As the global push for renewable energy intensifies, Europe is set to witness a pivotal year in offshore wind development with several tenders planned for 2025. Countries across the continent are making strides in expanding offshore wind capacity, offering opportunities for developers and investors alike. Many of the most significant upcoming tenders are seabed leasing, a combination of seabed leasing and permitting and/or grid, or a mix of all.
2024 was a challenging year for offshore wind – the market shrank on the previous year, with only 2.3 GW capacity installed in Europe. Now, there is a unique blend of skepticism and hope that the market will generate momentum again. With 2025 looking to be a far more exciting year for the wind industry in Europe, let’s take a look at some of the significant developments taking place in the region.
A leading position for Germany
Germany continues steadfast in its mission to solidify its leading position in offshore wind energy, focusing on increasing its capacity through multiple tenders this year. Its tendering process is stable and predictable, which has influenced two major activities in the pipeline - bids being open for sites N-9.4, N-10.1 and N-10.2. These three sites put almost 5GW capacity up for grabs. Germany’s recent tenders have seen the trend of negative bidding, and it will be interesting to observe if this pattern continues to attract bidders.
Germany has always attracted significant interest from major parties, with previously investigated sites like N-9.1 and N-9.2 attracting a EUR 250 million bid, and non-investigated sites like N-11.2 and N-12.3 also attracting EUR 1.9 billion and EUR 1.065 billion respectively. As the country looks to expand its offshore wind capacity capabilities to 30GW by the end of the decade, we will see whether the momentum and attraction of the German market continues.
Developments in Western Europe
In Belgium, progress is being made with the Princess Elisabeth Zone - a key part of the country’s renewable energy transition situated in prime wind resource territory of the North Sea. Part one of this project, Elisabeth I, is a milestone in Belgium’s plan to expand its offshore wind capabilities, building towards 3.5GW of new offshore wind capacity by 2030.
In this first phase 700MW is up for grabs, and two bidder groups have been identified: Group 1, consisting of Ocean Winds, Eneco, and Otary; and Group 2, consisting of EDF, Jan de Nul, and Luminus. Given Belgium’s position as one of the top countries for offshore wind energy generation per capita, and the fact that offshore wind accounts for 10% of the country’s current energy usage, we’re likely to see Belgium’s position in the market remain strong.
Elsewhere in the Netherlands, progress is being made via three significant tenders: Ijmuiden Ver V-VI (Gamma A & B) and Nederwiek I-A, all three of which are opening for bids in July and closing in September. With a capacity of 1GW each, these sites are a part of the nation’s robust offshore wind program that has been meticulously planned to meet ambitious goals. And, given their status having pioneered various offshore wind innovations like floating wind turbines and the integration of offshore sites with hybrid production, the Netherlands is unlikely to decelerate efforts now. 2025 is set to be an exciting year for the country, with new additions to its existing line up of sites like Hollandse Kust Zuid - the world’s largest operational offshore wind farm.
Northern Europe and Baltics
As an early adopter and pioneer of offshore wind, Denmark has been a longstanding player in the sector - a position which is now solidified by a range of ambitious targets such as achieving 100% renewable energy by 2030 and climate neutrality by 2050. To date, Denmark has approximately 2.7GW of installed offshore wind capacity, with offshore meeting 53.4% of the country’s energy needs.
With significant demand and a push to maintain its position as a global leader, Denmark has several tenders planned for 2025, including Kriegers Flak II (1 GW, closing April 2025), Hesselo (800 MW, closing April 2025), Kattegat II (1 GW, closing April 2025) and Bornholm Energy Island (3 GW, bids open July 2025, closing December 2025). However, Denmark’s previous tender saw no bids presented, with multiple factors rumoured to be at play such as lack of take off possibilities, no power to x readiness and including the Danish government’s desire to retain 20% ownership in windfarms built. This year, all industry eyes are watching closely to see whether similar tender conditions remain, or if the government has listened to the industry and changed its approach.
Elsewhere in the region, Finland is putting forward its first major tender (Edith & Ebba - 3 GW seabed leasing) under its new legal framework, signaling a commitment to its growing offshore wind market. It’s a promising move given that all of the country’s offshore projects were cancelled in May 2024 due to issues with the permitting process. In Estonia, Saare 1 is on the table, offering relaunched seabed leasing with three bids from Luxcara, Utilitas, and Oxan Energy. And, in Lithuania, a 700MW is up for tender once again following an unsuccessful first tender attempt.
New activity in Southern Europe
Despite significantly lagging behind its German neighbour, France has made notable progress in offshore wind over the last twelve months, with more activity coming to fruition this year. Several awards are pending this summer, alongside two further awards later on in the year. With over 10 GW on offer across sites AO8, A07 Sud Atlantique, A09 and A010, and a number of overlapping tender award dates, there is strong momentum building in the offshore wind industry in France, even in light of recent government changes.
In Malta, there is a significant focus on floating wind technology, marking a strong start for the country’s reasonably new entry to the offshore wind space. It’s a market off to a strong start too, with bids on a 300MW site closing in June 2025 and awards being announced this December. This site will represent the country’s first offshore wind project.
Anticipated new bids
Despite multiple tenders having been formally announced across Europe for this year, that isn’t to say there aren’t further sites likely in the pipeline. In Norway, the market is highly anticipating a 1.5GW leasing round for SN II Phase 2, and a further expected 1.5 GW floating site Utsira Nord. It is also widely expected that Poland will launch a tender this year and, although no tenders have been officially announced, it would be a key development for a market that is steadily ramping up its offshore wind ambitions.
Similar activity is anticipated in Ireland too, particularly in light of the country’s commitment to renewable energy expansion. O-RESS 2.1 Tonn Nua is expected to open up 900 MW for bids in April 2025, with awards made in September of this year. In Portugal, the market is expecting the leasing round of four locations offering up to 2 GW. And, in Spain, mutterings of an unconfirmed tender are happening across the market, with estimations that this will be open for bids in July.
A year of significant activity
The European offshore wind market in 2025 is set to be a dynamic arena, with established players like Germany, the Netherlands, and (hopefully) Denmark maintaining their momentum, while newer markets like Malta and perhaps also Portugal, Spain and more bring fresh opportunities. Whether through traditional leasing rounds or innovative floating wind projects, these tenders highlight the region’s commitment to renewable energy and its role as a global leader in offshore wind development.
K2 Management has helped many customers prepare winning bids across multiple different markets, both globally and within Europe. Our specialist expertise and knowledge of the European offshore wind sector has seen us help clients with exceptional bid strategies, business case calculations, preparation of tender documentation and bid writing, among other components of this process.
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