In Week 8 of Tamarindo Diaries, Adam Barber, Managing Director of Tamarindo Group, explores the good, the bad, and the ugly of European offshore wind.
This week we’ve very much seen the good, the bad, and the ugly when it comes to European offshore wind.
First the good news: Total is buying into Seagreen and MHI Vestas have secured a whopping 1.1GW turbine deal. Projects in France are getting going too, with a big Siemens Gamesa order secured.
The bad news: there’s a refusal of Thanet extension in the UK, there’s delayed decision making on a 4.2GW duo in UK waters, and there’s increasing speculation around the viability of Johnson’s 40GW target by 2030.
And then there’s the ugly.
The spectre of negative bids in Germany is a real risk to the market, and that comes despite the fact that Germany has recently set a 40GW target by 2040. WindEurope are rightly up in arms about this and are very much leading the charge in trying to turn this around.
The point? There’s huge potential for offshore wind to be a catalyst for growth within the European Union, and the €750 billion recovery plan is a testament to this. However, we’re seeing some amber warning lights flashing in key markets - most notably the UK and Germany - and we need to watch carefully what happens next.
It very much is the good, the bad and the ugly of European offshore wind. Make of it what you will.