shipping lines and risks of fishers (BalticLINes Interreg project). Some fishermen 
are also working part-time for offshore wind farms36.  

35 The most relevant policy instruments are: the Habitats and Birds Directives, the Marine Strategy Framework 
Directive, Maritime Spatial Planning Directive, the common fisheries policy, SEA, EIA, ELD, Aarhus 
Convention, as well as the Biodiversity Strategy and the Circular Economy Action plan. 
36 In Germany and Denmark 

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The  Maritime  Spatial  Planning  Directive37  requires  all  coastal  Member  States  to  submit 
national maritime spatial plans to the European Commission by 31 March 2021. These 
plans  will  be  subject  to  a  strategic  environmental  assessment  under  Directive  2001/42/EC 
(‘SEA  Directive’)  and  to  additional  assessments  as  required  by  the  Habitats38  and  Birds39 
Directives  in  order  to  ensure  the  protection  of  Natura  2000  sites  and  protected  species40. 
These  procedures  should  ensure  that  potential  negative  impacts  on  the  natural  environment 
are avoided and reduced at a very early stage in the planning process. 

A chief challenge is therefore to integrate offshore renewable energy development objectives 
when  developing  Member  States’  national  maritime  spatial  plans  based  on  their  national 
energy  and  climate  plans.  This  would  signal  to  business  and  investors  the  governments’ 
intentions  with  regard  to  the  future  development  of  the  renewable  offshore  sector,  helping 
both the private and the public sector to plan ahead.   

In  this  context,  safety  and  security  are  of  primary  importance  in  the  maritime  environment. 
Areas with the highest potential for offshore renewable energy are also the most exposed to 
risks of collisions with vessels, fishing gears, military activities, or dumped ammunitions and 
chemicals. A common strategic approach of Member States to risks at sea-basins level would 
benefit  all  maritime  activities,  and  especially  the  offshore  renewable  energy  sector  with  its 
high demand for new accessible sites.  

In  addition,  robust  maritime  spatial  planning  can  also  result  in  the  proper  protection  of 
vulnerable  marine  ecosystems,  in  line  with  the  obligations  to  reach  good  environmental 
status enshrined in the Marine Strategy Framework Directive41, notably in view of the update 
of their programs of marine measures due in 2022. The EU’s biodiversity strategy calls for the 
expansion  and  the  effective  management  of  the  EU’s  network  of  protected  areas,  aiming  to 
extend the area from 11% to 30%, and to strictly protect one third of it (up from 1% today).  

To ensure the success of large-scale offshore renewable energy planning and deployment, it 
will be necessary to boost regional cooperation, also through the EU macro-regional strategies 
cooperation frameworks42 and the Interreg funding programmes43 Both the Maritime Spatial 
Planning Directive and the Marine Strategy Framework Directive require Member States to 
work together across borders, at sea-basin level. It is for Member States to decide whether, 
where and to what extent to expand offshore renewable energies in their exclusive economic 
zone  but  some of the problems of identifying the  best sites and coexistence with  other uses 
can be best overcome by addressing them at regional level.  

The  European  Commission  will  therefore  continue  working  closely  with  Member  States  to 
support  the  preparation  and  implementation  of  national  maritime  spatial  plans  and  marine 
strategies in a coordinated manner, factoring in regional considerations.  

37 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0089 
38 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:01992L0043-20130701. 
39 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0147. 
40 The Commission has issued a relevant Guidance document on “Wind Energy Developments and EU nature 
legislation” 
https://ec.europa.eu/environment/nature/natura2000/management/natura_2000_and_renewable_energy_develop
ments_en.htm 
41 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32008L0056&from=EN 
42 https://ec.europa.eu/regional_policy/en/policy/cooperation/macro-regional-strategies/  
43 https://ec.europa.eu/regional_policy/en/policy/cooperation/european-territorial/  

9 

 
 
                                                            
Sea basin strategies and plans44, as well as regional sea conventions45 can help harmonise 
and  coordinate  the  development  of  offshore  renewable  energy  between  Member  States. 
Regional  seas  conventions  aim  to  protect  the  marine  environment  of  particular  marine 
regions. They can be a forum to share knowledge46 and to take legally binding decisions. It is 
essential  to  strengthen  sea  basin  cooperation  and  coordination  with  other  regional  fora 
dedicated to renewable energy and maritime planning. 

Public consultation is an integral part of environmental and socio-economic assessments and 
of  maritime  spatial  planning  processes.  Early  involvement  of  all  groups  concerned  is 
crucial to allow for the timely deployment of new capacity. Regional or national authorities 
have  a legal obligation and a responsibility to proactively inform them about projects, rules 
and potential for the development of multi-uses of the maritime space. The Commission will 
further analyse the interactions between offshore renewable energy and other activities at sea, 
such  as  fisheries, aquaculture, shipping and tourism47 and  strongly  encourages  this dialogue 
with  the  communities  that  are  most  concerned.  At  European  national,  regional  and  local 
levels,  offshore  renewable  developers,  other  users  of  the  sea,  social  partners,  NGOs  and 
public  authorities  in  coastal  areas  should  engage  in  a  long-term  strategic  discussion  on 
reaching shared goals.  

Lastly, offshore renewable energy will only be sustainable if it does not have adverse impacts 
on  the  environment  as  well  as  on  the  economic,  social  and  territorial  cohesion.  Although 
current  evidence  suggests  that  this  is  possible,  the  situation  must  be  monitored  and  our 
scientific  knowledge  updated  as  capacity  is  scaled  up  and  new  technologies  are  developed. 
Therefore we need greater and more systematic in-depth analyses and data exchange, using 
the  best  available  modelling  tools,  to  monitor  potential  cumulative  impacts  on  the  marine 
environment and the interaction between offshore renewable energy and other activities at sea 
such as fisheries and aquaculture.  

The  Commission  invites  Member  State  developers  and  stakeholders  to  improve  the  quality 
and use of the Copernicus Marine Environment Monitoring Service and the European Marine 
Observation and  Data  Network  (EMODnet). As  open  data  platforms,  these  services provide 
highly  valuable  information  to  sea  users,  notably  offshore  renewable  energy  developers. 
Moreover, competent authorities should provide operators with binding provisions to monitor 
possible impacts on the marine environment, and this data should be made public and easily 
available. As a next step, the data must be analysed and evaluated in order to provide usable 
findings and support policy decision.  

To  facilitate  dialogue  on  the  environmental,  economic  and  social  sustainability  of  offshore 
renewable  energy,  the  Commission  is  ready  to  facilitate  and  promote  a  ‘community  of 
practice’ where all stakeholders, industry, social partners, NGOs and scientists can exchange 
views, share experience and work on joint projects.   

44 https://ec.europa.eu/maritimeaffairs/policy/sea_basins_en. 
45 Helsinki Convention for the Baltic Sea (HELCOM), OSPAR Convention for the North Sea and the North 
West Atlantic, the Barcelona Convention for the Mediterranean and the Bucharest Convention for the Black Sea. 
46 e.g. OSPAR guidelines on wind farm development (https://www.ospar.org/work-areas/eiha/offshore-
renewables)  
47 https://www.msp-platform.eu/sector-information/tourism-and-offshore-wind 

10 

 
 
                                                            
Key actions 

  The Commission will facilitate cross-border cooperation and encourage  Member States to 
integrate objectives of offshore renewable energy development in their  national maritime 
spatial plans, in line with national energy and climate plans - NECPs (March 2021).  
  The Commission will report on the implementation of the MSP Directive48  reflecting the 

long-term development of offshore renewable (2022). 

