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Offshore Wind Sector Faces Setbacks As Global Targets Prove Elusive

The global offshore wind industry is grappling with significant challenges threatening to derail ambitious government targets worldwide. A confluence of factors, including soaring costs, project delays, and limited investment, has cast doubt on the sector’s ability to meet its lofty goals, potentially hampering efforts to combat climate change.

Industry Struggles Amid Rising Costs and Delays

Recent data paints a sobering picture of the industry’s current state. Offshore wind farms now face a global average cost of $230 per megawatt-hour (MWh), marking a 30-40% increase over the past two years. This figure is more than triple the average cost of onshore wind facilities, which stands at $75/MWh.

The impact of these escalating costs is evident in the actions of major industry players. BP is considering divesting a stake in its offshore wind business, while Equinor has abandoned investments in Vietnam, Spain, and Portugal. GE Vernova, a leading turbine supplier, has halted new orders due to unfavourable market conditions.

Global Targets Slipping Away

The International Renewable Energy Agency (IRENA) had projected that offshore wind capacity needed to reach 494 GW by 2030 to meet global renewable energy goals. However, IRENA’s Director-General now estimates the industry will fall short of this target by a third. Other research firms suggest that 500 GW of offshore wind installations may not be achieved until after 2035.

Regional Challenges and Political Uncertainties

In the United States, the offshore wind sector faces additional hurdles. Despite ambitious goals set by the Biden administration, the industry has been plagued by project cancellations, suspended auctions, and construction setbacks. The potential shift in political leadership following the recent election has further heightened concerns about the sector’s future.

Europe is also struggling to meet its targets. Major markets like the United Kingdom, Germany, and the Netherlands are expected to achieve only 60-70% of their goals. The European Union as a whole is projected to reach just 54 GW of offshore wind capacity by 2030, falling far short of the 120 GW pledged by North Sea countries.

China: A Lone Bright Spot

Bucking the global trend, China has emerged as a leader in offshore wind development. Backed by government subsidies and access to locally produced components, China accounted for over half of global offshore wind installations in 2023. The country is expected to continue its rapid expansion, with projections of 11-16 GW of annual installations in the coming years.

Industry Calls for Support

As the offshore wind sector navigates these choppy waters, industry leaders are calling for increased government support and policy interventions. While acknowledging the risk of missing targets, experts emphasize that with the right policies in place, the industry can still make significant strides towards its goals.

The coming years will be crucial in determining whether the offshore wind industry can overcome its current challenges and play the pivotal role envisioned in the global transition to renewable energy.

Forbes Middle East Unveils 100 Most Powerful Businesswomen Of 2025

Forbes Middle East has unveiled its much-anticipated 2025 ranking of the region’s top businesswomen, spotlighting influential leaders reshaping industries and driving meaningful transformation. The list was based on business size, individual accomplishments, leadership impact, and corporate social responsibility initiatives.

Top Spot For Hana Al Rostamani

For the third consecutive year, Hana Al Rostamani, Group CEO of First Abu Dhabi Bank (UAE’s largest bank by assets), claims the top position. In addition to retaining her position in the Forbes Middle East ranking, she was also featured on Forbes’ 2024 list of the World’s Most Powerful Women, securing the 60th position globally. Under her leadership, the bank achieved an impressive $3.5 billion in net profits and $334.8 billion in assets in the first nine months of 2024.

Rising Stars In The Top 10

Shaikha Khaled Al Bahar of NBK Group and Shaista Asif, cofounder and Group CEO of PureHealth Holding, take the second and third spots respectively, completing the top three.

The top 10 remains largely unchanged from last year, with Tayba Al Hashemi of ADNOC Offshore, Alisha Moopen of Aster DM Healthcare GCC, and Suzanne Al Anani of Dubai Aviation Engineering Projects (DAEP) making their debut in the top 10. In total, 27 new leaders have joined the list this year.

A Diverse And Powerful Group Of Women

This year’s list features 100 women from 32 sectors and 29 nationalities, underlining the diversity of talent driving the region’s progress. The banking and financial services sector leads with 25 entries, followed by healthcare and technology with nine each, and venture capital with five. Remarkably, 40% of the top 10 women are from the banking and financial services sector. Notably, Shaista Asif (PureHealth Holding) and Alisha Moopen (Aster DM Healthcare GCC) are the only non-Arab women in the top 10.

UAE Leads With 46 Leaders

The UAE continues to dominate, with 46 of the women on the list hailing from the country, solidifying its status as a global business hub. Egypt follows with 18 influential women, and Saudi Arabia claims nine entries. Egyptians lead in representation, followed by Emiratis and Lebanese women.

Empowering Women Through Initiatives

Several of the leaders have focused on upskilling and creating opportunities for women. Susana Rodriguez Puerta launched the ‘sAIdaty’ initiative in collaboration with the Dubai Business Women Council, aimed at providing 500 female council members in the UAE with AI skills. Similarly, Lamia Tazi of SOTHEMA collaborated with the Foundation for Research, Development, and Innovation in Science and Engineering to provide scholarships to PhD students from low-income backgrounds.

Click here for the full list.

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