Offshore wind sector confronts supply‑chain and policy hurdles

The offshore wind industry is showing strong growth potential but faces significant global and local challenges. In 2025 the United Kingdom generated almost 20 % of its electricity from offshore wind, with about 3,000 turbines supplying power to roughly 15.5 million homes and 9.3 GW of capacity added to the grid. Global additions are expected to reach another 18.8 GW by the end of 2026, pushing total capacity above 100 GW.

Installation pace is lagging, as 2025 saw China add 6.6 GW while European countries contributed only around 3 GW. New project contracts fell sharply from 56 GW in 2024 to 11.4 GW in 2025, reflecting failed auctions and rising costs. Major developers have cancelled projects: Ørsted dropped the 2.4 GW Hornsea 4 farm in the UK, citing “increase of supply chain costs, higher interest rates, and an increase in the risk to construct and operate”; Mitsubishi cancelled three Japanese projects totalling 1.5 MW; and TotalEnergies withdrew from German projects worth 3 GW, prompting a government challenge.

Experts attribute the setbacks to supply‑chain crunches, inflation, higher financing costs, grid‑connection delays and limited port capacity. They call for stronger policy signals and robust auction pipelines to restore investor confidence and keep the sector on track to meet climate targets.