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Europe is starting to reach its limit when it comes to wind power.
Countries like Denmark and Sweden, once leaders in expanding offshore wind capacity, are now hitting obstacles as power prices and incentives fall too low to support new projects, according to Bloomberg.
A recent Danish auction for offshore wind saw no bids, highlighting the issue. This slowdown in wind development risks prolonging reliance on fossil fuels, as rising costs challenge the sector’s earlier success in driving down prices.
Denmark, which generated a world-leading 58% of its electricity from wind last year, saw no bids in its largest-ever offshore wind tender. Companies like state-owned Ørsted A/S cited unattractive investment conditions, with low electricity prices driven by an oversupply of wind power.
The Bloomberg report says that Sweden faces similar challenges, as years of rapid wind expansion have depressed returns, discouraging new projects. Delays and cancellations of green industrial projects in the north further cloud future demand.
The UK’s goal to phase out fossil fuels by 2030 will require a major shift in power consumption to align with renewable energy’s fluctuating supply, says the grid operator. Currently, record amounts of wind power are wasted due to grid limitations.
Unlike coal and gas plants, wind farms operate whenever conditions allow, often resulting in excess supply and even negative power prices.
While solar faces similar issues, falling panel costs have lessened the impact. The wind sector, however, is grappling with rising costs for materials like steel and labor. Encouraging consumers to adjust demand—especially with electrification of transport, heating, and industry—could stabilize prices and drive investment in clean energy.
Brian Vad Mathiesen, a professor at Aalborg University in Denmark, commented: “We cannot have an electricity system that’s based solely on wind and solar. There are stark technical and economic limits to how much we can integrate into the grid.”
