NEWS - WIND ENERGY
Global Wind Projects Face Investment Shortfall , EIC CEO Warns
Stuart Broadley warns only 5 % of $ 2 trillion in fixed offshore wind projects have reached final investment decision .
London , Only 5 % of the $ 2 trillion earmarked for global fixed offshore wind projects have reached final investment decision ( FID ) in the clearest sign yet that the current pace of renewable project deployment could potentially stall the progress towards net-zero targets , Stuart Broadley , CEO of the Energy Industries Council ( EIC ), said today . gas revenues while also being the driving force for cleantech provision .
This calls for , according to Broadley , dealing with the energy supply chain as one integrated , rather than following a siloed approach of “ moving from the bad to the good ”, to ensure that companies can carry out business activities across the board in order to be able to survive and thrive through energy transition .
“ Fixed offshore wind projects – already typically very low margin – are being hit by higher costs of capital due to higher interest rates , which has pushed them to zero or negative margins ,” Broadley said . “ So , governments will have to subsidise them again if they want these projects to get moving .”
Speaking today at Recharge and Upstream Energy Transition Forum , Broadley warned that current low FID rates in cleantech , including wind , hydrogen , and carbon capture , are behind what policy pledges demand , which will lead to lower installation rates than currently forecast .
“ The pressure to invest more in energy transition clearly exists , which EIC fully supports , but the reality is that this expectation is not being matched by demand for key technologies like hydrogen , carbon capture , and floating offshore wind , which are in most cases currently not bankable .”
EICDataStream — which tracks over 15,000 projects worldwide , covering all energy sectors — shows the global FID rate for renewable and transition technologies languishes around 5 % or lower , compared to upstream oil and gas , which stands at 33 %, and large-scale nuclear energy at 44 %. EIC is a global trade association and the voice for the energy industries ’ supply chain , being a provider of data , analysis , advocacy , and events .
“ The hesitancy to fully commit financially to renewable projects will slow down progress towards energy transition goals ,” Broadley warned .
In his on-stage conversation with Leia Marie Parker , Editorin-Chief of Upstream magazine , Broadley spoke about the upcoming Conference of the Parties ( COP ). He called for greater transparency at future COP meetings , including COP29 which will be held next month in Baku , Azerbaijan .
Instead of presenting aggregated global progress under the aegis of the global stocktake , he suggested developing a “ league table ” to track each country ’ s advancement against its specific climate goals . This approach , he said , would enable more precise monitoring and encourage nations to uphold their commitments .
Broadley also addressed the relationship between governments and the energy sector . “ Some governments are becoming increasingly unfriendly towards the oil and gas sector ,” Broadley said , adding that they often assume separate , “ bad ” supply chains for oil and gas , and “ good ” for renewables . However , according to the EICSupplyMap database , 80 % of companies in the UK energy supply chain , for example , still rely on oil and
Introducing Bankable Energies 2025 : EIC Launches Global Forum to Drive Investment in the Energy Transition
Leading experts from the world ’ s energy sectors are gathering in London to discuss sustainable investment strategies that will drive the energy transition .
London , The Energy Industries Council is proud to introduce the inaugural Bankable Energies conference , taking place on 26th-27th February 2025 at the Leonardo Royal Hotel , London Tower Bridge . The event brings together top management from industry , policy , investment , and innovation players to debate the direction , opportunities , and challenges in sustainable energy investments .
Bankable Energies 2025 aims to contribute to accelerating the transition to a sustainable future of energy by leading discussions on sustainable investment and facilitating cooperation among major key stakeholders . From insightful discussions and networking opportunities to exclusive roundtables , the conference is fully packed to drive energy projects forward and help global net-zero targets .
An Advisory Board comprising experts and leaders from major organisations guides and advises on the event to ensure it is both insightful and thought-provoking , while also serving as a gateway for making business contacts and exchanging reallife experiences .
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