EnergyOMNI's Perspectives I Ember Report Reviews 25 Years of the UK's Offshore Wind Development

Edited by EnergyOMNI

The UK energy think tank Ember recently published a report titled "25 Years of British Offshore Wind," reviewing the 25-year history of offshore wind development in the United Kingdom.

In December 2000, the UK's first offshore wind farm, Blyth, was officially inaugurated. It was the sixth offshore wind farm in the world, but is often described as the first "truly offshore" wind farm. After the world's first offshore wind farm was completed in Denmark in 1991, four additional projects were built, but they were smaller in scale and located in more sheltered waters. By contrast, the Blyth Offshore Wind Farm was built in deeper water and at a larger scale. It used 2 MW turbines, with a total installed capacity of 4 MW, and at the time was able to generate enough electricity to power around 3,000 households annually.

The Blyth Offshore Wind Farm was decommissioned in 2019, but the data clearly illustrate the pace of technological progress over the past 25 years. By comparison, the Moray West offshore wind farm, which entered operation in 2025, has an installed capacity of 882 MW, with individual turbines rated at 14.7 MW. Each turbine has a swept area ten times larger than those used at Blyth, and the project's annual generation is sufficient to supply electricity to one million households.

After 25 years, offshore wind development in the UK has gained the support of the country's main political parties and has become the UK's second-largest source of electricity. In 2024, offshore wind supplied nearly one-fifth of national electricity generation, accounting for 17% of total power output. To date, the UK has 47 operational offshore wind farms, with 2,878 turbines installed and a cumulative installed capacity of 16 GW. A further 9.1 GW is under construction, 2.9 GW has secured Contracts for Difference (CfDs), and 15.2 GW has obtained planning consent. An additional 15.6 GW is at the planning and development stage, supporting steady progress toward the government's 2030 target of 43–50 GW.

Beyond being an energy source, offshore wind has also created a major industrial ecosystem. According to the report, the UK offshore wind sector employs around 40,000 workers, with 7,000 jobs added in the past two years alone. The industry also supports a large number of non-engineering roles, including in legal and financial services. Overall, the UK wind power supply chain comprises around 2,000 companies, with substantial investment flowing into port and harbour infrastructure across the country. Operations and maintenance ports, as well as manufacturing hubs, are now distributed throughout the UK.

The UK's policy and regulatory framework has also undergone several major transitions. In 2002, the UK introduced the Renewable Obligation (RO), which required electricity suppliers to source a specified proportion of their power from renewable energy. Suppliers could meet this obligation by purchasing Renewable Obligation Certificates (ROCs) from renewable generators or by paying a buy-out price as a penalty. This mechanism allowed renewable generators to earn ROC revenues in addition to electricity sales. In 2014, the UK then introduced two-way Contracts for Difference (CfDs). Under this system, when wholesale electricity prices exceed the contract strike price, offshore wind projects must return the difference to consumers. Since the introduction of two-way CfDs in the UK, 13 countries have adopted similar two-sided auction mechanisms. The UK's CfD scheme has now reached its seventh allocation round (AR7), which launched in August, opened for bids in November, and will announce results on 14 January 2026.

The Ember report also highlights the key challenges currently facing the UK offshore wind industry. These challenges are not unique to the UK and offer important lessons for other countries developing offshore wind.

First, the industry as a whole faces supply chain bottlenecks and financing pressures. In response, the UK has prioritised the creation of new manufacturing jobs and the promotion of technological innovation. The government launched the Offshore Wind Industrial Growth Plan, which identifies strategic areas where the UK should expand manufacturing capacity, including advanced blade technologies, deep-water foundations, and innovative cable technologies. Even amid rising global costs, the economic value of offshore wind can still be retained domestically.

In 2025, the UK government announced the establishment of a government-owned energy company, Great British Energy, to invest in clean energy supply chains. The government will set out "strategic priorities" to guide the company's operations. In June, Great British Energy announced a partnership with industry and the Crown Estate to invest £1 billion in offshore wind, supporting manufacturing and R&D for turbines, floating platforms, and high-voltage direct current (HVDC) cables, as well as upgrading several key ports.

Second, industry consolidation and greater standardisation are critical to ensuring long-term stability. Standardisation is particularly needed in turbine component sizes and deployment timelines. Modern turbines continue to grow in size and capacity, but a lack of standardisation may reduce the learning benefits of scale and could even hinder innovation. Frequent increases in turbine size can prevent knowledge transfer between projects, complicate transport and logistics, and undermine investor confidence. The European Committee for Standardization (CEN) is currently preparing an offshore wind standardisation roadmap to be released in 2026, and many turbine manufacturers have called for greater industry-wide standardisation of key components, such as platform dimensions and blade lengths.