The UK's offshore wind sector: turning strategy into reality
Chris Cowland, Head of Offshore Wind
| WSP
Can the UK deliver its world-leading 50GW offshore wind ambition by 2030? The answer depends on resilient supply chains, a skilled workforce, and policies that bolster investor confidence. As key decisions loom, government and industry must work together to succeed.
The UK's ambition to be a global leader in offshore wind remains a cornerstone of its energy transition, with a commitment to reach 50 gigawatts (GW) by 2030. This vision, now shaped by the government's Clean Power 2030 Action Plan (CP2030), promises a pathway to a cleaner, more secure energy system. However, achieving this goal is proving to be a high-wire act. While the sector has delivered impressive progress, it must now navigate a series of increasingly pressing challenges that threaten to slow its momentum—from supply chain and infrastructure constraints to refining policies that maintain investor confidence.
From ambition to action: The reality test
The UK can rightly boast of impressive progress, from the world-leading Dogger Bank wind farm to other large-scale projects. Yet, recent volatility within the Contracts for Difference (CfD) scheme has exposed serious vulnerabilities. The failure of Allocation Round 5 (AR5) in 2023, where no offshore wind projects decided to bid, was a significant wake-up call, demonstrating that market confidence cannot be taken for granted.
While Allocation Round 6 (AR6) showed a rebound, the stakes for the current round, AR7, are particularly high. With the application window now closed and results due early next year, industry body Offshore Energies UK (OEUK) has highlighted the need for a strong showing to keep the 2030 target on track. AR7 is more than just a standard auction, with new features such as dedicated auctions for offshore wind, longer 20-year CfD contracts, and targeted support for floating wind. Its outcome will be a critical indicator of the sector's health and the government's effectiveness in managing the energy transition.
The industrial rebirth: A promise under pressure
Beyond decarbonisation, offshore wind has long been framed as a potent engine for economic and regional regeneration. The 2025 Industrial Strategy and its Clean Energy Industries Sector Plan promise to turbocharge this growth, backed by the June 2025 announcement of a £1 billion public-private investment. Comprising £300 million from Great British Energy and leveraging a further £700 million from industry and The Crown Estate, this investment aims to bolster the domestic offshore wind supply chain. It aligns with efforts to anchor economic activity in industrial heartlands like Teesside and South Wales, an initiative also backed by a new Welsh offshore wind strategy launched in June 2025.
Despite these impressive growth projections, critical challenges remain. A recent report from the Energy Industries Council (EIC) has sharply focused on infrastructure bottlenecks, highlighting a painful shortage of specialist installation vessels and the multi-year delays plaguing port expansions. Without adequate infrastructure, the UK’s offshore wind ambitions could be delayed, leaving regional economies waiting.
Addressing these challenges is paramount. In June 2025, the UK Offshore Wind Supply Chain Investment Guide, published by OWIC and RenewableUK, offered a roadmap for progress. Outlining the support available to businesses, the guide aims to stimulate investment needed for infrastructure and domestic manufacturing, demonstrating a proactive effort by industry to solve these bottlenecks. Success, however, will depend on whether this initiative can effectively attract the necessary capital.
Supply chain and skills: addressing the bottlenecks
The skills gap is another major hurdle, compounding existing infrastructure bottlenecks. The Wind Industry Skills Intelligence Report from June 2025 highlighted the need for up to 94,000 offshore wind workers by 2030 to meet national targets, requiring not only new talent but also retraining workers from other sectors. In response, the government announced new requirements in late August 2025 for developers to fund training, aiming to build a 'Clean Power Army'. Initiatives like the Energy Skills Passport also aid in transitioning workers from the oil and gas industry. However, the success of these programs is critical, as a failure to deliver the required talent will leave new infrastructure idle, threatening the UK's ambitious targets.
Policy, politics, and the challenge of uncertainty
For investors, policy stability is the bedrock of long-term commitment. While the CfD mechanism has been a reliable framework, recent policy evolutions have introduced new anxieties. The Crown Estate's revised leasing model, which imposes higher upfront costs, has impacted the Levelised Cost of Electricity (LCoE), affecting project viability. The market has also been buffeted by wider global pressures, including as a result of US trade discussions, which has caused ramifications across the sector as whole.
Another significant policy element is the ongoing Review of Electricity Market Arrangements (REMA). Following consultation, the July 2025 REMA update ruled out zonal pricing, opting instead for a reformed national pricing model. The details of this reformed model still require clarification to ensure long-term investor confidence. The government’s new Clean Industry Bonus, designed to incentivise domestic investment, shows a willingness to adapt, but clear and predictable communication on market reforms is essential.
Balancing green ambitions with ecological realities
As turbines proliferate, so too do the environmental questions. The rapid deployment of offshore wind has raised concerns about its impact on marine biodiversity. Floating offshore wind (FLOW) technology offers one solution by enabling development in deeper waters further from shore, with projects like Salamander advancing with new ownership. Floating wind depends heavily on High Voltage transmission. WSP's involvement in major HVDC interconnectors like Aquind and Greenlink highlights the critical infrastructure being developed to support large-scale power transmission. The firm is also leading the EIA and consenting activities for the 3GW MarramWind floating offshore wind farm, providing a concrete example of industry action on environmental integration.
However, the path is not without setbacks. On 28 August 2025, news broke that North Sea operator CNOOC dropped its electrification plans for the Buzzard oil field. This blow to the flagship Green Volt floating wind project highlights the complexity of multi-sector integration and the challenges that can arise, even for advanced technologies. Navigating these ecological and logistical issues through ongoing dialogue and mitigation is crucial to ensure offshore wind development is both sustainable and successful.
Conclusion: A critical balancing act
The UK's offshore wind sector is at a pivotal moment. The vision is clear, and the economic potential is immense. But the execution faces significant challenges. Policy uncertainty, supply chain frailties, and infrastructure gaps threaten to undermine the entire enterprise. The government has inherited a challenge of immense scale, and its handling of the upcoming AR7 results, the final REMA decisions, and the Industrial Strategy will be crucial. The time for ambition is complemented by the need for decisive action, turning political promises into a secure, green, and resilient energy future.
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