Exploring Offshore Wind Energy: Helpful Insights, Practical Advice, and Discoveries

Offshore wind energy harnesses powerful, consistent winds over oceans, seas, and large lakes by installing turbines on fixed or floating platforms. This clean electricity source has emerged as nations seek to reduce emissions, diversify energy supplies, and tap into abundant marine wind resources not available on land. Offshore turbines tend to be larger—often up to 15 MW per unit—achieving higher efficiency despite higher upfront costs for marine foundations and infrastructure.

Why offshore wind energy matters today, who it affects, and what problems it solves

Offshore wind matters because:

  • It offers a steady and scalable renewable electricity supply—critical amid global climate goals.

  • Coastal countries and communities benefit from new jobs, export and manufacturing potential, and energy independence.

  • It addresses multiple challenges: reducing reliance on fossil fuels, moderating energy prices, and supporting grid stability.

Countries such as India, the UK, Germany, and Poland see offshore wind as a key piece of clean-energy strategies. It supports decarbonization while providing economic growth and geographic resilience.

Recent updates (past year, with dates where possible)

  • August 2025 – UK reforms Contracts for Difference (CfD): The UK extended CfD terms from 15 to 20 years and raised maximum bid prices to reflect inflation and supply-chain pressures. A new Clean Industry Bonus aims to support offshore wind suppliers. These steps encourage new bids to meet 2030 clean-energy targets after previous low participation.

  • 2025 – Poland’s offshore wind expansion: Poland, moving away from coal, accelerates offshore wind in the Baltic Sea. The €4.7 billion Baltic Power project aims for 76 turbines online by 2026. The country targets 6 GW by 2030 and 18 GW by 2040, with efforts to build local supply chains.

  • Mid-2025 – Germany stalling offshore growth: Germany still has 9.2 GW installed offshore, unchanged from end-2024, though 1.9 GW is under construction. Industry groups are calling for auction reforms and more predictable revenue mechanisms to meet targets of 30 GW by 2030.

  • July 2025 – Japan’s Mitsui buys Port of Nigg: To strengthen offshore wind logistics, Mitsui acquired Scotland’s Port of Nigg, enhancing capacity for assembly, maintenance, and supply chain support for floating wind projects.

  • August 2025 – U.S. funding withdrawn: The federal government rescinded $679 million in funding from 12 offshore wind projects across 11 states, including new loan guarantees. This reversal has raised concerns about the pace of offshore wind deployment in the U.S.

These developments highlight a varied global picture—aggressive expansion in some regions, cautious or retreating support in others.

Laws or Policies – How offshore wind is governed (focusing on India, with global context)

India

  • The National Offshore Wind Energy Policy (2015) remains the guiding framework, designating the Ministry of New and Renewable Energy (MNRE) as the nodal ministry and the National Institute of Wind Energy (NIWE) as the implementing agency.

  • In 2024, a Viability Gap Funding (VGF) scheme worth Rs 7,453 crore was approved: Rs 6,853 crore for 1 GW offshore capacity (500 MW each in Gujarat and Tamil Nadu) plus Rs 600 crore for port infrastructure.

  • The Offshore Wind Energy Lease Rules, 2023 regulate block leasing, with MNRE administering them.

  • June 2025: India canceled previous 4.5 GW offshore wind projects and announced a new tender for up to 4 GW in Gujarat and Tamil Nadu, alongside new Wind Energy and Manufacturing Roadmaps.

  • Domestic manufacturing push: As of July 2025, wind turbine norms mandate local sourcing, domestic data storage, and in-country operations for control and R&D—boosting “Make in India” targets (up from 25–30% to 70–80%).

  • Budget 2025 increased renewable energy funding by 53%, focusing on clean technology, infrastructure, domestic manufacturing, and offshore wind expansion.

  • Ambition: India targets 30 GW offshore by 2030; overall wind capacity (onshore + offshore) projected to grow from ~48 GW to 107 GW by 2030; long-term outlook up to 452 GW by 2050.

  • Other incentives: Waiver of Inter-State Transmission System charges for projects commissioned by June 2025; 100% foreign direct investment allowed through automatic route; Renewable Purchase Obligations enforced.

Global context

  • The UK extended its CfD scheme for 20 years and adjusted prices to attract new projects.

  • Germany and Poland are adjusting auction designs and revenue support to accelerate offshore development.

  • The European Union is exploring tripartite contracts among government, industry, and developers for stability and cost efficiency.

  • The U.S. government recently pulled back funding, slowing momentum.

Tools and Resources – Helpful tools, apps, calculators, templates

  • MNRE / NIWE (India): Official portals with policy documents, leasing rules, resource maps, and block demarcations.

  • FOWIND / FOWPI initiative: Technical and commercial assessments for offshore suitability in Gujarat and Tamil Nadu.

  • Global Wind Energy Council (GWEC) Reports: Data, market outlook, and global trends in offshore wind.

  • Ocean Energy Pathway reports: Analysis of social and economic benefits of offshore wind in India.

  • U.S. Department of Energy (DOE) Transmission Studies: Action plans for offshore transmission capacity.

  • Industry news platforms: Offshore WIND and Windpower Monthly for daily updates and sector insights.

Frequently Asked Questions (FAQs)

What is offshore wind energy?
It’s electricity generated by turbines installed at sea—either fixed to the seabed or floating—taking advantage of stronger offshore winds.

Why is offshore wind more expensive than onshore?
Costs are higher due to marine foundations, installation challenges at sea, and the need for subsea grid connections. However, efficiency gains and stronger winds help offset these costs.

What is India’s offshore wind target and current status?
India aims for 30 GW of offshore wind by 2030. Work is underway with VGF support, new tenders, and supply chain development.

How do Contracts for Difference (CfDs) support offshore wind?
CfDs guarantee a fixed price for electricity, stabilizing revenues for developers. The UK’s recent extension of CfD duration and pricing adjustments have made investment more attractive.

What are floating offshore wind farms?
These use floating platforms anchored to the seabed instead of fixed foundations—ideal for deep waters where traditional methods are not viable.

Conclusion

Offshore wind energy offers a promising path toward clean, reliable electricity by leveraging strong marine winds. While challenges remain—such as costs, grid integration, and supply chain capacity—policy reforms, technological innovation, and long-term planning are accelerating growth. In some regions, supportive frameworks are enabling rapid expansion, while in others, policy reversals pose risks. Overall, offshore wind remains a crucial piece of the global transition to a sustainable energy future.