  The Commission will develop with Member States and regional organisations a common 
approach  and  pilot  projects  on  MSP  at  sea-basin  level  looking  at  risks  at  sea,  the 
compatibility with nature protection and restoration (2021-2025).  

  The Commission presents today a  guidance  document on wind energy development and 

EU nature legislation49. 

  The Commission will promote in 2021 a dialogue on offshore renewable between public 
authorities, stakeholders and scientists in the form of a community of practice. (2021). 
  The  Commission  will  support  multi-use  projects  with  Member  States  and  regional 

organisations (2021-2025). 

  The Commission and the European Defence Agency will set up a joint action to identify 
barriers  for  offshore  renewable  energy  developments  in  areas  reserved  for  defence 
activities and improve co-existence. 

4.2  A new approach to offshore renewable energy and grid infrastructure 

The spatial planning of offshore renewable energy is closely linked with offshore and onshore 
grid  development.  This  section  presents  different  stages  in  offshore  grid  development,  and 
what  measures  would  support  the  infrastructure  needed  to  make  large-scale  offshore 
renewable energy a reality.  

Most existing offshore wind farms have been deployed as national projects connected directly 
to the shore via radial links (figure 1). This way of developing offshore renewable energy is 
expected to continue, in particular in areas where offshore development is only taking off. In 
parallel, the national grid transmission system operators (TSOs) are also expected to continue 
to build cross-border interconnectors for electricity trading and security of supply.   

Figure 1 Offshore windfarms connected radially to the shore and separate interconnector 

48 Article 14 of Directive 2014/89/EU 
49 Commission notice Guidance document on wind energy developments and EU nature legislation - 
C(2020)7730 final 

11 

 
 
 
 
 
                                                            
In order to step up offshore renewable energy deployment in a cost efficient and sustainable 
way,  a  more  rational  grid  planning  and  the  development  of  a  meshed  grid50  is  key.  In  this 
context, the concept of so-called hybrid projects51 has been given considerable attention over 
the last years. A hybrid project can be set up in different ways, including energy islands and 
hubs.  As  an  example  of  a  hybrid  project  (figure  2)  the  offshore  wind  production  is  directly 
connected to a cross-border interconnector52.  

Figure 2 Example of a hybrid project, the tie-in model 

The main difference between the grid connected radially and a hybrid projects is that the grid 
has a dual functionality combining electricity interconnection between two or more Member 
States, and transportation of offshore renewable energy, to its sites of consumption.  

A share of the future offshore grid will ideally be built around hybrid projects, in cases where 
they  can  reduce  costs  and  use  of  maritime  space.  Offshore  hybrid  projects  bring  together 
offshore  energy  generation  and  transmission  in  a  cross-border  setting,  yielding  significant 
savings  in  terms  of  costs  and  space  use  compared  to  the  current  approach  relying  on  radial 
connections and separately develop cross-border electricity interconnectors for trade, without 
connecting  offshore  generation.  Hybrid  projects  will  form  an  intermediate  step  between 
smaller-scale  national  projects  and  a  fully  meshed,  offshore  energy  system  and  grid.  In  this 
context, the interoperability of the various national off-shore systems is necessary. 

To achieve a significant scale-up of offshore renewable energy, the development and planning 
for an offshore grid needs to go beyond national borders and cover the whole sea basin and 
should  increasingly  consider  the  possibility  of  multi-functionality,  in  the  form  of  hybrid 
projects or at later stage a more meshed grid. Therefore, as a first step, Member States need to 
take a coordinated approach and make a long-term commitment to offshore renewable energy 
development. They should together set ambitious targets for offshore renewables in each sea 
basin,  while  taking  into  account  environmental  protection,  socio-economic  impacts  and 
maritime  spatial  planning.  These 
into  a  memorandum  of 
targets  could 
understanding  or  an  intergovernmental  agreement  between  the  relevant  Member  States, 
taking into account the specificities of the sea basin concerned.  The Commission is ready to 
facilitate the coordination process to reach an agreement on such a long-term commitment, by 
bringing the concerned Member States together, and providing practical assistance (e.g. in the 
form  of  a  template),  in  order  to  set  a  clear  direction,  taking  into  account  the  regional 

translate 

50 An offshore meshed grid would be similar to the onshore interlinked transmission grid system, where 
electricity can flow in many directions. 
51 Roland Berger GmbH (2019), Hybrid projects: How to reduce costs and space of offshore developments, 
North Seas Offshore energy Clusters study  
https://op.europa.eu/en/publication-detail/-/publication/59165f6d-802e-11e9-9f05-01aa75ed71a1 
52 Figure 2 - The dotted line represents the EEZ border. 

12 

 
 
 
                                                            
cooperation related provisions under the Regulation on the Governance of the Energy Union 
and Climate Action53. These commitments should be reflected in the updated National Energy 
and Climate Plans in 2023-2024.  

The next step would be to take these ambitious targets into account in an integrated regional 
grid  planning  and  development.  A  lack  of  offshore  grids  or  the  risk  of  delay  in  grid 
development  can  be  major  barriers  to  swift  deployment.  Offshore  hydrogen  production  and 
hydrogen  pipelines  are  another  option  to  deliver  offshore  energy  on-shore,  and  should  be 
considered  in  electricity  and  gas  grid  planning.  The  grid  itself  will  need  to  be  capable  of 
efficiently  integrating  the  expected  high  generation  capacities,  while  minimising  the  use  of 
maritime space. For an investor to make a decision to invest in offshore renewable generation, 
it is crucial to have a clear understanding of the timeframe and plans for offshore and onshore 
grid infrastructure development. Grid development has longer lead times (typically 10 years 
or  more)  than  offshore  power  generation,  highlighting  the  need  for  forward-looking  grid 
investment.  Furthermore  permitting  processes  in  the  Member  States  should  be  streamlined 
wherever possible to  avoid  unnecessary delays. Grid  planning should also factor in  onshore 
needs to link offshore energy to hydrogen production, etc. The commitments of the Member 
States will reduce the TSOs’ risk of developing stranded assets offshore.   

Achieving this will require greater coordination among Member States TSOs and national 
regulatory  authorities  in  the  same  sea  basin  on  planning  the  grid  infrastructure54.  The 
current legislative framework, such as the Regulation on the Governance of the Energy Union 
and  Climate  Action55  and  the  MSP  Directive,  sea-basin  strategies  and  conventions,  already 
provide  scope  for  better  regional  cooperation  to  meet  the  need  to  better  align  regional 
planning. The regional cooperation framework set up under the TEN-E Regulation to identify 
projects of common interest is also a good model to build upon.  

In the short term, it would appear necessary to set up more structured cooperation between 
the  Member  States,  TSOs  and  regulators  to  formulate  more  integrated  and  optimised 
regional offshore grid planning, taking into account  maritime spatial plans.  At a later stage, 
offshore  grid  planning  could  eventually  become  a  task  with  a  stronger  role  carried  out  by 
regional coordination centres56, which will enter into operation in 2022, to complement the 
role of national TSOs in carrying out tasks of regional relevance. In the long term, structural 
cooperation could be further enhanced by establishing regional offshore independent system 
operators to operate and develop increasingly meshed offshore grids. 

