The UK’s offshore wind sector is at a critical juncture, with the nation’s Clean Power 2030 (CP30) targets hanging in the balance. Offshore Energies UK’s (OEUK) 2025 Wind Insight report pulls no punches, warning that without immediate and substantial action, the UK risks falling short of its ambitious offshore wind goals. The stakes are high: the country needs to secure between 43 and 51 GW of offshore wind capacity by 2030 to decarbonise its electricity supply and power the broader economy. Currently, the outlook is bleak, with projections suggesting that, without intervention, the UK may only achieve 35 GW by the end of the decade.
The report identifies several key challenges that must be addressed to get the UK back on track. Inflation and rising capital costs are squeezing the sector, while weaknesses in the supply chain threaten to stifle growth. To navigate these hurdles, OEUK calls for a multi-pronged approach that includes fast-tracking development plans, securing £15 billion annually in private investment, and investing £58 billion in grid infrastructure upgrades. These investments are not just about meeting targets; they are about positioning the UK as a global leader in wind power and driving domestic energy security.
The upcoming Contract for Difference auction in Allocation Round 7 (AR7) is a make-or-break moment. “AR7 needs to clear a record 8.4GW of offshore wind capacity to maintain the course toward CP30,” said Thibaut Cheret, OEUK’s Wind & Renewables Manager. This round must deliver a record-breaking 8.4 GW in new licences to keep the UK on track. Beyond 2030, Floating Offshore Wind (FOW) will play a pivotal role in the UK’s energy mix, with investment in FOW set to surpass fixed-bottom wind by 2033. This shift underscores the need for strategic planning and bold policy moves.
Offshore wind has already proven its mettle, contributing 17.2% of electricity generation in 2024. Its performance continues to outshine onshore wind, thanks to larger turbines and more consistent wind speeds at sea. However, the sector’s success is not guaranteed. The report emphasizes the need for a competitive UK energy supply chain and a balanced energy system that includes gas with carbon capture and future hydrogen power.
The implications of this report are far-reaching. If the UK can overcome these challenges and meet its CP30 targets, it could solidify its position as a global leader in renewable energy. Failure to do so could have significant economic and environmental repercussions. The path forward is clear: the UK must act decisively to secure the necessary investments, streamline development processes, and build a robust supply chain. The future of the UK’s energy landscape hangs in the balance, and the decisions made today will shape the sector for decades to come. The time for action is now.