Essential Requirements for Sector Success

Regarding the upcoming renewables auction, OEUK recommends that the government award up to 7 GW of capacity. This volume is necessary to maintain an average of 5 GW per year while ensuring project affordability relative to broader electricity prices. Furthermore, the report cautions that the expansion of generation capacity is contingent upon the grid keeping pace. All planned upgrades must conclude by 2028 to enable the integration of projects currently in the pipeline. OEUK advocates for more stringent accountability for grid operators, including clear deadlines and compensation mechanisms for delays.

Building Long-term Industrial Stability

The final pillar of the report focuses on the necessity of a stable investment environment rather than the current stop-start cycle. A predictable timetable for annual auctions through 2030 would allow companies to stabilize their supply chains and retain specialized labor. Thibaut Cheret, OEUK wind and renewables manager, noted, “Offshore wind is vital for the UK’s clean energy goals, but achieving these ambitions requires building, connecting, and commissioning projects not just setting targets. Success relies on driving down costs, awarding enough capacity, upgrading the grid promptly, and supporting industry infrastructure and supply chains that have developed through decades of oil and gas experience.”

Cheret added, “To meet its goals, the UK must deliver about 5 GW of offshore wind annually. Failing to do so puts clean energy targets at risk. Offshore wind’s fast growth is possible due to established expertise in related fields including subsea engineering, marine operations and project management as well as rigorous HSE protocols. If progress slows, the UK risks falling behind globally and losing both projects and their supporting industrial base.” Beyond policy recommendations, OEUK has released updated development guidelines incorporating changes from the most recent allocation round and the implementation of the Clean Industry Bonus, which incentivizes developers to invest in sustainable supply chains within the broader offshore wind strategy.

Nordseecluster B, with a capacity of 900 MW, represents the second phase of a 1.6 GW offshore wind cluster jointly owned by RWE (51%) and Norges Bank Investment Management (49%). The broader development is expected to generate enough renewable electricity to power approximately 1.6 million households, reinforcing national energy security. “Thanks to the collaboration with Hitachi Energy we will be able to integrate our Nordseecluster into the grid. With this 1.6-gigawatt cluster, RWE is significantly expanding its offshore wind portfolio and helping to deliver a reliable, clean, and affordable energy system” said Sven Schulemann, RWE’s Managing Director of the Nordseecluster.

Hitachi Energy’s involvement builds on its earlier role in Nordseecluster A, where it supplied MicroSCADA systems for offshore substations delivered by Chantiers de l’Atlantique under an engineering, procurement, construction, and installation mandate. The latest contract further reinforces its position in enabling grid connectivity and operational reliability across offshore wind projects. “Amidst the substantial growth of the global offshore wind market, our specialized automation and communication technologies are delivering the essential efficiency and reliability RWE requires to be the driving force behind Germany’s energy transition” said Claus Vetter, Group Senior Vice President and Head of Automation and Communication at Hitachi Energy.

The MicroSCADA system is designed to provide integrated automation and secure system management across wind farm operations. It supports high-voltage switchgear coordination, ensures compatibility with third-party 66 kV generator switchgear, and connects offshore assets with onshore control centres, transmission system operators, and energy trading teams. Through real-time monitoring and cybersecurity-compliant data exchange, the system enhances operational visibility and efficiency across the offshore wind network.

In the near term, the company will manufacture fuel assemblies compatible with existing reactor designs, while simultaneously progressing the development and qualification of proprietary European fuel designs for both VVER-440 and VVER-1000 reactors. This work builds on a EUR10 million (USD10.7 million) grant awarded in June 2024 under the Euratom Research and Training Programme, supporting the SAVE (Safe and Alternative VVER European) project led by Framatome, which includes participation from 17 stakeholders.

The broader programme aligns with parallel industry efforts such as the Westinghouse Electric Company-led APIS initiative launched in July 2023. Framatome’s project is currently in its initial phase, focusing on the design of the VVER-440 fuel assembly, designated VERA-440, along with its transport container. Subsequent stages will involve fabrication and regulatory licensing, with the first fuel bundles planned for deployment at Fortum’s Loviisa nuclear power plant in Finland. Regular supply operations are expected to begin in the early 2030s.

“Today we celebrate far more than a technical accomplishment – we celebrate a shared vision and a strong teamwork across borders,” said Framatome CEO Grégoire Ponchon. “I warmly congratulate all Framatome teams and extend my sincere gratitude to ČEZ, Fortum, MVM Paks NPP, and Slovenské elektrárne for the trust they have placed in Framatome. Their confidence has been essential in bringing this ambitious project to life. This agreement reflects our shared intention to work together over the long term, fostering continuous improvement, innovation, and operational excellence in nuclear fuel supply.”

