Europe will probably miss a target for installing offshore wind power capacity because of a gap in funding, according to researcher Boston Consulting Group.
Developers may not get the 110 billion euros ($144 billion) needed to meet a European Wind Energy Association projection of raising capacity to 40 gigawatts by the end of the decade from about 4.9 gigawatts now, BCG said today, citing a new study.
“Because of the financing difficulties, a slower development of the market and thus an expansion of installed capacity to 25 gigawatts by 2020 seems likely,” BCG said in a statement. “The financing challenge will take time to resolve because capital for a new and risk-laden industry is not readily available, especially in the current macroeconomic climate.”
EON SE, RWE AG and Dong Energy A/S are among developers of offshore projects in U.K. and German waters as the nations seek to cut carbon emissions by using more renewable energy. Germany, set to shut its nuclear reactors by 2022, wants 25 gigawatts of offshore wind by 2030, up from about 280 megawatts now.