The European Wind Charter, endorsed by 26 EU governments, the European Commission, and the European wind industry, has seen substantial progress in its first year. The Charter committed 26 EU Governments, the EU Commission, and the European wind industry to implement the 15 measures set out in the European Wind Power Package to strengthen Europe’s wind industry.
Financial support has been a notable achievement. Public financial institutions, including the European Investment Bank, have established a five billion euro counter-guarantee facility for wind energy. This has made it easier for private banks to issue performance bonds for turbine manufacturers. Additionally, the European Innovation Fund has awarded 220 million euros to six wind turbine manufacturing and development facilities. Member States have also provided public financial support for new factories and infrastructure essential for wind energy.
Industry growth has been impressive, with Europe developing 30 new factories for wind and grid equipment and investing 11 billion euros in new manufacturing facilities over the past year. By the end of next year, Europe will be able to manufacture 9.5 gigawatts of offshore wind and 22.5 gigawatts of onshore wind turbines annually. Spain and Germany have created national wind charters and action plans, improving auction design and manufacturing capacity.
Permitting and auctions have improved, with Germany leading the way in applying new European Union permitting rules, significantly increasing the rate of onshore wind permitting. Germany has successfully auctioned 11 gigawatts of new onshore wind, and Europe has auctioned 19 gigawatts of new offshore wind in 2024. Several countries, including Romania, Estonia, Norway, and Poland, have launched their first wind energy auctions.
Corporate Power Purchase Agreements (PPAs) have reached a record high, with 11 gigawatts of new agreements signed with corporate electricity consumers in 2024.
Despite the progress, challenges remain. Permitting issues persist, as many countries have yet to fully apply the new European Union permitting rules. Grid bottlenecks are another significant challenge, with Europe’s transmission and distribution networks not expanding quickly enough, causing project delays and energy curtailments from existing wind farms. The slow pace of electrification is also a concern, as industrial consumers face difficulties in electrifying their factories with wind power due to business case challenges.
Future measures should include the European Union Clean Industrial Plan, which should support capital expenditure and operational expenditure for industrial sectors aiming to electrify. Governments need to improve auction designs, avoid failures like Denmark’s offshore wind auction, and incentivise the repowering of older wind farms to increase energy production with fewer turbines.