European utilities involved in the VVER fuel agreement emphasised its role in strengthening energy security and diversifying supply chains. Bohdan Zronek of ČEZ highlighted the importance of supplier diversification for operational stability, while Fortum’s Petra Lundström noted the benefits of collaborative European solutions. Executives from MVM Paks NPP and Slovenské elektrárne similarly underscored the strategic importance of long-term fuel security, operational predictability and reduced dependency risks across the region.

Under the revised framework, systems with inverter output up to 800 VA qualify for a streamlined connection process. Notably, this simplified route now extends to PV installations exceeding 2,000 Wp, including configurations incorporating storage or those applying for remuneration. System operators can independently complete registration through a designated form, removing earlier procedural barriers. While inverter output remains capped at 800 VA—effectively limiting grid feed-in—the updated standard eliminates formal restrictions on total module capacity within this category.

The revised Germany Plug-in PV Rule enable more flexible system design, particularly when combined with battery storage to maximize self-consumption. Industry estimates referenced in stakeholder discussions indicate that configurations approaching 10 kW may be technically feasible under the new structure, subject to compliance thresholds. These include mandatory smart meter installation for systems exceeding 7 kW, alongside adherence to technical standards such as DIN VDE V 0126-95 and DIN VDE V 0100-551-1.

In addition, the Germany Plug-in PV Rule clarifies registration requirements across system types. Plug-in PV systems without storage, below 2,000 Wp, and not seeking remuneration can now be recorded solely in Germany’s market master data register, bypassing grid operator notification. However, larger installations or those integrating storage must still undergo the simplified registration process with the grid operator. Storage units are permitted to draw electricity from both on-site PV and the grid, provided safety conditions—including overload protection and real-time monitoring—are met.

Industry participants highlighted that advancements in dynamic load management and thermal protection technologies could further enhance system efficiency within the 800 VA limit, especially when paired with storage. The regulatory shift comes amid rapidly increasing deployment of plug-in solar systems across Germany, where adoption rates are outpacing traditional residential rooftop PV installations.

The Thor project will ultimately consist of 72 turbines, each with a capacity of up to 15MW, with installation targeted for completion by the end of 2026. Full commercial operations are expected no later than 2027. As part of its sustainability strategy, RWE plans to outfit 36 turbines with Siemens Gamesa’s GreenerTower technology, which uses steel certified to emit no more than 0.7 tonnes of CO₂ equivalent per tonne. Additionally, 120 recyclable blades will be installed across 40 turbines, reinforcing efforts to reduce lifecycle emissions.

Progress on offshore construction remains aligned with timelines, with all foundations and the offshore substation already completed in 2025. Turbine installation is now advancing steadily. To support long-term operations and maintenance, a dedicated service facility has been established at the Port of Thorsminde, with expectations to generate between 50 and 60 local jobs.

The recyclable blades introduced by Siemens Gamesa incorporate a specialised resin that allows composite materials to be separated at the end of their lifecycle, enabling reuse in sectors such as automotive manufacturing and consumer goods. RWE has previously deployed this blade technology at the Kaskasi wind farm in Germany and the Sofia wind farm in the UK, indicating a broader rollout of circular solutions across its offshore portfolio. Commenting on the development, RWE Offshore Wind CEO Sven Utermöhlen said: “Offshore wind already has one of the lowest life cycle carbon footprints of power generation technologies. By using towers produced with greener steel and recyclable rotor blades, we are further reducing the carbon footprint and taking a significant step towards fully circular offshore wind.” The Thor wind farm is located approximately 22km off the west coast of Jutland near Thorsminde, with RWE holding a 51% stake and leading construction and operations, while Norges Bank Investment Management owns the remaining 49%.

The agreement centres on the 50 MW Pizarroso solar plant in Cáceres, which has been operational since 2023. Under the deal, Zelestra will integrate a 160 MWh battery energy storage system into the facility, transforming it from a standalone solar installation into a hybrid asset capable of responding to market fluctuations and supporting grid stability. Unlike greenfield hybrid projects—where solar and storage are designed together—the retrofit model introduces added engineering challenges, including system integration, inverter compatibility, and grid interconnection constraints. Despite this complexity, the model highlights a growing need to enhance the performance of existing renewable assets rather than relying solely on new capacity additions.