In  order  for  the  Member  States  to  jointly  commit  to  deploying  offshore  renewables  and  to 
developing the related infrastructure, more clarity is needed on the distribution of costs and 
benefits, both amongst the Member States concerned, and between the generation assets and 
the  transmission  projects.  Therefore,  there  is  a  need  to  develop  a  robust  methodology  for 
allocating  costs  according  to  where  the  benefits  accrue.  Facilitating  cost  sharing  among 
Member  States,  TSOs,  and  offshore  wind  farm  developers  would  create  the  necessary  pre-
condition to achieve the integrated vision at sea-basin level.  

53 https://eur-lex.europa.eu/legal-
content/EN/TXT/?toc=OJ:L:2018:328:TOC&uri=uriserv:OJ.L_.2018.328.01.0001.01.ENG 
54 This can yield significant cost savings, as illustrated in recent studies such as The Baltic Wind Energy 
Cooperation under BEMIP (see reference above),  
55 https://eur-lex.europa.eu/legal-
content/EN/TXT/?toc=OJ:L:2018:328:TOC&uri=uriserv:OJ.L_.2018.328.01.0001.01.ENG 
56 Under Article 35(2) of Regulation (EU) 219/943. 

13 

 
 
                                                            
To  prepare  for  higher  future  volumes  of  offshore  energy  and  more  innovative  and forward-
looking  grid  solutions,  including  hydrogen  infrastructure,  the  regulatory  framework  should 
enable anticipatory investments, for instance to develop offshore grids with a larger capacity 
than initially needed, or grids supplied with technological features above what is needed in the 
short term.  

Key actions  

  The Commission will draw up a framework for the Member States to formulate a joint 
long-term commitment for the deployment of offshore renewable energy per sea basin 
up to 2050 (2021).  

  The  Commission  will  propose  a  framework  under  the  revised  TEN-E  Regulation  for 
long-term  offshore  grid  planning  by  the  TSOs,  involving  regulators  and  the  Member 
States in each sea basin, including for hybrid projects (December 2020). 

  Within  their  respective  remits,  the  Commission,  Member  States  and  regulators  will 
develop  a  framework  to  enable  TSOs  to  make  anticipatory  investments  in  offshore 
grids to prepare for future upscaling and development (2021 onwards). 

  The Commission will publish EU guidance on how to coordinate the sharing of costs 
and  benefits  across  borders  for  energy  transmission  projects  combined  with  the 
development of energy generation projects (by 2023).  

4.3 A clearer EU regulatory framework for offshore renewable energy 

During the transition to a more meshed offshore energy system, networks will become more 
integrated over time and the projects more complex. At this time of innovation and change, a 
predictable long-term legal framework is key to providing certainty to all bodies involved and 
to mobilising investor financing.  

A well-regulated energy market should provide the right investment signals. The Electricity 
Regulation provides rules on integrating large-scale renewable projects into the energy system 
and  electricity  market.  For  national  offshore  renewable  projects,  the  market  rules  to  a  large 
extent reflect the onshore market design of the integrated electricity market.  

However,  although  national  projects  will  continue  to  constitute  a  large  share  of  offshore 
projects,  more  complex,  cross-border  offshore  renewable  projects  are  expected  to  become 
increasingly important in most sea basins in Europe in the future. Innovative projects, such as 
energy  islands  or  hybrid  projects57  and  off-shore  hydrogen  production,  face  specific 
challenges  and  the  current  regulatory  framework  was  not  developed  with  such  projects  in 
mind. Clarification of the electricity market rules is therefore needed and provided in the Staff 
Working Document accompanying this strategy. 

Hybrid projects can today be designed in a way that is compatible with current EU legislation 
and  beneficial  for  society.  Based  on  consultations  and  studies5859,  establishing  an  offshore 

57 Recital (66) of Regulation 2019/943 on the internal market for electricity supports the development of hybrid 
projects, OJ L 158, 14.6.2019. 
58 Market Arrangements for Offshore Hybrid Projects in the North Sea (Thema Report 2020-11). 
https://data.europa.eu/doi10.2833/36426 
59 www.promotion-offshore.net/results/deliverables/ 

14 

 
 
 
 
                                                            
bidding zone for a hybrid project can be done in a way that is compatible with the electricity 
market rules and can be a well suited option for a large scale-up of offshore renewables, as it 
ensures  that  renewable  energy  can  be  fully  integrated  into  the  market  by  simultaneously 
integrating renewable energy and using cross-border interconnections for trade. This approach 
ensures  that  renewable  electricity  can  flow  to  where  it  is  needed,  becoming  part  of  the 
electricity schedules and supporting regional security of supply. It also reduces the need for 
costly after-market corrective action by TSOs. Furthermore, it provides strong price signals to 
encourage the development of offshore demand, such as green hydrogen from electrolysis.  

Nevertheless,  in  this  configuration,  producers  of  offshore  renewable  energy  are  likely  to 
receive  the  lower  electricity  market  price  from  the  markets  to  which  they  are  connected  to 
secure dispatch. Depending on the topology of the projects, this effect on revenue is expected 
to be limited to around 1%60 for over half of future hybrid projects. Yet, for some projects, it 
can be as much as 11%. For projects with significantly lower electricity market revenue, this 
occurs as congestion in the grid makes the congestion income earned by TSOs proportionately 
higher.  This  redistribution  effect  needs  to  be  addressed  to  align  incentives  and  to  enable 
hybrid projects to come forward by allowing the total value of the project to be captured.  

One way to align the incentives could be to allow Member States to use congestion income 
for  the  reallocation  to  producers  active  in  an  offshore  bidding  zone  to  ensure  that  hybrid 
projects are attractive to renewable energy investors. Until this becomes available under EU 
legislation, any incentive or support schemes should take the redistribution effect into account 
ensuring that there is no delay to the rollout of hybrid projects. 

Based  on  application  of  the  market  guidance  provided  in  the  accompanying  staff  working 
document,  the  Commission  will  assess  how  the  existing  electricity  market  framework 
supports offshore renewable energy development and will examine whether and under which 
form more specific and targeted rules are needed. 

Another issue to address is the practical, physical challenge of connecting projects to several 
markets with different connection rules. Although there are rules at EU level on connecting to 
the network, they have not been developed with offshore grids in mind. Therefore, a common 
approach  to  grid  connection  requirements  for  high-voltage  direct  current  (HVDC)  grids 
should be developed, based on experience in the North Sea basin.   

Bringing  more  clarity  to  the  regulatory  framework  can  also  provide  more  visibility  and 
predictability of expected revenue streams. One of the main objectives of the recently adopted 
electricity  market  design  is  to  make  the  market  fit  for  renewables.  Therefore  renewables 
developers  should  view  wholesale  electricity  prices  as  an  important  component  of  their 
revenue.  Although  investors  should  bear  market  risk,  part  of  the  risk  and  insufficient 
revenue  from  market  prices  can  be  compensated  through  support  schemes,  in  line  with 
State aid rules, to ensure that offshore renewable energy projects are scaled up as necessary.  

Given the zero marginal cost of offshore renewables generation, wholesale electricity prices 
currently  tend  to  be  low  in  Member  States  with  a  high  penetration  of  renewable  energy 
generation. To date, national support measures with competitive tenders in combination with 
deployment objectives have played an important role in developing and upscaling renewable 

60 Market Arrangements for Offshore Hybrid Projects in the North Sea (Thema Report 2020-11). 
https://data.europa.eu/doi10.2833/36426 

15 

 
 
                                                            
energy technologies and the associated cost reductions. A combination of an efficient market 
framework,  and  some  form  of  revenue  stabilisation  system  (de-risking,  guarantees  and 
power  purchase  agreements)  may  be  required  for  the  envisaged  upscale  of  mature  offshore 
renewable  energy  technologies.  To  facilitate  this,  the  Commission  will  foster  best  practices 
and exchanges on different auction designs. 

