The United Kingdom has big ambitions for its wind energy, already ranking at around sixth globally for its wind energy capacity. Having developed significant onshore and offshore wind capacity, the government aims to work more closely with the rest of Europe to establish the world’s largest ‘clean energy reservoir’.

There is roughly 15.7 GW of operational onshore wind power in the U.K., with capacity increasing by around 739 MW in 2024 thanks to the development of projects such as the Viking (443MW), Kype Muir Extension (67.2MW), and Broken Cross (43.2MW) windfarms.  The U.K. is expected to grow its capacity to 26 GW of onshore wind by 2030. At present, the sector employs around 55,000 people, a figure that is set to double to around 110,000 by 2030.

In January, the German chancellor, Friedrich Merz, announced that he aims for the North Sea to become the “largest reservoir of clean energy worldwide”, stating plans to accelerate and connect Europe’s offshore wind energy projects. The U.K. and nine other European states – Belgium, Denmark, France, Germany, Iceland, Ireland, Luxembourg, the Netherlands, and Norway – signed an agreement to speed up the deployment of offshore windfarms in the 2030s, as well as develop a power grid in the North Sea, thereby transforming the ageing oil reserve into a “clean energy reservoir”.

The partners will construct windfarms at sea that connect directly to several European countries through high-voltage subsea cables. The group hopes to supply 100 GW of offshore wind power through the reservoir, or enough to provide clean energy for around 143 million households. This will be achieved as the countries collectively develop 5 GW of offshore wind capacity a year between 2031 and 2040 by supporting private sector investments.

The project has attracted interest from 100 companies, which have signed an industry declaration that promises to reduce costs and create 91,000 jobs. The deal is expected to help attract $1.19 trillion in offshore wind investment by 2040.

The U.K. Energy Minister, Ed Miliband, said the government was “standing up for our national interest” by encouraging green energy development and getting “off the fossil fuel rollercoaster”. Miliband stated, “We see it [as] absolutely in our national interest to not only pursue clean energy domestically at home, but to work with our European allies and friends on delivering it across the North Sea.” He added, “This clean energy security pact – the Hamburg declaration – is an incredibly statement, I think, of our shared commitment to make the North Sea a clean energy powerhouse.”

The announcement comes just after United States President Donald Trump strongly criticised the U.K. for developing its renewable energy sector, particularly wind power, rather than expanding North Sea oil and gas production, when speaking at the World Economic Forum in Davos in January.

Trump stated, “I want Europe to do great. I want the U.K. to do great. Sitting on one of the greatest energy sources in the world, and they don’t use it. In fact, their electricity prices have soared 139 percent. There are windmills all over Europe. There are windmills all over the place, and they are losers. One thing I’ve noticed is that the more windmills a country has, the more money that country loses, and the worst that country is doing.”

But Trump’s opinion does not seem to have had an impact on the U.K. Labour government’s plans for renewable energy expansion. In addition to the 10-state deal, the U.K. also plans to develop cross-border, offshore electricity projects with Germany, Belgium, Denmark, and the Netherlands using cost-sharing schemes.

The U.K. also recently held a record-breaking offshore wind auction, supporting the creation of 7,000 skilled jobs and driving $30.1 billion in private sector investment for the U.K.’s factories and ports. The 8.4 GW wind project pipeline of eight new offshore farms is expected to be enough to power 12 million homes. The projects include standard windfarms, with turbines fixed to the seafloor, as well as innovative floating windfarms, which could allow the U.K. to develop projects in deeper areas of the North Sea.

Miliband emphasised the low cost involved with developing offshore wind compared to other energy sources. “The price secured in this auction is 40 percent lower than the alternative cost of building and operating a new gas plant. Clean, homegrown power is the right choice to bring down bills for good, and this auction will create thousands of jobs throughout Britain,” said Miliband.

The U.K. has doubled down on its wind energy expansion plans in recent years, with the development of large-scale onshore and offshore wind farms, and a considerable project pipeline planned for the coming decade. A successful wind energy auction in January has demonstrated the appeal of the U.K. market for private investors in renewable energy. In addition, the signing of a major agreement with other European powers to develop a ‘clean energy reservoir’ means that the region’s wind energy capacity is expected to grow at an unprecedented rate.

By Felicity Bradstock for Oilprice.com

More Top Reads From Oilprice.com

• India’s Top Refiner Cashes In as Oil Prices Slide
• Trafigura Calls for a Rethink of LNG Project Funding
• Germany Seeks Middle East LNG Deals