Spain’s rapid solar expansion has intensified midday oversupply risks, leading to price cannibalisation and curtailment in certain regions. By incorporating storage, operators can shift energy output to periods of higher demand, improving revenue predictability while reducing strain on the grid during peak production hours. The 160 MWh system suggests a configuration focused on intra-day balancing, aligning with current opportunities in energy arbitrage and ancillary services, although long-term value will depend on how electricity markets evolve to reward flexibility.

EDP’s role as the offtaker reflects a broader shift in power purchase agreement structures, moving away from fixed-volume contracts toward more dynamic arrangements that incorporate storage-enabled optimisation. By embedding storage within the agreement, EDP gains greater control over supply-demand alignment, reducing exposure to negative pricing and improving portfolio balancing. The companies previously collaborated on a project in Trujillo, Extremadura, combining 170 MW of solar with 400 MWh of storage. The progression toward retrofit applications signals a broader expansion of hybridisation strategies, reinforcing the relevance of the Solar Storage Retrofit model across different asset types and development stages.

Under the planned France offshore wind tender, authorities will allocate a total of 10 gigawatts of capacity, split evenly between turbines fixed to the seabed and floating wind installations. The projects will be distributed across seven designated zones spanning the English Channel, Atlantic Ocean and Mediterranean Sea. In a move aimed at strengthening regional supply chains, the tender will include provisions requiring developers to rely on domestic and European manufacturing, reducing dependence on Chinese components.

The timing of the auction reflects mounting pressure within the sector. Developers have been contending with higher equipment costs, tighter financing conditions, and ongoing construction challenges. Industry sentiment has also been affected by project cancellations in the US linked to decisions by Donald Trump. Against this backdrop, the French government is attempting to provide stability while maintaining its long-term climate commitments, including achieving carbon neutrality by mid-century.

Despite parallel investments in nuclear energy, the government’s renewable push has faced criticism from opposition groups such as Marine Le Pen’s National Rally ahead of the upcoming presidential election. France has also scaled back earlier expansion targets for solar and onshore wind, increasing the strategic importance of offshore deployment.

Energy minister delegate Maud Bregeon stated the tender would help “consolidate our industry for bottom-fixed wind, and to become the leader of the floating wind industry.” She added that up to four of nine strategic turbine components and as much as 50% of permanent magnets may still be sourced from China. Developers selected under the France offshore wind tender are expected to receive a guaranteed power price of below €100 ($115) per megawatt hour.

Recent project dynamics highlight both opportunity and risk. The government awarded a 1.5-gigawatt offshore project to TotalEnergies SE last year after limited bidding interest. Meanwhile, Electricite de France SA has encountered construction delays and sought to renegotiate support for projects off Normandy. Currently, France operates nearly 2 gigawatts of offshore wind capacity, with 5.6 gigawatts under construction or development. The country aims to reach 15 gigawatts by 2035 and 45 gigawatts by 2050, meeting roughly 20% of national electricity demand.

Under the terms of the MOU, the companies will explore cooperation across a range of technical domains linked to the SMR rollout, including fuel qualification and testing, plant life management, hot cell technology, core design and operational modelling, as well as regulatory licensing support. The arrangement allows Rolls-Royce SMR to assess Studsvik’s facilities and technical capabilities, while identifying areas where these services can support the deployment of its ‘factory-built’ NPPs. Chris Cholerton, Rolls-Royce SMR CEO, said: This agreement expands our relationship with Studsvik and strengthens our European supply chain, bringing together worldclass expertise to support the rollout of Rolls-Royce SMR technology. Studsvik’s long-standing capabilities in nuclear services make them an ideal partner as we accelerate towards deploying our SMRs across global markets.

Studsvik President & CEO Karl Thedéen also pointed to the timing of the agreement as aligned with increasing momentum in nuclear investment. He said: Governments and customers around the world have taken decisions on important investments in nuclear power, creating long-term opportunities. We are convinced that working closer together, both organisations will benefit from the acceleration of Rolls-Royce SMR business activities in the Nordics, UK and Europe, supporting stable, clean, and reliable energy. The Rolls-Royce SMR design features a three loop PWR delivering 470 MWe derived from 1,358 MWt, built around modularisation principles that prioritise factory-based assembly using standardised components alongside advanced manufacturing techniques.

