Wind is a cost-effective renewable energy source that is crucial for achieving net-zero goals in Europe. Despite its potential, barriers hinder onshore and offshore wind development in the EU and UK, particularly accessing financing and the permitting process. Government intervention and reform can facilitate smoother permitting and construction phases.
This article explores the ongoing debate and offers guidance to wind energy producers and developers on effectively garnering support from various stakeholders to gain public approval and community support for these projects.
Penta's strategy, intelligence, and policy teams analyze developments across sectors, advising clients on opportunities, as well as challenges and risks. Our review of energy trends highlights key developments and policy direction.
If you have any questions, please don’t hesitate to get in touch with us here. Our teams are always available to provide in-depth analysis and expertise.
The EU: The gale force behind wind energy
The EU leads wind energy production globally, with an installed capacity of 255 Gigawatts (GW). This generates over 100 terawatt-hours (TWh) of electricity per year, enough to power 30 million homes. Last year, wind energy accounted for a record 17% of EU27+UK's electricity supply, ranking as the second-largest renewable energy source after biomass.
Meanwhile, the International Energy Agency predicts offshore wind could top Europe's power generation by 2040, with onshore wind in second place. Clearly, the winds of change have begun to blow. But what direction are they heading in?
The European Commission's RepowerEU plan aims to expand wind capacity to 510GW by 2030, with targets of 60GW of offshore wind and 1GW of marine energy, further increasing to 300GW and 40GW respectively by 2050. Implementing these ambitious goals face economic and regulatory challenges, with permitting and the regulatory landscape identified as major obstacles to wind energy deployment despite increased funding for projects.
The EU has agreed that the permit-granting procedures for onshore renewable deployment should be sped up, and not exceed 45 days. Additionally, the processes should be streamlined, and Member States are to set up a framework for cooperation on joint renewable energy projects by 2025. In so-called “renewable acceleration areas”, procedures should not take more than 30 days. Additionally, projects are not subject to a full Environmental Impact Assessment.
For offshore wind, the EU has published an Offshore Renewable Energy Strategy, which sets out rules around maritime spatial planning and integrated regional and grid planning, to create greater coordination between the Member States, transmission system operators (TSOs), and national regulatory authorities. Further, the Strategy sets out a common approach to grid connection, and a single offshore bidding zone.
Wind energy holds a vital position in the European Union's future plans. The combined ambition of member states is to generate approximately 107 GW of offshore wind energy, already surpassing the EU's target. The EU's role lies in facilitating smoother deployment by streamlining regulations. If the EU can overcome regulatory hurdles and accelerate deployment, the prospects for the sector will be promising. Now, the responsibility lies with the Member States to implement the bloc's plans.
It’s more than just bluster in Ireland
In May, the Irish Government announced its plans to develop a National Industrial Strategy for Offshore Wind, aiming to harness the economic potential of offshore wind while combating climate change, and in turn positioning Ireland as a leading player in the renewable energy sector.
The transition to renewable energy and Ireland’s abundant offshore wind resources offers substantial and unique economic opportunities for the country’s enterprise sector. The Strategy aims to capitalize on this resource by creating a robust supply chain and viable routes to market for renewable energy.
The successful implementation of the National Industrial Strategy for Offshore Wind relies on close collaboration between government, industry, and other stakeholders to create an ecosystem conducive to the growth of the sector. Now is the time for organizations to engage with the Government to help direct the outputs of the Strategy, and ensure that the opportunity in Ireland is seized.
As Ireland moves towards achieving its renewable energy targets, businesses can leverage this transition to diversify their operations, expand their market share, and contribute to a sustainable future. By aligning business strategies with government policy, companies can position themselves at the forefront of this burgeoning sector.
National needs vs local interests in England
Onshore wind energy perfectly aligns with the UK Government's goal of achieving a fully decarbonised electricity system by 2035. Nevertheless, England faces notable obstacles, especially concerning the planning process. These barriers have allowed local opponents to impede the growth of onshore wind projects, meanwhile the urgency to meet ambitious net-zero commitments has intensified longstanding tensions between the nation's energy security requirements and the need to safeguard local interests.
In 2015, then-Prime Minister David Cameron removed onshore wind developments from the scope of Nationally Significant Infrastructure Projects (NSIPs), returning planning power to local authorities. As a result, the development of onshore wind schemes has essentially ground to a halt. This is despite the fact that according to the BEIS Public Attitudes Tracker, 43% of people would be happy for an onshore wind farm to be built in their local area, with just 12% unhappy, and almost a third (32%) either unsure or neutral.
Labour Party leadership has pledged to overturn the de facto ban on onshore wind in the first few months of a Labour-led government. In a recent speech at the Future of Britain Conference, leader Sir Keir Starmer said that he wants to reform and accelerate the planning system so the UK can develop onshore wind. In areas where solar or onshore wind projects are granted permission, Labour has committed to electricity discounts for local communities as a way to encourage local support. Starmer has confirmed that the Government would override local objections for critical schemes.
A government consultation that closes on September 19 is gathering views on operational reforms for NSIPs. This aligns with the Government's National Infrastructure Commission calling for onshore wind projects to be redesignated as "nationally significant" to achieve net-zero targets. Grant Shapps, Secretary of State for Energy Security and Net Zero, has recognised the need to revamp the planning system for onshore wind. While an immediate policy change is unlikely, the post-General Election period may bring a potential shift in position.
In the short term, onshore wind developers have a prime opportunity to present their case to policymakers, urging a change in the Government's stance. Concurrently, they should initiate early engagement with local communities, seeking to comprehend public sentiments toward wind farms and their preferences for the projects.
Looking ahead, it is crucial that policies garner support from local communities, with various options available, such as investing in community or sports facilities and exploring ways to offer discounted energy prices as proposed by Labour. Identifying measures that resonate with the local community will strengthen the argument to policymakers and facilitate political decision-making and action. A proactive approach by developers armed with the right intelligence and strategy will facilitate valuable engagement with policymakers and communities alike.