Floating wind developers pull back due to slow progress and investment hurdles
Published: 21 May, 2025
New research from Westwood Global Energy Group (Westwood), a specialist energy market research and consultancy firm, reveals developers are showing signs of retreat from floating offshore wind as near-term growth expectations fall and confidence dips across parts of the value chain.
The findings come from Westwood’s annual Floating Offshore Wind Survey which polled 166 stakeholders across the global floating wind value chain. This included engineers, product developers, investors, government organisations and the broader supply chain. Results demonstrate that while activity in 2024 – including new leasing rounds and subsidy announcements – suggested positive momentum, delivery delays, investment risk and sluggish policy implementation are prompting a more cautious stance across the industry.
Comparing the results to the 2024 survey, the biggest swing in optimism has come from developers. While they were previously the most optimistic group, they are now the least confident, with 63% feeling less optimistic than in 2024. All other business types also signalled less optimism, with near and long-term growth expectations shifting lower compared to 2024. Notably, 72% of respondents now anticipate less than 3GW of global floating offshore wind capacity to be operational by 2030.
Among the reasons cited for the lack of optimism, the most prominent financial barriers were high upfront capital costs and limited investor confidence in new technology. Among non-financial hurdles, port infrastructure, lack of standardisation of technologies and low government support levels continue to dominate.
Bahzad Ayoub, Manager – Offshore Wind at Westwood, added: “Progress is happening, but too slowly. The frustration across the sector stems from knowing that momentum exists – but the pace is out of sync with expectations. Optimism hasn’t disappeared, but it’s now paired with a grounded mindset. Floating wind must be treated as a distinct sector, not simply an extension of fixed-bottom wind and a majority of respondents think this way. The technology, timelines and investment requirements are different – and government and industry action needs to reflect that.”
Notably, the survey revealed a strong correlation between perceived market leadership and recent government initiatives. The United Kingdom, France and South Korea were identified as the top three countries in floating wind, aligning with the regions where subsidies and policy signals have been most pronounced.
Westwood ran the survey in association with World Forum Offshore Wind, Norwegian Offshore Wind, Oceantic Network and WindEurope. Released today at Norwegian Offshore Wind’s Floating Wind Days in Haugesund, the full results of the 2025 Floating Offshore Wind Survey are available to download here.
https://www.westwoodenergy.com/