Progress on deployment continues following the outcome of a multi-year competition managed by Great British Nuclear (now Great British Energy – Nuclear), where Rolls-Royce was selected as the primary technology partner and preferred bidder in June 2025, with a Final Investment Decision (FID) anticipated in 2029. The UK Government identified Wylfa on the island of Anglesey, North Wales, in November 2025 as the site for three Rolls-Royce SMRs, with potential expansion to eight units. In parallel, the company has been selected by Czech utility ČEZ to deliver up to 3 GWe of new nuclear capacity in the Czech Republic and remains among the final two contenders in Vattenfall’s technology selection process in Sweden for potential SMR construction at the Ringhals NPP site. Studsvik continues to support the global nuclear sector with specialised services spanning fuel and materials testing, plant life-extension, and operational efficiency, backed by more than 75 years of experience in nuclear technology and radiological services.

Preparatory work for Offshore Wind Leasing Round 6 is already underway, with The Crown Estate launching a market engagement programme ahead of the formal leasing process. The exercise aims to gather industry feedback on commercial structures and assess overall viability, alongside gauging developer interest. At the same time, the National Energy System Operator’s (NESO) strategic plans for both energy and electricity networks are expected to play a central role in determining final project capacity and site-specific parameters.

Beyond the immediate scope of Round 6, The Crown Estate has also highlighted additional seabed opportunities across the South West, Wales and other regions. These areas could form part of future leasing rounds under the newly introduced Marine Delivery Routemap, which is being deployed for the first time in this round. This structured approach is intended to streamline seabed allocation and align offshore wind expansion with long-term system planning objectives.

The latest announcement follows the conclusion of Round 5, which focused on floating offshore wind in the Celtic Sea and targeted up to 4.5 GW of capacity. Seabed rights in that round were awarded to Equinor, Gwynt Glas, and Ocean Winds, with each project area reaching up to 1.5 GW. Agreements for lease have now been finalised for all three sites. The timing of Offshore Wind Leasing Round 6 also coincides with broader policy momentum, including the UK government’s confirmation that Contracts for Difference (CfD) Allocation Round 8 (AR8) will open in July 2026, shortly after 8.4 GW of offshore wind capacity was secured in AR7-the largest volume awarded in a UK auction so far.

The UK currently operates around 17 GW of installed offshore wind capacity, with an additional 12 GW under construction, reinforcing its position as one of the world’s leading offshore wind markets. “The UK’s offshore wind sector has become the leading source of clean energy in the UK, providing enough power for the equivalent of half of all UK homes. It attracts billions of pounds of inward investment, supports tens of thousands of skilled jobs around the country, and boosts energy security by reducing reliance on fossil fuels”, the Crown Estate said on 26 March. In parallel, the Clean Power 2030 Action Plan released in December 2024 by the UK Department for Energy Security and Net Zero (DESNZ) outlines a pathway to achieving a near fully clean electricity system by 2030, with offshore wind positioned as a central pillar of that transition.

The proposal follows the record-breaking AR7 auction results announced in January 2026, alongside a growing offshore wind order pipeline for Vestas within the UK market. It also builds on ongoing strategic discussions involving the UK Government, the Scottish Government and Vestas, focusing on advancing development plans and potential co-investment in the facility. However, the final investment decision remains contingent on securing sufficient UK-based orders through AR7 and AR8. Depending on the outcome of these auctions and the planning process, production at the site could begin between 2029 and 2030. Plans also include exploring opportunities to co-locate key sub-suppliers for major components.

Commenting on the development, Henrik Andersen, CEO Vestas, says, The UK government has made a big statement with AR7, showcasing how wind energy creates a positive impact on energy security, sustainability, and affordability for end consumers. We welcome the UK and Scottish governments’ dedication to fostering a competitive offshore wind market and look forward to working together to progress our co-investment plans. He further adds, Establishing a nacelle and hub assembly factory in Scotland would create hundreds of local jobs and support further jobs across the wider supply chain, delivering long-lasting economic benefits to the region.

The wind turbine facility proposal has also received backing from policymakers. Energy Secretary Ed Miliband highlights the role of the government’s clean energy agenda in driving industrial employment and strengthening national energy resilience. Meanwhile, Deputy First Minister and Economy Secretary Kate Forbes notes that the project reflects Scotland’s strong positioning as an investment destination within the offshore wind sector, supported by sustained engagement with Vestas since 2021. The planned facility would mark Vestas’ fifth European factory dedicated exclusively to offshore wind turbine nacelles and blades, reinforcing its strategy of expanding manufacturing capacity in regions with robust demand visibility.