In addition, dedicated support will continue to be needed for  emerging offshore renewable 
technologies,  such  as  tidal,  wave  and  floating  offshore  wind  and  solar  in  order  to  move 
from the pilot and demonstration phase by focusing action on the technological solutions that 
best reconcile the EU’s economic and environmental goals.  

The current rules under the Renewable Energy Directive61 and  the State aid guidelines on 
energy and environmental protection favour a technology-neutral approach for renewables 
support,  while  recognising  that  technology-specific  auctions  can  be  justified  notably  in 
particular  circumstances  for  new  and  innovative  technologies.  In  the  last  years,  these  rules 
have been instrumental for the development of notably off-shore wind and will continue being 
important for the development of less mature technologies. The Commission will ensure that 
the forthcoming revision of the State aid rules and the Renewable Energy Directive provide a 
fully updated and fit-for-purpose enabling framework to cost-effectively deploy clean energy, 
including renewable offshore energy.  

Over the coming years, the range of cooperation mechanisms available under the Renewable 
Energy Directive62 (RED II) is promising as regards achieving a higher share of cross-border 
projects in the form of  joint and hybrid projects. Cooperation mechanisms that also provide 
for  statistical  transfers  or  joint  projects63  could  provide  landlocked  Member  States  with  an 
opportunity to support investment in offshore renewable energy. 

The  Commission  believes  that  clear  guidance  on  the  issue  of  proper  cost-benefit  sharing 
between  stakeholders  (including  basic  cooperation  setup,  cost-benefit  sharing  and  a 
cooperation agreement), is key to ensure that the Member States involved draw a net benefit 
from acting jointly. 

Key actions  

  The Commission  clarifies the regulatory framework, in particular on offshore bidding 
the  market  guidance  staff  working  document 

in 

zones  for  hybrid  projects, 
accompanying this strategy; 

  The Commission will propose amending legislation64 on the allowed use of congestion 
income  to  provide  an  option  for  Member  States  to  give  a  more  flexible  allocation  of 
congestion income with regard to offshore hybrid projects (2022); 

  The  Commission  will  task  the  Electricity  Stakeholder  Committee65  to  prepare 
amendments  to  the  Grid  Connection  Network  codes  for  offshore  high-voltage  direct 
current grids (2021); 

61 Directive (EU) 2018/2001, OJ L 328, 21.12.2018 
62 Directive (EU) 2018/2001, OJ L 328, 21.12.2018. 
63 Article 6, Article 7 and Article 11 of the recast Renewables Energy Directive. See also 
https://ec.europa.eu/energy/topics/renewable-energy/renewable-energy-directive/cooperation-mechanisms_en. 
64 Article 19 of the Electricity Regulation (EU) 2019/943, OJ L158, 14.6.2019 

16 

 
 
 
                                                            
  The Commission will ensure that the revision of the State aid guidelines on energy and 
environmental  protection  provides  a  fully  updated  and  fit-for-purpose  enabling 
framework  to  cost-effectively  deploy  clean  energy,  including  renewable  offshore 
energy (by end 2021).  

  The  Commission  will  propose  a  guidance  on  cost-benefit  sharing  for  cross  border 

projects (2021). 

4.4 Mobilising private-sector investment in offshore renewables: the role of EU funds  

The  investment  needs  for  the  large-scale  deployment  of  offshore  renewable  energy 
technologies by 2050 are estimated to be almost EUR 800 billion, around two thirds to fund 
the  associated  grid  infrastructure  and  a  third  for  offshore  generation66.  This  means  that  a 
significantly larger amount of capital will have to be channelled to this sector than has been so 
far. Annual investment in onshore and offshore grids in Europe over the decade to 2020 have 
amounted  to  around  EUR 30  billion  but  need  to  increase  to  above  EUR 60  billion  in  the 
coming decade, and then increase further after 203067.  

Private capital is expected to provide the bulk of this investment. The EU sustainable finance 
taxonomy  will  guide  investment  in  these  activities  in  line  with  our  long-term  ambitions. 
However,  efficient  and  well-targeted  use  of  EU  support  will  also  play  a  strategic  catalytic 
role.  Grid  development  is  a  precondition  in  every  sea  basin  to  enable  the  energy  generated 
offshore to reach customers. For mature offshore energy technologies, such support can help 
mitigate market failure, for instance by addressing the risk of launching more projects and of 
a larger size, or help reduce capital costs, usually very high in these type of projects. For less 
mature technologies, or projects still at an early stage, EU public funding will be crucial for 
market  creation,  by  bringing  on  board  more  private  actors,  improving  competitiveness, 
reducing  uncertainties,  bringing  down  costs  and  accelerating  progress  on  early  deployment 
and commercialisation. 

The  new  InvestEU  programme  can  provide  support  and  guarantees  for  emerging 
technologies  to  accelerate  private  investment  through  its  different  windows,  for  example 
supporting  research  and  innovation,  infrastructure  development  and  strategic  industries.  As 
capital costs make up a significant share of total investment costs for new offshore projects, 
de-risking  and  reducing  the  cost  of  capital  can  have  an  important  positive  effect  for 
mobilising  private  capital  and  incentivising  new  investment.  Lending  by  the  European 
Investment  Bank  (EIB)  can  play  a  crucial  role  alongside  private  investment  in  offshore 
renewable energy.  

Furthermore, the released funds from the cancelled projects of the NER 300 first call will be 
reinvested  through  existing  financial  instruments.  This  allows  to  leverage  additional  private 
investments in low-carbon innovation, including in offshore renewable energy. 

65 https://www.acer.europa.eu/en/Electricity/FG_and_network_codes/Pages/European-Stakeholder-
Committees.aspx 
66 Financing of offshore hybrid assets in the North Sea (Guidehouse, 2020-11) 
https://data.europa.eu/doi10.2833/269908 
67 Impact Assessment of the Climate Target Plan https://eur-lex.europa.eu/resource.html?uri=cellar:749e04bb-
f8c5-11ea-991b-01aa75ed71a1.0001.02/DOC_1&format=PDF 

17 

 
 
 
 
                                                                                                                                                                                          
In  the  context  of  the  NextGenerationEU  recovery  plan,  the  Recovery  and  Resilience 
Facility  (RRF)  of  EUR 672.5  billion  channels  37%  to  the  green  transition  and  thus,  could 
support reforms and investments in offshore renewable energy under the ‘Power up’ flagship 
initiative.  

Funding under the Recovery and Resilience Facility will need to be committed by end of 2023 
It  is  therefore  crucial  for  the  Member  States  to  be  able  to  present  a  pipeline  of  mature 
projects, in close cooperation with companies already preparing to invest. The Commission 
stands  ready  to  provide  technical  expertise  and  capacity  building  to  the  Member  States 
through  the  Technical  Support  Instrument  and  to  project  promoters  under  the  InvestEU 
Advisory Hub. Moreover, funding under the RRF can support offshore renewable energy also 
in terms of investments in the upgrading port infrastructures as well as grid connections. It 
can  also  support  associated  reforms  needed  to  facilitate  the  deployment  of  offshore 
renewable  energy  and  integration  to  energy  systems  (e.g.  through  streamlined  permitting 
procedures, grids and maritime spatial planning and offshore renewable energy auctions).  

