Wind sector challenges are blowing over

Wind energy growth in Europe has been hindered by inflation, supply chain issues, and permitting delays, but is now showing signs of recovery through increased turbine orders and auction volumes. While onshore costs plateaued or rose slightly since 2021, offshore wind continues to see cost declines, and both remain cheaper than fossil gas generation. Despite this, a delivery gap remains between current forecasts and the 2030 EU targets, requiring further policy implementation and grid reforms.

• Wind generation grew by 7 TWh year-on-year in 2024 to reach 477 TWh, though this is lower than the 30 TWh average annual increase seen from 2019 to 2023. Annual capacity additions are projected to rise from an estimated 13 GW in 2024 to nearly 30 GW by 2030.
• Macroeconomic pressures, including high inflation and supply chain disruptions from the pandemic and Russian aggression in Ukraine, interrupted the cost decline of wind power. In Europe, onshore and offshore wind costs fell by 68% and 60% respectively between 2010 and 2021, but have broadly plateaued since 2021. Specifically, the LCOE for onshore wind in Germany rose from €39-83/MWh in 2021 to €43-92/MWh in 2024.
• Wind power remains cost-competitive against fossil gas in the EU. The average short-run marginal cost of EU gas power in 2024 was estimated at €96/MWh, peaking at €125/MWh in December, which is higher than the typical cost of both onshore and offshore wind in the EU for 2024.
• Policy barriers such as inadequate grid development, restrictive planning rules, and slow permitting have hindered growth. In 2022, EU permitting times for onshore wind averaged 6 years, though new rules aim to reduce this to 2 years. Germany has made significant progress, with approvals reaching 12 GW in 2024, a 60% increase over 2023.
• There is a significant delivery gap between current market forecasts and EU ambitions. While WindEurope and the IEA predict annual additions of 19-22 GW (net) between 2025 and 2030, an average of 34 GW is required to meet 2030 EU targets and Member State plans.

APA

Ember (2025). Wind sector challenges are blowing over. https://ember-energy.org/chapter/wind-sector-challenges-are-blowing-over/

Chicago

Ember. Wind sector challenges are blowing over. 2025. https://ember-energy.org/chapter/wind-sector-challenges-are-blowing-over/.

Wikipedia

{{cite report |author=Ember |title=Wind sector challenges are blowing over |date=23 January 2025 |url=https://ember-energy.org/chapter/wind-sector-challenges-are-blowing-over/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025wind, author = {{Ember}}, title = {{Wind sector challenges are blowing over}}, institution = {Ember}, year = {2025}, month = jan, url = {https://ember-energy.org/chapter/wind-sector-challenges-are-blowing-over/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }