Europe is moving from offshore wind targets towards project delivery, with governments revising auction designs, revenue stabilisation mechanisms and permitting rules, according to GlobalData. GlobalData's Europe Renewable Energy Policy Handbook 2026 identifies offshore wind as increasingly strategic infrastructure rather than simply another power generation technology. The report notes that offshore wind is among the renewable technologies capable of adding large volumes of low-carbon electricity.
European auction designs are being revised, with greater use of two-way Contracts for Difference (CfDs) and similar mechanisms intended to reduce revenue volatility while maintaining price competition. Policymakers are also introducing clearer provisions covering indexation, delivery schedules and non-performance penalties, alongside industrial and sustainability criteria.
Recent auctions illustrate the challenges facing the sector. In Germany, a 2025 auction for two centrally prepared North Sea sites with a combined capacity of 2.5 GW received no bids. Factors cited for the unsuccessful auction included the absence of revenue stabilisation mechanisms such as two-way CfDs, permitting risks and a lack of alignment between project schedules and grid availability.
France launched a tender in mid-2026 for around 10 GW of offshore wind, divided equally between fixed-bottom and floating projects across its maritime regions. The tender represents a significant expansion of floating wind plans alongside continued development of fixed-bottom projects.
In the United Kingdom, the latest Contracts for Difference allocation round awarded more than 8 GW of fixed-bottom offshore wind capacity, alongside floating projects. Strike prices for fixed-bottom projects were lower than in previous rounds.
Floating wind is also gaining a larger role in European policy. While fixed-bottom technology remains dominant in areas with suitable water depths, several governments are preparing commercial-scale floating tenders. These schemes are being designed to account for the higher costs and technology risks associated with floating projects.
Offshore wind is also increasingly being considered as part of wider energy system planning. Policy frameworks are linking offshore wind development with industrial electrification, hydrogen and e-fuel production, as well as cross-border electricity interconnection and balancing.