EU  instruments  can  also  help  mobilizing  much  needed  funding  to  promote  cross-border 
renewable energy solutions and joint projects. The Connecting Europe Facility (CEF), with 
its new facility for cross-border renewables generation, provides incentives for cooperation 
in the field of renewable energy. It can be used to map potential offshore development sites, 
fund the necessary studies and exceptionally to fund construction works, for projects between 
two or more Member States. An example could be the joint development of a floating wind 
farm  to  support  European  technology  leadership.  The  CEF  infrastructure  facility  has 
already funded offshore energy projects, such as the North Sea Wind Power Hub project, and 
could  in  the  future  focus  more  on  cross-border  offshore  grid  infrastructure  development, 
including hybrid and meshed projects.  

Furthermore,  the  renewable  energy  financing  mechanism,  operational  on  1 January  2021, 
can offer ways of sharing the benefits of offshore energy projects with Member States that do 
not  have  a  coastline.  All  Member  States,  including  landlocked  Member  States,  can  make 
financial contributions to the mechanism, setting out their preference for the type of projects 
and technology they would like to support, including offshore projects. These Member States 
will in turn receive statistical benefits68 from the renewable energy produced by the projects 
and would practically share the renewable energy potential of the Member States that host the 
project.  

This  mechanism  can  provide  support  for  a  wide  range  of  projects,  from  small-scale 
installations and innovative technologies (such as floating offshore wind parks) to large-scale, 
cross-border  and  hybrid  projects.  It  can  include  grants  for  the  renewable  generation 
component of projects focused on generating renewable fuel from ‘Power-to-X’, projects on 
energy  production  and  storage,  and  projects  that  receive  other  forms  of  support  for 
infrastructure or grid connection. The Commission plans to launch the first EU-wide tender 
for projects in 2021.   

68 For example, if a landlocked MS pays into the mechanism, and then the mechanism supports offshore wind 
park in another MS, then the contributing MS will count the renewable energy produced by the projects in the 
host MS as if this energy was produced in the contributing MS. Practically, the contributing landlocked MS will 
increase statistically its % of renewable energy in the energy consumption (hence – statistical benefit) even 
though this energy was produced or consumed in another country. This will help the MS reach its target for share 
of renewables through projects located in another MS. 

18 

 
 
                                                            
Horizon  Europe  and  the  Innovation  Fund  will  provide  support  for  research,  innovation  and 
demonstration  projects  underpinning  the  future  development  and  deployment  of  innovative 
offshore  energy  technologies  in  Europe.  In  particular,  under  Horizon  Europe,  it  will  be 
possible  to  support  the  development  and  testing  of  new  and  innovative  offshore  renewable 
energy  technologies,  components  and  solutions69.  The  Innovation  Fund  can  support  the 
demonstration  of  innovative  clean  technologies  at  commercial  scale,  such  as  ocean  energy, 
new  floating  offshore  wind  technologies  or  projects  to  couple  offshore  wind  parks  with 
battery  storage  or  hydrogen  production.  Support  could  be  combined  with  InvestEU  or  CEF 
funding  to  increase  the  viability  of  such  innovative  projects  and  to  finance  adjacent 
infrastructure.  Member  States  eligible  for  the  Modernisation  Fund70  can  make  use  of  its 
resources to develop their offshore renewable energy industry.  

Key actions 

  The  Commission  will  encourage  Member  States  to  include  reforms  and  investments 
related  to  renewables  deployment,  including  offshore,  in  their  national  recovery  and 
resilience  plans,  under  the  ‘Power  up’  flagship  of  the  Recovery  and  Resilience  Facility 
(2020-2021).  

  The  Commission  will  facilitate  the  development  of  cross-border  cooperation  projects, 
including  interconnections,  under  the  new  Connecting  Europe  Facility  and  under  the 
renewable  energy  financing  mechanism,  including  through  a  blending  facility  within 
InvestEU (as of 2021);  

  The  Commission,  the  EIB  and  other  financial  institutions  will  work  together  to  support 
strategic  investment  in  offshore  energy  through  InvestEU,  including  for  higher  risk 
investments that advance EU technological leadership (as of 2021). 

4.5 Focusing research and innovation on supporting offshore projects 

Boosting research and innovation is an important precondition for the large-scale deployment 
of offshore renewable energy. Currently, investments in clean energy R&I mainly come from 
the private sector. In recent years, the EU has invested an average of nearly EUR 20 billion a 
year  in  clean  energy71,  with  business  contributing  an  estimated  77%,  national  governments 
17% and EU funds 6%. For wind energy, the private sector plays even bigger role, providing 
around  90%  of  the  EU’s  R&I  funding  in  onshore  and  offshore  wind72.  R&I  investments  in 
wind energy in Europe are highly concentrated in Germany, Denmark and Spain73. 

Public R&D&I investments in the wind energy value chain have played an important role in 
enabling  the  sector  to  develop,  scale  up  and  move  to  deployment.  R&D  has  grown  from 

69 See section 4.5. 
70 Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. 
71 SETIS Research & Innovation data, according to JRC methodology: Fiorini A., Georgakaki A., Pasimeni F., 
Tzimas E. (2017) Monitoring R&I in Low-Carbon Energy Technologies, JRC105642 and Pasimeni F., Fiorini 
A., Georgakaki A. (2019) Assessing private R&D spending in Europe for climate change mitigation technologies 
via patent data, World Patent Information. Available at: https://setis.ec.europa.eu/publications/setis-research-
innovation-data 
72 JRC, Low Carbon Energy Observatory, Wind Energy Technology Market Report, European Commission, 
2019, JRC118314. 
73 JRC, Low Carbon Energy Observatory, Wind Energy Technology Market Report, European Commission, 
2019, JRC118314. 

19 

 
 
 
 
 
                                                            
EUR 133  million  in  2009  to  EUR 186  million  in  201874.  Over  the  last  10  years,  EU  R&I 
programmes75  granted  about  EUR 496  million  to  offshore  wind,  putting  the  strongest 
emphasis  on  offshore  technology  followed  by  floating  offshore  wind,  new  materials  and 
components, and maintenance and monitoring76.  

Current  R&I  priorities  in  offshore  wind  revolve  mainly  around  wind  turbine  design, 
infrastructure  development,  circular  advanced  materials  and  digitalisation.  Other  recent 
innovations target the logistics/supply chain, e.g. developing wind turbine gearboxes compact 
enough to fit into a standard shipping container77 and applying circular economy approaches 
to the life cycle of installations. Harmonising technical standards can help achieve scale and 
efficiency in this regard. Further innovations and trends that are expected to increase the most 
over the next 10 years include superconducting generators, advanced tower materials and the 
added  value  of  offshore  wind  energy.  As  offshore  wind  energy  is  by  now  a  mature 
technology, future R&I should focus on the optimisation of existing manufacturing processes 
in sectors such as large-scale blade production. 

Floating  applications  seem  to  become  a  viable  option  for  EU  countries  and  regions  with 
deeper  seas  in  the  Atlantic,  the  Mediterranean  and  the  Black  Sea78:  the  technology  for 
floating  offshore  wind  in  deep  waters  and  harsh  environments  further  away  from  shore  is 
progressing steadily towards commercial viability79, with different prototypes and small-scale 
projects already operating, continuing to create business opportunities for EU operators. 

