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EU’s Wind Capacity Growth Falls Short Of Climate Goals

Despite wind power providing 20% of Europe’s electricity in 2024, the European Union is lagging behind in building the wind energy infrastructure needed to meet its ambitious 2030 climate and energy targets, according to industry group WindEurope.

Key Insights

  • Insufficient Capacity Growth: Europe added 15 gigawatts (GW) of new wind energy capacity in 2024, comprising 13 GW of offshore and 2 GW of onshore wind.
  • Shortfall Against Targets: The EU contributed 13 GW of this total but needs to build at least 30 GW annually to meet its 2030 goal of wind power accounting for 34% of electricity consumption. The target rises to over 50% by 2050.

Challenges Hindering Progress

  1. Permitting Issues: Many EU governments are failing to implement streamlined permitting processes, delaying project approvals.
  2. Grid Connection Bottlenecks: Infrastructure and logistics challenges have slowed the connection of new wind farms to the grid.
  3. Economic Electrification Lag: Europe’s transition to an electrified economy is not progressing quickly enough to integrate the growing wind power capacity.

Industry Context

The offshore wind sector has faced significant hurdles, including higher component costs, logistical complexities, and permitting delays. Investments in offshore wind projects have slowed, and final investment decisions remain challenging for many companies.

“Europe is not building enough new wind farms. For 3 main reasons: a) most governments are not applying the good EU permitting rules; b) new grid connections are delayed; c) Europe is not electrifying its economy quickly enough,” said Giles Dickson, WindEurope’s CEO.

To achieve its targets, the EU must address permitting inefficiencies, accelerate grid upgrades, and drive electrification across its member states. Without immediate action, Europe risks missing its climate goals and falling behind in the global energy transition.

Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.

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