Marine renewable energy includes offshore wind energy and ocean energy and other sources of ocean energy, two green energy resources that are key to the EU’s ambitions to decarbonise its energy sector.
The most consolidated marine energy sector is the offshore wind industry, where bottom-fixed offshore technology still represents the majority of projects, but there is a trend towards floating offshore technologies, with less impact on the seabed.
Ocean energy is a promising sector, where the EU has shown a leading role in technology development.
EMODnet Map wiever allows to see the distribution of plants in Europe.
Offshore wind energy is currently the only commercially deployed marine renewable energy with wide-scale adoption. From only a small number of demonstration plants[1]in the early 2000s, the EU now hosts a cumulative capacity of 18.9 GW of offshore wind, spread across 11 countries[2].
For the purpose of this analysis, the offshore wind energy sector includes the following sub-sectors:
- Production of electricity: operation of generation facilities that produce electric energy;
- Transmission of electricity: operation of transmission systems that convey the electricity from the generation facility to the distribution system;
- Distribution of electricity: operation of distribution systems (i.e., consisting of lines, poles, meters, and wiring) that convey electric power received from the generation facility or the transmission system to the final consumer;
- Trade of electricity: sale of electricity to the user- activities of electric power brokers or agents that arrange the sale of electricity via power distribution systems operated by others- operation of electricity and transmission capacity exchanges for electric power.
Note that the sub-sector Trade of electricity was not included in the previous analyses and therefore figures of previous years may differ.
Employment: The top contributors were Germany with 67% (16 800 persons), followed by the Netherlands at 13% (3 400 persons), Denmark at 12% (3 000 persons), and Belgium at 8% (2 100 persons) in 2023. The distribution of employment across activities saw 50% of workers in the production, 21% in the distribution, 16% in the trade, and 12% in the transmission of electricity.
Gross value added: The top contributors in 2023 were Germany with 59% (EUR 4.6 billion), the Netherlands at 17% (EUR 1.4 billion), Denmark at 13% (EUR 1 billion), and Belgium at 11% (EUR 0.8 billion). Production of electricity accounted for 47% of the GVA, trade for 25%, distribution for 17% and transmission for the remaining 12%.
The employment data in the wind energy industry ecosystem varies across different sources, which typically include different activities along the chain. Whilst Figure 2 provides data on employment in the offshore wind sector for the production, transmission, distribution and trade, it does not report a comprehensive quantification of the total offshore wind employment since other crucial activities, such as manufacturing of components, are not considered due to lack of data.
A study published in 2025 by WindEurope estimated that the offshore wind energy sector provided 49 400 direct jobs and an additional 46 600 indirect jobs. The geographic scope of this study was large, covering all of Europe (in addition to EU and the UK, other countries with significant wind deployments such as Norway and Türkiye were also included). Using the ratio of offshore installed capacity in the EU compared to the total offshore capacity in Europe, this is equivalent to about 27 800 direct jobs and 26 200 indirect jobs in the EU.
A different estimate is provided by 4c Offshore, which adapts and extends calculations made by Deloitte for etipwind.eu. As presented in Figure 3, the offshore wind industry supported approximately 47 000 full-time equivalent (FTE) jobs in the EU in 2024, with 28 000 being direct jobs. Notably, this estimate is also based on the relative proportions of annual installation activity and cumulative installations, similarly to the methods used by WindEurope.
The European offshore wind sector has undergone significant transformation over the past decade and a half, driven by a combination of technological innovations, economies of scale, and supportive policies. As a key component of the EU energy mix, offshore wind has benefited from the experience and expertise gained in the onshore wind sector, as well as from the development of new technologies and practices. With its vast potential for power generation, offshore wind is now poised to play a vital role in helping the EU achieve its climate and energy goals, including the transition to a carbon-neutral economy.
The European Union maintains ambitious targets for offshore wind, aiming to deploy approximately 111 GW by 2030 and 317 GW by 2050, which will contribute to achieving 42.5% of total energy consumption from renewables by 2030. To ensure the supply chain can actually deliver on these demands, the EU has shifted its focus from setting goals to aggressively protecting European manufacturing. With the Net-Zero Industry Act (NZIA) now in active implementation, Member States are enforcing strict resilience criteria in renewable energy auctions. Building directly on this foundation, the European Commission introduced the Industrial Accelerator Act (IAA) in early 2026. This new legislation mandates "Made in EU" procurement quotas, fast-track permits for industrial clusters, and screens foreign investments to prioritize domestic production. By pairing ambitious deployment targets with this assertive industrial policy, the EU is positioned to meet its offshore wind goals while guaranteeing that the clean energy transition is built by European industries.
