Europe is experiencing a remarkable surge in solar installations, particularly in rooftop solar, which constitutes 70% of all new installations. Germany is leading the way with an anticipated 84% annual growth rate this year, reaching a record high of 13.5 GW of total solar PV capacity.
Other emerging markets in this solar boom include Poland and the Netherlands, both driven by rooftop installations. Europe’s commitment to clean energy and the ease of deploying solar photovoltaic technology on rooftops have fueled this trend.
On the other hand, wind energy, both onshore and offshore, is facing challenges, including permitting issues, rising costs, and project delays. These hurdles are causing a slowdown in wind energy growth and causing countries like the UK and Denmark to miss their targets. The onshore wind sector is experiencing an estimated 11% drop in new installations due to factors like inflation, permitting bottlenecks, and rising supply chain costs.
Offshore wind capacity is expected to grow by only 2% in 2023 because of delays in key projects, rising development costs, difficulties in securing offtake deals, and regulatory changes. The UK and Denmark are likely to miss their 2030 offshore wind targets, reaching slightly below their goals.
Despite these challenges, the offshore wind sector remains resilient. France, a newcomer to the industry, has entered the field with offshore wind facilities. Additionally, Equinor’s 88 MW Hywind Tampen, the world’s largest floating offshore wind farm off the coast of Norway, began operations, marking a significant technological advancement.
For both solar and wind energy, the evolution of the renewable energy landscape presents challenges and opportunities as Europe strives to decarbonize while maintaining a stable energy supply. The offshore wind sector’s future growth depends on overcoming hurdles in project development, permitting processes, and ongoing investment in research and development to ensure affordability and efficiency.