Vattenfall, a Swedish renewable energy developer, recently announced it will stop developing a large offshore wind farm in the North Sea off the UK, citing soaring development costs. This has sent shockwaves through the industry and refocused attention on the issue of supply chain costs for offshore wind in Europe. The industry is urging European governments to act swiftly in order to meet stated climate targets.
Supply chain cost issues have long plagued the offshore wind industry in Europe, not just in the UK but also in countries like Germany and the Netherlands where offshore wind development has been hampered. Industry experts believe Vattenfall’s move rings alarm bells that the UK government urgently needs to address the inflationary pressures facing the offshore wind industry and adjust policy frameworks to safeguard development.
