Europe invests €45 billion in wind power as policy uncertainty clouds growth

11:20

By: Dakir Madiha

Europe invests €45 billion in wind power as policy uncertainty clouds growth

Europe channelled €45 billion into wind energy projects in 2025, installing 19.1 gigawatts of new capacity despite industry warnings that planned EU policy reforms could weaken investor confidence. According to WindEurope’s annual report, total installed capacity reached 304 gigawatts, up from about 285 gigawatts the year before. Germany drove the expansion with 5.7 gigawatts in new installations, including 503 megawatts offshore, while Türkiye, Sweden and Spain followed with significant additions.

Onshore wind grew at record pace, representing roughly 90% of new capacity, while offshore wind suffered from delays, with only 2 gigawatts connected to the grid—the lowest since 2016. The United Kingdom, Germany and France were the only countries to commission new offshore turbines, though WindEurope expects a rebound in 2026 once delayed projects come online. The European Union added 15.1 gigawatts overall, bringing its total capacity to 246 gigawatts. Despite this, wind power’s share of EU electricity demand remained steady at 19%, as weak wind conditions early in the year limited output.

Industry concerns have intensified amid discussions to reform the EU Emissions Trading System and electricity market design. Carbon prices have fallen more than 20% from recent highs, creating uncertainty for operators and developers. WindEurope’s CEO Tinne Van der Straeten urged policymakers not to reopen the market design debate, warning that regulatory instability could slow renewable deployment just as expansion gains momentum.

WindEurope projects Europe will add 151 gigawatts of new capacity between 2026 and 2030, with 112 gigawatts in the EU. That trajectory would lift the bloc’s total to around 343 gigawatts—still short of its 425-gigawatt target. The report highlights persistent challenges, including grid congestion, lagging industrial electrification, and delays in implementing streamlined permitting rules. The European Commission has opened infringement proceedings against 26 EU member states for failing to comply with updated authorization procedures.