Between 200780 and 2019, total R&D expenditure in Europe on ocean wave and tidal energy 
amounted  to  EUR 3.84  billion,  most  of  it  (EUR 2.74  billion)  from  private-sector  sources81. 
Over  the  same  period,  national  R&D  programmes  contributed  EUR 463  million  to  develop 
wave and tidal energy and EU funding82 contributed EUR 493 million. EU support can be key 
to incentivise further national-level public and private-sector funding to de-risk ocean energy 
investment,  to  promote  further  testing  and  to  reduce  the  costs  and  bridge  the  gap  between 
demonstration  and  deployment.  On  average,  EUR 1  billion  of  public  funding  (EU  and 
national) leveraged EUR 2.9 billion of private-sector investment over this period.  

Tidal  technologies  can  be  considered  as  being  at  the  pre-commercial  stage  and  most  wave 
energy technologies are still at the R&D stage. Floating PV has experienced industrial-scale 
deployment in natural and artificial inland waterbodies and may have promising potential in 
coastal  and  near-shore  areas.  Algae  are  also  a  promising  source  of  sustainable  biofuels  that 
merit further R&I. 

74 ICF, commissioned by DG GROW — Climate neutral market opportunities and EU competitiveness study 
(Draft, 2020). 
75 Horizon 2020 and its predecessor FP7, for period 2009-2019. 
76 JRC Wind Energy Technology Development Report (2020). 
77 SET-Plan, Offshore Wind Implementation Plan (2018). 
78 Floating offshore wind farms are suited for depths between 50 and 1000 metres. 
79 UNEP & Bloomberg NEF, Global trends in renewable energy investment, 2019. 
80 Start of the SET plan initiative. 
81 Private investments are estimated from the patent data available through Patstat. Sources: Fiorini, A., 
Georgakaki, A., Pasimeni, F. and Tzimas, E., (2017) Monitoring R&I in Low-Carbon Energy Technologies, 
JRC105642, EUR 28446 EN and Pasimeni, F., Fiorini, A., and Georgakaki, A. (2019). Assessing private R&D 
spending in Europe for climate change mitigation technologies via patent data. World Patent Information, 59, 
101927. 
82 Including the European Regional Development Fund (ERDF) which has also co-financed Interreg projects. 

20 

 
 
                                                            
The increasing amount of energy generated offshore by these offshore technologies must also 
be  supported  by  further  development  of  innovative  infrastructure  and  grid  technologies. 
R&I  should  therefore  support  new  approaches  to  connect  these  infrastructures  in  a  meshed 
grid, taking into account efficiency increases by reducing losses.  

For  long  distance  transmission  of  the  electric  power  generated,  high-voltage  direct  current 
(HVDC)  is  an  efficient  and  economical  alternative  to  alternate-current  transmission.  The 
latest  HVDC  technologies  can  interconnect  windfarms  and  grids  to  dispatch  the  offshore 
energy generated to the right market, with the necessary grid security and resilience requisites. 
However,  deployment  at  large-scale  is  not  straightforward  due  to  the  high  cost,  different 
configuration  testing  and  validation  among  different  operators,  and  interoperability  issues 
among different vendors’ converters. Therefore, by providing support under Horizon Europe 
for  the  design  and  test  phase  of  HDVC  systems,  the  Commission  will  steer  towards  the 
installation of the first multi-vendor multi-terminal HVDC system in Europe by 2030. 

It  will  be  important  to  facilitate  the  testing  of  new  technologies  for  future  offshore  grids, 
flexibility,  storage  (Power-to-X),  batteries  and  digitalisation  for  the  effective  integration  of 
offshore  wind  farms  into  the  energy  system,  and  to  develop  enablers  and  carriers  such  as 
hydrogen  and  ammonia.  In  the  medium  to  longer  term,  on-site  conversion  of  renewable 
electricity  into  hydrogen  and  its  shipping  or  on-site  fuelling  will  become  relevant.  R&I 
support  provided  for  under  the  batteries  action  plan,  the  hydrogen  strategy  and  the  related 
alliances are therefore also key in this regard.  

Research  on  the  environmental  impacts  of  offshore  technologies  is  also  needed,  to  fill  data 
and information gaps. Improving knowledge and modelling capacities will facilitate both the 
identification of future areas for deployment and the consenting process. 

Future  action  must  address  these  R&I  challenges  and  also  the  opportunities  inherent  in 
developing and deploying offshore energy. They include infrastructure integration, circularity 
by design, critical raw material substitution, reducing the environmental impacts of offshore 
technologies, and skills and job creation.  

The  Commission  will  explore  how  technology  development  in  offshore  renewable  energy 
generation and infrastructure can be supported and embedded sustainably, including through 
the Research Mission on Healthy Oceans, Seas, Coastal and Inland Waters. 

Key actions:  

  Under the first work programme of Horizon Europe for 2021 and 2022, the Commission 

proposes to:  

o  support  cooperation  between  TSOs,  manufacturers  and  offshore  wind  developers 

to start a large-scale HVDC-grid demonstration project in 2022; 

o  develop  new  wind,  ocean  energy  and  solar  floating  technology  designs,  for 

o 

example through Horizon Europe   
improve  industrial  efficiency  across  the  value  chain  of  offshore  wind  energy, 
involving digital technologies using data-driven approaches and Internet of Things 
devices  

o  systematically  integrate  the  principle  of  ‘circularity  by  design’  into  renewables 

research & innovation. 

  The Commission will review SET Plan targets on ocean energy and offshore wind and the 

implementation agendas, and launch an additional SET Plan group on HVDC; 

  The  Commission  will  study  how  technology  development  in  offshore  energy  generation 

21 

 
 
 
and  infrastructure  can  be  embedded  sustainably  in  socioeconomic  ecosystems  and  the 
marine  environment,  for  example  by  researching  cumulative  impacts  and  social 
awareness. 

  The Commission will work with Member States and regions, including islands, to make 
use of available funds in a coordinated manner for ocean energy technologies in order to 
achieve a total capacity of 100MW across the EU by 2025 and around 1 GW by 2030. 

4.6 

A stronger supply and value chain across Europe  

To achieve the upscaling of capacity to reach 300-40 GW of offshore renewable energy, with 
maximum benefits for the EU economy, the offshore renewable energy supply chain must be 
able  to  ramp  up  its  capacity  and  sustain  higher  installation  rates.  Corrosion  resistant 
materials,  wind  and  ocean  turbine  manufacturers,  tower,  foundation,  floating  devices  and 
cable  suppliers  will  all  need  investments  to  expand  their  production.  Some  ports  will  need 
upgrading  and  new  vessels  must  be  built  and  put  into  operation.  For  example,  only  a  few 
European  seaports  are  currently  suitable  for  offshore  energy  assembly,  manufacturing  and 
servicing. According to industry estimates, overall investment of around EUR 0.5 to 1 billion 
is needed to upgrade port infrastructure and vessels. Hundreds of component suppliers, many 
of which are SMEs, will also need to upgrade.  

Policies  on  the  demand  side,  such  as  long-term  planning,  regional  cooperation  and  a  clear 
regulatory  framework  can  provide  signals  and  indicate  the  future  volume  estimates  that 
industry and investors need to make anticipatory investments and further industrialise their 
manufacturing capacity. 

