LSP's Quarterly Directors Report Q1 2025🔔

Welcome to the first edition of the LSP Renewables Quarterly Directors Report for 2025, an opportunity to reflect on Q1 and share our findings and market insights.

Fresh from attending the first big event to kick off conference season, Wind Europe 2025 Copenhagen – Global Sales Director Seth Hunt is back to share some insights on current affairs across the renewable energy sector.

Starting With The Positives

UK Wind: A record year for wind! Wind was the major contributor as for the first time over a four-quarter period, energy provided by renewable sources achieved over 50% of electricity consumed in 2024.  Wind energy projects hit a record high of 83 terawatt-hours (TWh) across the UK.

UK Solar: Despite diminished average sun hours compared to previous years, 2024 saw a record for solar output because of increased deployment in the sector.

Europe – The European Commission recently announced a record high of 47% of net energy generated in 2024 was supplied by renewable energy sources.

Global – Renewable energy globally hit record highs in 2024 with annual growth of 15.1%, reaching a total output of 4,448 GW – 5,000 GW is within sight.

Despite these steps, most countries are falling drastically short of their 2030 climate goals.

Unlock The Grid!

Energy policy reforms aim to break the bottlenecks that are suffocating the industry. I have the privilege of speaking with many leaders across the renewables sector and always attempt to understand the issues they face on the ground at project level. I truly admire all the resilient professionals who are working to overcome challenges and roadblocks put in their way. Below shows the steps the UK are taking to address these challenges at a local level. Similar reforms are necessary and taking place in many countries to maximise their capacity potential.

• As of 29th January 2025, the National Energy System Operator (NESO) opted to pause new grid applications in an effort to reform the process and raise the bar – ensuring only projects in a position to execute are awarded connection. Today, 15th April 2025 reports have confirmed Ofgem will back these reforms, which will fast-track viable projects and weed out so-called ‘zombie’ projects. Big news and a positive step forward.
• CfD Scheme Reforms: The UK government has proposed reforms to its CfD scheme to accelerate the development of green energy projects, particularly offshore wind farms. Proposed changes include relaxing eligibility criteria for planning consent for fixed-bottom offshore wind and extending the CfD contract term beyond 15 years. The government plans a new CfD auction round (AR7) later this year.
• The DESNZ (Department for Energy Security and Net Zero) is implementing reforms in 2025, primarily focused on streamlining clean energy projects and ensuring a robust energy grid for the future. These reforms aim to accelerate the transition to renewable energy, enhance energy security, and potentially lower energy costs.
• National Grid are investing significant resources and have put action plans in place to facilitate the improved reforms once they are approved.

Straying into political territory here – is it possible for the current government to take a stronger stance on energy reform? Do we have true leaders in place who will make the tough decisions now to accelerate reforms, taking the decision out of the general public’s hands, which will pay dividends to communities and the average household consumer in the years to come? Or will they simply follow the rules of the past and take a small-risk, small-reward approach? Can reforms be fast-tracked rather than getting stuck in parliamentary purgatory?

I can say with certainty that dozens of viable projects are ready to be delivered by highly motivated and vastly experienced teams of renewable energy professionals. We need to relentlessly push governments to action change now and set an end date for these reforms to be implemented. Lack of action is conscious non-action.

Supply Chain Diversification

In my Q1 2024 Director's Report (recommended reading), I posed the question:

‘Is it time to globalise the supply chain to accelerate the energy transition in Europe?’

To be clear, I am in favour of a competitive, safe, and sustainable marketplace where the end result is an increase in projects delivered that positively affect CO₂ emissions.

I am pleased to see the continual increase in the diversity of the renewable energy supply chain – becoming more inclusive and international. Creativity, innovation, and entrepreneurship have been cornerstones of the industry since its origins. Utilities, developers, and asset owners should embrace challenging the status quo and look further afield for more cost-effective supply options to deliver their projects.

Offshore Heritage

Pleased to see the comeback of historic offshore wind markets – Denmark, Netherlands, UK, Germany and Belgium. While our industry needs new market development, diversification, and energy reform, it is great to see renewed vigour and appetite in historic offshore wind markets. This should provide not only increased renewable energy output but stable and long-term job opportunities – much needed in the offshore wind sector, in stable markets with a proven track record in delivering projects.

• Germany – With a current pipeline of projects at various stages, Germany has committed to awarding a further 12 GW over the next 4 years.
• UK – Steady stream of projects lined up over the coming years. AR7 is looming on the horizon.
• Denmark – With a strong pipeline of projects in the hands of reliable and ambitious owners, Denmark continues to lead offshore wind dominance in the North Sea. Denmark’s auction reforms should mean even more positive news to come for offshore, after recent auction disappointment.
• Belgium – After a quiet few years, Belgium is poised to re-enter the offshore wind market with a 700 MW auction round in the Princess Elisabeth Zone. This will be a highly competitive tender round that will reinvigorate this historic offshore wind market.
• Netherlands – Ambitious targets of 21 GW offshore wind by 2032, with current installed capacity at 4.5 GW. The Dutch certainly have big plans, aiming to kick off a 3 GW tender round in Q3 this year.
• France – Although not a historic superpower in offshore wind terms, France is on a steep trajectory with huge ambitions set to meet 2035 and 2050 climate targets. The government is setting in place radical plans to halve the time frame of offshore wind farm development to execution – from 12 to 6 years – to meet said goals. Ambitious indeed, and we can hope other governments follow suit.

New & Emerging Markets

With an eye to the future, 2025 and the remainder of this decade will see the exploratory development of offshore wind in a variety of new market locations across the globe, including: Azerbaijan, Brazil, Canada, Colombia, Greece, India, Oman, the Philippines, Sri Lanka, and Trinidad and Tobago.

Restructures

If 2024 was the year of consolidation, 2025 is the year of restructures. With “best-for-business” decisions made by global oil giants and heightened scrutiny on continued investment in seemingly indefinite offshore wind development pipelines, many organisations are going through rigorous restructuring.

The aim: to scale back portfolio growth, tighten up resources and responsibilities, and streamline processes and strategies in support of more advanced projects – those more likely to result in installed capacity.

As a result of these restructures, an abundance of offshore wind resources have become available to the market – looking for new opportunities and stability until markets recover.

Candidate Advice

In offshore wind, there has been a noticeable and sustained trend over the past 18 months toward safety in projects rather than companies. This trend is increasing while corporate restructures dominate the current landscape. Developers and corporate entities will recover, and with the global emissions targets to be achieved, change could come sooner than you think.

There are many possibilities to ensure the progression of your career, including: long-term project work, relocation opportunities, diversifying into new and emerging renewables sectors, aiding energy transition in new markets, and seeking to assist government reforms and improvements in grid capacity.

To discuss these options further, please feel free to reach out to one of LSP Renewables’ recruitment experts for advice and market insight.*

*contact details outlined at the bottom.

As a global renewable energy community, we are making progress – but not fast enough.

In summary, to use a well-known recruitment saying: ‘Time kills deals.’ Perhaps global governments can heed this advice.

Stay relentless in your contribution to renewables!🌍🍃♻️

If you have any queries regarding the information in the above article, please do not hesitate to reach out to Seth Hunt.

Email: seth.hunt@lsprenewables.com

Phone: +44(0)7407 790 498

LinkedIn: Connect Here.

Contact LSP Renewables

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