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By the end of 2025, the cumulative installed capacity for offshore wind in the EU had reached approximately 21.6 GW. In 2025, the EU saw an increase of 916 MW in newly connected capacity. The additions were located in Germany (508 MW) and France (408 MW). Additionally, France saw progress in innovative technologies, with 30 MW of floating offshore wind capacity installed and currently partially connected. Although the EU had experienced a rebound in activity in 2024, 2025 experienced a relative slowdown in offshore wind deployments, which was the lowest since 2016 due to broader construction and grid delays.
European-headquartered turbine manufacturers maintain a leading position in the EU offshore wind market, accounting for 96% of all newly deployed offshore capacity in 2024. This strong domestic presence grew in 2025, with 100% of all new offshore installations within the EU being supplied by local manufacturers. The 2025 deployment was driven entirely by key European players that supplied the turbines for all newly connected projects across Germany and France. This consistent utilization of the domestic supply chain highlights the capabilities of the European manufacturing sector. This established market presence also aligns with the strategic objectives of the Net-Zero Industry Act and the newly proposed Industrial Accelerator Act.
Floating wind energy is an emerging sector within the offshore wind industry that is progressing steadily toward commercial viability. Floating wind enables deployment in deeper water compared to bottom-fixed turbines, increasing the potentially available marine space and wind resources. This is particularly attractive for Member States whose deep-water seas (over 50 m) have so far limited the deployment of conventional fixed bottom offshore wind energy. Several projects are already operational, and many are planned for the next few years.
Technological differences between projects are mainly linked to the floating structure. Most projects use semi-submersible floater technologies, while fewer projects use spar-buoy, barge, tension-leg platforms or semi-spar floater technologies. Semi-submersible and spar-buoy technologies have already reached the Technology Readiness Level (TRL) 8-9, while the Floatgen pilot project in France upgraded the concrete barge technology to TRL 7-8. Tension-leg platform technology is tested with a prototype (TRL 6) launched off the coast of Canary Islands, the PivotBuoy project by X1 Wind.
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Current floating wind energy projects in the EU account for approximately 54 MW of operating capacity, with an additional 35 MW currently underway in France. Looking at the broader European context, one of the world's first full-scale floating wind turbines was the 2.3 MW UNITECH Zefyros project, installed in Norway in 2009. Within the EU, early testing included Sweden's 30 kW SeaTwirl S1 prototype in 2015, later followed by the Floatgen project in France with a 2 MW capacity, which became operational in 2018. The sector subsequently scaled up with the 25 MW WindFloat Atlantic project in Portugal, fully commissioned in 2020, as well as Norway's 3.6 MW TetraSpar demonstrator in 2021. More recently, in 2023, Spain deployed a 2 MW twin-hull concrete barge project, DemoSATH. In France, the floating sector continues to mature: the 25.2 MW Provence Grand Large project reached full commissioning in mid-2025, while the 30 MW Golfe du Lion pilot farm and the 5 MW EOLINK demonstrator are actively under construction.
Multiple auctions planned in France, Spain, Italy, Portugal, Greece and the UK demonstrate Europe’s steady development of floating wind (see Table 1). Installed capacity is expected to grow towards 3 GW by 2030 and over 40 GW by 2040. Floating wind is also expanding worldwide, with an installed capacity expected to reach almost 7 GW by 2030 and over 70 GW by 2040. A summary of floating Offshore Wind Projects Auction price and status in European waters is presented in Table 1.
