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Octopus Energy plans to lead investments worth $20 billion (£15 billion) into offshore wind power projects globally by 2030, the generation arm of the UK energy firm said on Monday.
Octopus Energy said its plans “to unleash” $20 billion in investments into offshore wind would go towards the generation of 12 gigawatts (GW) of renewable electricity a year, enough to power 10 million homes.
Octopus is targeting projects globally, with a focus on Europe – and already has several deals in the pipeline. The company plans to back developers of new offshore wind farms, as well as wind farms that are already under construction or operational.
Octopus Energy also backs Simply Blue, a company developing floating offshore wind projects.
“We’ve got big plans to invest in even more of these big fans to help wean ourselves off polluting gas,” Zoisa North-Bond, CEO of Octopus Energy Generation, said in a statement.
“Offshore wind will undoubtedly continue to play a pivotal role in meeting net zero, boosting energy security and driving down bills.”
However, offshore wind project costs have soared in recent months, to the point of prompting some developers to reconsider their offshore wind investments.
Last week, Swedish utility Vattenfall said it was halting the development of a major offshore wind power project in the UK due to surging costs and challenging market conditions pressuring new developments.
Vattenfall will not proceed with the development of the 1.4-gigawatt (GW) Norfolk Boreas offshore wind project as the offshore wind industry has seen cost increases by up to 40%, the company said in its Q2 results release on July 20.
“Although demand for fossil-free electricity is greater than ever, the market for offshore wind power is challenging. Higher inflation and capital costs are affecting the entire energy sector, but the geopolitical situation has made offshore wind and its supply chain particularly vulnerable,” President and CEO Anna Borg said.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.