North Sea nations announce ambitious offshore plans to deal with Russia energy risk

Germany, Belgium, Denmark and the Netherlands have signed an historic agreement to combine forces and deliver a massive 65GW of new offshore wind power by 2030, as part the European effort to tackle reliance on Russian oil and gas, and accelerate the shift away from fossil fuels. The four North Sea countries made their announcement days after the European Commission launched its REPowerEU project, which is the EU’s response to the energy market disruption caused by Russia's invasion of Ukraine. The EU’s plan, announced on 18 May, is based on a combination of energy savings, diversified energy supplies and accelerated rollout of renewable energy to replace fossil fuels in homes, industry and power generation. “Energy security and the fight against climate change are crucial to the future of the European Union… taking note of the European Commission’s REPowerEU announcement of 18 May, we aim to take urgent and immediate action. The recent geopolitical events will accelerate our efforts to reduce fossil fuel consumption and promote the deployment of renewable energy for more energy resilience in Europe,” said the North Sea Alliance, in a joint announcement. “Therefore, we will increasingly replace fossil fuels, including Russian oil, coal and gas, with European renewable energy from the North Sea, including offshore wind and green hydrogen, contributing to both EU climate neutrality and energy security,” it continued. The four nations have agreed ambitious combined targets for offshore wind of at least 65GW by 2030. “Based on the North Sea as a 'green power plant of Europe’, together we aim to more than double our total 2030 capacity of offshore wind to at least 150GW by 2050, delivering more than half of the capacity needed to reach EU climate neutrality, according to the European Commission’s Strategy on Offshore Renewable Energy,” said the alliance’s announcement. To deliver the vision of the North Sea as a green power plant of Europe, the nations committed to the following: Denmark will establish the world’s first multi-phased and largest energy island in the North Sea, with an initial capacity of 3GW offshore wind by 2033 and connections to Belgium and Denmark. Work on preparing the ground for further connections to Germany and the Netherlands has priority. Belgium will establish the world’s first offshore energy island, a hybrid project combining offshore wind generation and cross-border interconnection. Belgium and Denmark will work closely together on hybrid renewable energy projects, including the connection between both the Danish Energy Island and the Belgian Energy Island. Belgium will establish 5.8GW offshore wind capacity by 2030 and 8GW by 2040. Denmark will reach at least 10GW total offshore wind capacity by 2030, with a view towards up to 35GW in the North Sea by 2050 and potentially more, depending on European demand for green power. Denmark and the Netherlands will explore how to connect the energy island in the Danish EEZ to a Dutch energy hub, including perspectives for offshore green hydrogen production. The Netherlands will establish about 21GW offshore wind capacity by about 2030. Germany and Denmark have already developed a first-of-its-kind hybrid offshore wind cooperation project and intend to cooperate on the Bornholm Energy Island in the Baltic Sea, including hybrid interconnections, and will also engage in hybrid renewable energy projects in the North Sea. Germany will establish at least 30GW of offshore wind by 2030, 40GW by 2035 and 70GW by 2045. Together, Belgium, Denmark, Germany and the Netherlands will accelerate and mature ongoing efforts to develop and expand offshore energy as part of an integral vision for the North Sea. The aim of this is to realise a “future-proof offshore energy system” in the North Sea as a first step, by expanding the world’s first energy island to its maximum potential capacity of 10GW by 2040 at the latest. The North Sea Alliance members said they will take all “relevant and appropriate” steps to speed up regulatory and permitting processes to support the projects. The EC is invited to actively support the efforts, while promoting a “balanced co-existence” of renewable energy and a healthy marine ecosystem, they added. “We will continue to collaborate closely with our industries across European borders to realise the full potential of renewable energy in our societies. To support the competitiveness of European industry and reach EU climate neutrality, we will continue to improve energy efficiency through investments and system integration in order to reduce our dependency on energy import, whilst exploring opportunities for diversification based on openness to trade and investments,” concluded the four nations in their joint statement. The construction, energy, marine and renewables insurance markets will have to engage early with this ambitious project. But as discussed this week at Commercial Risk’s Construction Risk Management Conference in London, renewable energy capacity is currently limited. So, this will be another test of the insurance and reinsurance market’s ability to innovate and support the energy transition.

North Sea nations announce ambitious offshore plans to deal with Russia energy risk

Want to read this article?

Read Next

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Claims likely to increase as vessels remain stranded in Baltimore

Climate change to cause ‘massive economic damage’

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Claims likely to increase as vessels remain stranded in Baltimore

Climate change to cause ‘massive economic damage’

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Want to read this article?

Read Next

Munich Re reorganises P&C underwriting in Asia Pacific, Middle East & Africa

Claims likely to increase as vessels remain stranded in Baltimore

Climate change to cause ‘massive economic damage’

Energy insurer Paratus launches brokerage division

Allianz sells its 51% stake in Allianz Saudi Fransi

Related Articles