At the same time, supply-side policies may also be needed. The European offshore renewable 
energy supply chain is dynamic and highly competitive, but it will face a challenge in scaling 
up and maintaining its excellence in a context of increasing competition on global markets. In 
the  communication  entitled  ‘A  new  industrial  strategy  for  Europe’83,  the  Commission 
highlighted the need for a more strategic approach to renewable energy industries and the 
supply chains underpinning them, to maintain Europe’s global leadership and excellence.  

Thus,  the  Commission  will  enhance  the  Clean  Energy  Industrial  Forum  on  Renewables, 
established  by  the  ‘Clean  energy  for  all  Europeans’  package,  to  bring  together  industry 
leaders,  industrial  clusters,  companies  and  service  providers,  TSOs,  investors,  the  civil 
society,  the  research  community  and  expand  it  to  include  national  and  regional  authorities. 
The Forum would assist in the competitiveness assessment of the industry84 and help identify 
critical supply chain segments and associated investments that need to be scaled up to ensure 
that EU renewables deployment targets can be met.  

Within  the  Forum,  a  dedicated  working  group  will  be  set  up  on  offshore  renewable 
energy to identify and propose solutions to barriers to the rapid scale up of a pan-European 
offshore  renewable  energy  supply  chain,  to  facilitate  cooperation  and  to  pool  expertise 
between  offshore  energy  technologies  and  across  the  different  renewable  energy  supply 
chains,  in  compliance  with  competition  rules.  The  Offshore  Renewable  Energy  Working 
Group will help track progress and advance work on the action points in this strategy. Given 

83 https://ec.europa.eu/commission/presscorner/detail/en/ip_20_416 
84 See COM(2020) 953 

22 

 
 
 
 
                                                            
the growing trend to develop renewable energy installations in their portfolios, the traditional 
oil  and  gas  offshore  industry  could  be  interested  in  joining  the  platform,  bringing  in 
knowledge, skills and installations.  

The skills challenge 

A large-scale increase in the deployment of offshore renewable energy and the related value 
chain should benefit a large number of regions and territories. It may provide an opportunity 
for the regions most affected by the transition to a climate-neutral economy to diversify their 
economies,  ranging  from  carbon-intensive  and  coal  regions,  regions  where  gas  and  oil 
offshore  industry  needs  to  reconvert,  to  peripheral  and  outermost  regions.  It  could  offer 
alternative  high  quality  employment  opportunities  to  skilled  workers  affected  by  the 
transition.  Maintaining  offshore  energy  infrastructure  could  also  have  balancing  economic 
effects  in  locations  with  highly  seasonal  industries  (tourism,  fishing,  etc.)  by  providing  a 
stable and predictable work stream for local workers and for SMEs all year round. 

Reaching  this  potential  means  overcoming  a  number  of  challenges  in  terms  of  the  labour 
force,  its  skills,  including  information  and  communication  technology  literacy,  and  having 
these skills available in the right locations. The sector already has difficulties recruiting and 
training workers with the right skills. 17-32% of companies are experiencing skills gaps, and 
in technical occupations, 9-30% are experiencing skills shortages. Moving forward, Member 
States  will  need  to  support  actions  under  the  “European  Skills  Agenda  for  sustainable 
competitiveness, social fairness and resilience” and design and shape more education and 
training schemes targeting the offshore renewable energy sector in line with their expected 
development  targets85.  In  2019,  only  12  EU  countries  have  such  programmes  in  place86, 
which lack even in some countries with significant offshore industry potential. Job creation is 
expected  to  be  significant,  particularly  for  researchers,  engineers,  scientists  and  engineering 
technicians.  Member  States  can  use  the  Cohesion  Policy  Funds,  European  Social  Fund 
Plus and the Just Transition Mechanism to fund such programmes.  

Technical  and  academic  educational  programmes  in  Member  States  should  factor  in  the 
increasing needs by 2050 to attract young workers with the right profiles to jobs in offshore 
renewable energy. Centres of Vocational Excellence can help meet the need for reskilling by 
bringing  together  a  wide  range  of  local  partners,  such  as  vocational  education  and  training 
providers  (at  both  secondary  and  tertiary  levels),  employers,  research  centres,  development 
agencies, and employment services, to develop skills ecosystems. 

A circular economy approach 

Decommissioning, reusing and recycling wind turbine components, in particular blades made 
of  composite  material,  is  another  challenge  to  address.  Research  on  recyclability  and  the 
impact  on  design  is  still  rather  fragmented  and  often  based  on  niche,  non-generic 
applications.  It  is  necessary  to  integrate  the  principle  of  ‘circularity  by  design’  into 
renewables  research  &  innovation  more  systematically.  This  will  mean  improving  existing 
technologies  (and  developing  new  technologies),  bearing  in  mind  both  production  process 
efficiency and the longer life-time of installations and the ‘end of life’ of components. This 

85 Only 5% of available education and training programmes directly cover offshore renewable energy. There are 
major gaps in the fields of electro-mechanics, assembling, diving, metalworking and health & safety. 
86 Source: project MATES (Maritime Alliance for fostering the European Blue Economy through a Marine 
Technology Skilling Strategy), ‘Baseline report on present skills gaps in shipbuilding and offshore renewables 
value chains’ www.projectmates.eu 

23 

 
 
                                                            
will  increase  the  value  retention  of  products  and  services  in  the  renewable  energy 
manufacturing industry and reduce pressure on natural resources.  A thorough  assessment of 
the materials used for offshore renewable technologies is needed. This should cover not only 
cost  and  toxicity  aspects  but  also  issues  such  as  material  reuse  and  recyclability,  sourcing 
constraints,  and  increased  security  of  supply  of  critical  materials.  Reusing  and  recycling 
practices associated with onshore wind  turbines should be explored, as they will need to  be 
decommissioned in the near future. 

The EU renewable offshore value chain is underpinned by a global supply chain, relying on 
imported  raw  materials  and  components  for  production  (rare  earth  for  permanent  magnets, 
steel  and  composite  materials).  As  demand  for  those  materials  is  projected  to  increase  (for 
instance,  rare  earths  used  in  permanent  magnets  could  increase  tenfold  by  205087)  it  is 
necessary  to  focus  on  how  to  ensure  undistorted  supply,  reduce  dependency  and  shorten 
supply  chains.  The  new  European  Raw  Materials  Alliance88  should  help  increase  supply 
chain resilience. Improving the circularity of the full supply chain will play an important role 
in mitigating increased dependencies.  

EU industry and global markets 

The  EU  offshore renewable energy industry  is  highly competitive  on  the  global  market  and 
has  a  strong  export  capacity,  with  China  and  India  being  the  main  global  competitors. 
Between 2009 and 2018, the EU trade balance remained positive and it continues to increase. 
In 2018, EU companies accounted for 47% of global exports. Eight out of ten global exporters 
are EU countries. The global market thus represents a significant commercial opportunity for 
EU industries. In Asia, offshore wind capacity is expected to reach around 95 GW by 2030 
(out  of  a  projected  global  capacity  of  almost  233  GW  by  2030)89.  Nearly  half  of  global 
offshore  wind  investment  in  2018  was  made  in  China90.  The  global  market  for  new 
technologies  such  as  floating  wind,  and  ocean  energy  in  the  future,  can  also  provide 
promising new outlets for EU industry.  

