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GLEG UK Energy Market Update…
February 17, 2025As the UK’s offshore wind sector matures, the conversation is shifting towards what happens when wind farms reach the end of their operational lifespan. With an average lifespan of 20 to 25 years, many of the UK’s earliest offshore wind projects are now approaching this critical phase. By 2035, over a third of the country’s offshore wind farms will have reached this milestone, raising vital questions about decommissioning, repowering, and the long-term future of renewable energy in the UK.
Since 2003, the UK has installed 14.7GW of offshore wind capacity, and wind energy now provides close to 30% of the country’s electricity. However, a recent report from RenewableUK warns that without clearer end-of-life policies, the UK could lose up to 5GW of offshore wind capacity by 2035—enough to power nearly four million homes.
The report, Developing Effective End-of-Life Policy Frameworks for UK Offshore Wind, highlights five key challenges that need urgent attention:
- Decommissioning – Ensuring a responsible and sustainable process for retiring ageing infrastructure.
- Financial Assurance – Defining the financial responsibilities associated with decommissioning and repowering projects.
- Lifetime Extension – Evaluating whether existing wind farms can continue operating beyond their original design life.
- Repowering – Upgrading existing sites with modern, more efficient technology to optimise seabed resources.
- Offshore Transmission Ownership – Establishing a clear framework for managing transmission assets at the end of a project’s lifecycle.
This report comes at a crucial time, as the UK Government seeks to accelerate its transition away from fossil fuels. However, uncertainty surrounding policy direction, along with external geopolitical factors, could impact investment confidence in the sector.
Meanwhile, new research by climate advocacy group Uplift suggests that the UK’s North Sea oil and gas companies are not sufficiently investing in renewables. Of the 87 offshore oil and gas firms operating in the region, only seven are expected to invest in renewable energy by 2030.
The UK’s energy transition is at a crossroads. To maintain momentum, the government must provide clear policy direction on offshore wind decommissioning and repowering. Without decisive action, the UK risks losing critical renewable energy capacity, undermining net-zero targets and energy security.