The floating wind sector is facing a reality check, with developers scaling back their near-term growth expectations due to mounting investment hurdles. This stark assessment comes from Westwood Global Energy Group’s annual Floating Offshore Wind Survey, released at the Norwegian Offshore Wind’s Floating Wind Days on 21 May 2025. The findings, gathered from 166 global stakeholders, paint a picture of declining optimism, particularly among developers, who are now the least confident group in the industry.
The survey reveals a significant shift from the hopeful sentiment of 2024. This year, 63% of developers feel less positive about the sector’s prospects. Overall, 72% of respondents believe that global floating wind capacity will fall short of the 3GW mark by 2030. This is a stark contrast to the ambitious targets set by many countries and companies in recent years.
Several key factors are driving this caution. Financially, high upfront capital costs and investor hesitation around emerging technologies are major barriers. Non-financial obstacles include inadequate port infrastructure, lack of technology standardisation, and weak policy support. Despite progress in 2024 through new leasing rounds and subsidy schemes, the report concludes that the pace of delivery remains too slow.
Bahzad Ayoub, Manager – Offshore Wind at Westwood, underscores the need for a distinct approach to floating wind. “Floating wind must be treated as a distinct sector, not simply an extension of fixed-bottom wind,” Ayoub states. “The technology, timelines, and investment requirements are different – and government and industry action needs to reflect that.”
This news could significantly shape the development of the floating wind sector. It challenges the industry to address the specific needs and hurdles of floating wind, rather than treating it as an extension of existing technologies. This could spark debate about the need for targeted policy support, increased investment in infrastructure, and greater collaboration between stakeholders.
The findings also highlight the importance of standardisation in technology. As the sector matures, there will be a growing need for consistent design and manufacturing processes to drive down costs and increase investor confidence. This could lead to increased investment in research and development, as well as greater collaboration between technology providers.
Moreover, the report underscores the need for a more nuanced understanding of the sector’s unique challenges. This could lead to more targeted support from governments and investors, as well as a greater focus on the specific needs of the floating wind supply chain.
However, the news is not all doom and gloom. The survey also highlights the resilience of the sector, with many stakeholders still optimistic about its long-term potential. This could spark debate about the best ways to support the sector in the short term, while also building a strong foundation for future growth.
In the coming months, it will be crucial to watch how the industry responds to these findings. Will we see a renewed push for policy support and investment? Or will the sector struggle to overcome these hurdles? Only time will tell, but one thing is clear: the floating wind sector is at a crossroads, and the decisions made in the coming years will shape its future for decades to come.