The offshore wind industry is confronting significant economic and political challenges that threaten global renewable energy targets. Rising interest rates, supply chain constraints, and shifting political support have led to cancelled projects and failed auctions across multiple markets.
Industry Faces Perfect Storm of Economic Pressures
The global offshore wind sector is navigating turbulent waters as economic pressures and political uncertainty threaten development timelines and government targets. According to reports, the industry’s rapid growth during the low-interest rate environment of the 2010s has given way to significant challenges, with 24.1 gigawatts of offshore wind capacity and offtake agreements cancelled since 2023 alone.