The UK will need to secure a record 8.4 gigawatts (GW) of new offshore wind contracts in its next renewable energy auction to remain on track with government targets for a clean electricity system by 2030, according to a new report by Offshore Energies UK (OEUK).
The report, Wind Insight 2025, highlights the scale of the challenge facing the government’s Clean Power 2030 (CP30) plan, which aims for between 43GW and 51GW of installed offshore wind capacity by the end of the decade. OEUK warns that rising capital costs, supply chain constraints, and market uncertainties could hinder progress.
“Meeting the government’s 2030 target of 43 and 51GW of installed offshore wind capacity means securing £15 billion of private investment in offshore wind each and every year between now and 2030,” said Thibaut Cheret, OEUK’s wind and renewables manager.
The UK currently risks falling short of that target, with projections suggesting just 35GW of capacity may be reached by 2030 if current trends continue. OEUK said Allocation Round 7 (AR7) of the UK government’s Contracts for Difference (CfD) scheme – the primary mechanism for supporting low-carbon electricity generation – must deliver “historic levels” of procurement to close the gap.
The need for rapid expansion comes amid broader ambitions under the CP30 plan, published by the National Energy System Operator (NESO) in 2024. The strategy outlines a future power system dominated by renewables, targeting 95% of electricity demand to be met by clean sources. Offshore wind is positioned as a cornerstone of that shift, alongside onshore wind and solar.
However, the sector has faced recent setbacks, including delays to projects such as Hornsea 4, attributed to inflation and rising financing costs. OEUK’s report underscores the importance of both fixed and floating offshore wind technologies in delivering on climate commitments and boosting energy security.
“AR7 needs to clear a record 8.4GW of offshore wind capacity to maintain the course toward CP30,” Cheret said. He added that floating offshore wind (FOW), which enables deployment in deeper and windier waters, is poised to become a “growth engine” for the industry, especially beyond 2030.
The report also notes that while the UK’s offshore oil and gas sector brings decades of experience, a significant portion of the investment required for floating wind development remains inaccessible to many domestic firms. Strategic investment in innovation, skills, and infrastructure is needed to ensure the UK supply chain can compete globally.
“If we get this right, the UK can become a market leader in wind power generation and play a major part in delivering a homegrown energy transition,” Cheret said.
OEUK’s recommendations include front-loading development plans, prioritising timely transmission infrastructure, and ensuring energy investment benefits the UK economy long-term. The report also stresses that energy security must be considered alongside decarbonisation objectives.