International partnerships 

Through Green Deal diplomacy, the EU is actively engaged with its international partners to 
help  create  a  favourable  environment  to  develop  offshore  renewable  energy, including  in 
low-income  countries  and  emerging  markets.  This  support  could  cover  the  regulatory 
framework,  technical  standards,  local/national  trade  associations,  capacity  building  for 
connection and grid management, and professional training as well as de-risking investments 
with guarantees such as the European Guarantee for Renewable Energy under the European 
Fund for Sustainable Development (EFSD)91. 

The EU and its partner countries are also committed to achieve the Sustainable Development 
Goals  (SDGs),  including  SDG7,  and  are  therefore  supporting  the  deployment  of  affordable 

87 European wind generator production depends on imports of graphite (of which 48% comes from China), 
cobalt (of which 68% comes from the Democratic Republic of Congo), lithium (of which 78% comes from 
Chile) and rare earths (of which nearly 100% come from China). Source: European Commission’s 2020 
Strategic Foresight Report (https://ec.europa.eu/info/strategy/priorities-2019-2024/new-push-european-
democracy/strategic-foresight/2020-strategic-foresight-report_en). 
88 COM(2020) 474 final. 
89 GWEC 2020, Global Offshore Wind Report, 2020. 
90 IRENA, Future of wind (2019, p. 52). 
91 Regulation (EU) 2017/1601 of the European Parliament and of the Council of 26 September 2017 establishing 
the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD Guarantee Fund 

24 

 
 
                                                            
and renewable energy across the globe. In line with the EU policy objectives to support the 
clean energy system transition in its partner countries, offshore renewable energy will play an 
important  role.  This  may  turn  into  a  win-win  situation  for  both  the  EU  offshore  renewable 
energy industry which could enter into new important markets but also for partner countries 
which would see the share of their renewable energy grow and increase their knowledge and 
capacity in this sector.  

The EU is ready and willing to share its industry-leading experience and to cooperate with 
third countries in different forms. This can include exchanging best practices and regulatory 
approaches and developing joint projects with neighbouring countries, depending on the level 
of  alignment  of  the  regulatory  frameworks  and  on  coherence  with  EU  policy  priorities  in 
terms of environmental and other standards.  

Member  States  and  industry  should  be  actively  engaged  in  promoting  EU  standards  at 
bilateral and international level, which includes active engagement in international standard-
setting bodies. 

As  a  technology  developer  (including  for  grid  technology),  the  EU  must  take  a  more 
resolute  approach  to  promoting  its  interests  through  trade  policy.  Increasingly,  some 
markets  are  imposing  local  content  requirements  or  adopting  other  discriminatory  or 
otherwise trade restrictive measures in order to promote domestic industries. The Commission 
will  take  an  active  role  in  promoting  regulatory  convergence  and  the  dissemination  of 
international  standards,  while  opposing  the  unjustified  introduction  of  local  content 
requirements  and  other  trade  barriers  in  third  countries.  Free  trade  agreements  and 
international  collaboration  should  strive  for  undistorted  trade  and  investment  and  improve 
market access, but also factor in the need for the convergence of norms and standards, flexible 
electricity markets and fair grid access in third countries. In the case of market access barriers, 
the  Commission  will  enforce  the  EU  rights  under  international  trade  agreements  by  making 
full use of legal remedies at its disposal, including multilateral and bilateral dispute settlement 
mechanisms. 

Key actions 

  The  Commission  and  ENTSO-E  will  promote  standardisation  and  interoperability 
among  converters  of  different  manufacturers  (to  be  operational  by  2028);  The 
Commission,  Member States and  industry will  jointly  work to  promote EU standards 
internationally; 

  The  Commission  will  enhance  the  Clean  Energy  Industrial  Forum  on  Renewables  to 
foster the development of the renewables value chain, and will set up within the Forum 
a dedicated working group on offshore renewable energy (2021);  

  The  Commission  will  encourage  Member  States  and  regions  to  use  the  2021-2027 
Cohesion  Policy  Funds, including  the European Social  Fund Plus,  as well as the Just 
Transition  Mechanism  where  relevant,  to  support  investment  in  renewable  offshore 
energy 
roll  out 
reskilling/upskilling schemes;  

to  boost  economic  diversification,  create  new 

jobs  and 

  The  Commission  will  support  competent  national  and  regional  authorities  in  creating 
and delivering specific education and training programmes, including at technical and 
tertiary levels, to develop a skill pool in offshore energy and to attract young workers 
with the right profiles and re/upskilled workers to offshore renewable energy jobs, also 
through actions under the Skills Agenda. 

25 

 
 
 
  The  Commission  will  promote  market  access  in  third  countries,  including  by 
addressing barriers affecting offshore renewable projects and making full use of legal 
remedies.  

  The  Commission  will  facilitate  the  development  of  new  markets  for  offshore 
renewables and strengthening existing ones through exchanging on policy frameworks 
standards and sector developments in the EU’s energy dialogues with partner countries 
(on-going); 

  The  Commission  will  carry  out  an  analysis  of  costs  and 

the 
decommissioning of offshore installations, with a view to assessing whether, both for 
the dismantling of the existing installations and for future decommissioning activities, 
EU-wide  legal  requirements  are  needed  to  minimise  environmental,  safety,  economic 
impacts. 

impacts  of 

5.  Conclusions 

Offshore  renewable  energy  is  one  of  the  most  promising  routes  to  increase  future  power 
generation in the coming years in a way that meets Europe’s decarbonisation objectives and 
expected rise in electricity demand in an affordable manner. Europe’s oceans and sea basins 
hold a vast potential, which can be harnessed in a sustainable and environmentally sound way, 
complementing other economic and social activities.  

This  Strategy  sets  out  the  scaling  up  of  offshore  renewable  energy  and  its  use  as  an  EU 
priority.  Offshore  renewable  energy  potential  is  present,  in  different  forms,  in  all  European 
oceans and sea basins, including islands and outermost regions. Its development would have 
positive industrial, economic and social impacts spread across the EU and its regions. 

For  offshore  wind  fixed-bottom  and  floating  installations,  the  challenge  is  to  create  the 
optimum  environment  to  maintain  and  accelerate  the  momentum  created  in  the  North  Sea, 
extending best practice and experience to other sea basins, starting from the Baltic Sea, and 
supporting  global  expansion.  For  other  technologies,  the  challenge  is  to  mobilise  sufficient 
and  well-targeted  funding  for  research  and  demonstration,  to  bring  down  costs  and  to  bring 
these technologies to market in time to make a difference.  

Making  a  success  of  offshore  renewable  energy  can  yield  great  benefits  for  Europe,  it  can 
ensure  the  EU  delivers  a  sustainable  energy  transition,  and  bring  the  Member  States  on  a 
realistic  path  to  zero  pollution  and  climate  neutrality  by  2050.  It  can  also  make  a  major 
contribution to the post COVID-19 recovery, as a sector where Europe’s industry has world 
leadership and which is forecast to grow exponentially in the coming decades. 

Achieving the scale up proposed by this strategy will require the collaboration of all parties 
concerned:  Member  States,  regions,  EU  citizens,  social  partners,  NGOs  and  all  sea  users, 
notably  the  offshore  renewables  industry  and  the  fisheries  and  aquaculture  sectors.  In  this 
spirit,  the  Commission  will  organise  in  2021  a  High  Level  European  Offshore  Renewable 
Conference,  bringing  together  members  of  the  existing  regional  cooperation  formats,  to 
promote exchange of best practices and discuss common challenges.  

The Commission invites the EU institutions and all stakeholders to discuss the policy action 
proposed in this strategy and to join forces in taking this action forward without delay.  

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