Core Viewpoint - Europe, heavily reliant on Russian natural gas, faced a "supply crisis" post-2022, leading to a significant reduction in imports and a surge in energy prices, prompting a shift towards offshore wind energy as a key component of energy sovereignty [2][7][35] Energy Transition Overview - In the early 2000s, Europe's energy transition was centered around natural gas, with its share in the energy mix nearing 25%, while wind and solar energy were less developed [4] - The Russia-Ukraine conflict exposed Europe's dependency on Russian gas, with imports dropping from 150.2 billion cubic meters in 2021 to 51.7 billion cubic meters in 2024, a reduction of nearly two-thirds [7] - Natural gas prices skyrocketed from approximately €20/MWh in 2021 to over €300/MWh in summer 2022, stabilizing between €30-35/MWh, indicating a shift towards local and stable energy sources [9][11] Renewable Energy Growth - In 2023, renewable energy generation in the EU reached approximately 44%, with fossil fuel generation dropping below one-third; wind energy surpassed natural gas for the first time [11][13] - By 2024, fossil fuel generation is expected to decrease to 28.9%, while solar and wind energy will see significant increases, marking a clear transition in the energy structure [14] Offshore Wind Energy Advantages - Offshore wind energy is emerging as a preferred alternative to natural gas due to its higher resource density, stable wind speeds, and better capacity factors compared to onshore wind and solar [16] - A 1GW offshore wind installation can replace approximately 0.8 billion cubic meters of natural gas annually, highlighting its potential impact on reducing gas imports [17] Economic Viability of Offshore Wind - The average cost of offshore wind energy is decreasing, with a projected cost of $0.079/kWh globally and $0.080/kWh in Europe for 2024, making it increasingly profitable [19] - Offshore wind energy has minimal fuel costs and low exposure to external fuel price fluctuations, providing a "de-risking" financial function for governments and households [22] Future Expansion Plans - The global offshore wind capacity is expected to reach 83.2GW by 2024, with Europe accounting for about 36GW, primarily led by the UK, Germany, and the Netherlands [24] - By 2030, Europe aims to increase offshore wind capacity to 111GW, nearly tripling current levels, with significant annual additions planned [30] Challenges to Development - The lengthy administrative processes and insufficient grid capacity pose challenges to offshore wind development, with project timelines often exceeding 7-11 years [27][33] - Financing pressures and supply chain risks are also significant, as the capital intensity of offshore wind projects is high, requiring around €3 billion per GW [33] Conclusion - Despite existing challenges, offshore wind energy has fundamentally changed its role in Europe, becoming a core asset for energy sovereignty, economic stability, and industrial transformation [35]