| Country | MW | Year | Auction, Price, Status |
| France | 270 MW | 2024 | AO5: Awarded to BayWa r.e., Elicio’s Pennavel project in Sud de la Bretagne I Price: EUR 86.45/MWh |
| 2 x 250 MW | 2024 | AO6: Two projects in the Mediterranean façade awarded to Ocean Winds, Caisse des Dépôts for Project 1 (Narbonnaise I) and Maple Power, EDF for Project 2 (Golfe de Fos I) Average Price: EUR 89.3/MWh. | |
| 2.2–2.9 GW, including floating | 2025 | AO9: 12 candidates, including the winners of AO5 and AO6 were shortlisted to participate in the tender. Between 1.2 and 1.65 GW will be to extend the floating projects awarded in both AO5 and AO6. | |
| 9.2 GW, including floating | future | AO10: In October 2024, plans outlined for at least two future tender rounds. The tenth round includes five projects, three of which are floating projects totalling 5.2 GW. | |
| 6.3 GW mix of fixed and floating | future | AO11 and beyond: Four separate zones, totalling 6.3 GW will be launched in one or more subsequent tenders for projects to be commissioned by 2040 but the foundation types are not yet specified. | |
| Greece | 1.9-2.5 GW | 2027 | Aiming to launch the first auction in 2027 for a capacity between 1.9 and 2.5 GW spread across six sites, all floating. |
| Italy | Undecided | 2027 | In December 2024, the Ministry of Environment and Energy Security (MASE) approved the operating rules for the new state aid scheme, FER 2 which allocates 3.8 GW between 2024 and 2028 for offshore wind projects 12 NM from shore for EUR 185/MWh. |
| Malta | 280-320 MW | 2026 | In December 2024, the Maltese government launched prequalification for an auction covering one floating wind farm with a capacity between 280 and 320 MW beyond Malta’s territorial waters, in its Exclusive Economic Zone (EEZ). As of July 2025, there were three complete submissions, which are now being evaluated. |
| Spain | Future | After approving its new framework in September 2024, Spain still needs to release the regulatory implementation details. Two ministerial orders, separated by a consultation phase, are required before the launch of Spain’s first auction. | |
| Portugal | Future | In January 2025, the Council of Ministers approved a resolution to the ‘Allocation Plan for Offshore Renewable Energy’ (PAER), which defines the areas to be explored for offshore wind and automatically updates the maritime spatial plans (PSOEM). However, in March, the minority government lost a vote of confidence, and a snap election is expected in May, likely delaying legislation for the prequalification phase and the auction launch. | |
| Norway | 1.5 GW | 2025 | 2025: The Utsira Nord auction continues to face delays due to the EFTA Surveillance Authority (ESA) asking questions of the Ministry of Energy. Recently, the Secretary of State, Astrid Bergmål stated the auction is just around the corner, but the award may be after the election in September. |
| UK | 0.03 | 2022 | AR4: TwinHub, in the Celtic Sea, secured a CfD for £87.3/MWh (in 2012 prices) for 15 years. |
| 0 | 2023 | AR5: No bids due to low ceiling price set in the auction. | |
| 400 | 2024 | AR6: Green Volt (560 MW) acquired a 400 MW CfD in the round with a target commissioning (tax) year of 2028/29. | |
| Undecided | 2025 | AR7: Introduces a new Clean Industry Bonus (CIB) to help develop the local supply chain. Floating will have a guaranteed (but not revealed) minimum to this bonus. | |
| Undecided | 2026 | AR8: Floating expected but no further information available | |
The Levelised Cost Of Energy (LCOE) of floating wind is currently higher than that of bottom-fixed wind. This is partly due to the more intensive manufacturing and engineering requirements but also due to low-deployment levels which have restricted economies of scale and learning opportunities to date. Additionally, multiple competing floating substructure technologies are in development, preventing standardisation. The commercialisation of floating wind has moved from a pre-2030 to a mid-2030s timeframe.
The LCOE is also more project-dependent. For the years 2020-2023, LCOE ranged between 145 EUR/MWh (Hywind Tampen project in Norway) and 350 EUR/MWh (Fuyao project in China), with WindFloat Atlantic in Portugal at an intermediate LCOE of 240 EUR/MWh[3]. A clear understanding of the LCOE of floating wind is challenging due to the limited deployments and high variance in offtake contracts[4].
Market Attractiveness and Auction Outcomes
Comparing the results of different offtake auctions is similarly challenging because no two jurisdictions or auctions are the same. Even small differences can have significant impacts on the perceived, or actual, costs, benefits, and risks for participants in the auction. Examples of factors influencing volume and prices awarded at offshore wind auctions are summarised in Table 2.
| Market Context | Qualification Criteria | Evaluation Criteria | Contract |
Energy policies Legal framework for permitting and building projects Industrial strategy | Required technical and financial capacity Track record Required project development status (lease agreement, grid agreement, permits) Project design Bid bond | Price: Non-price (can be qualitative or quantitative): Socio economic costs and benefits | Structure: Contract for difference Length of contract (15, 20, 25 years |
Despite these contextual differences, recent data from European pilot projects consistently reflect a high-cost environment. For instance, French developments like the 30 MW Golfe du Lion and 25.2 MW Provence Grand Large projects have secured regulated revenue support at 240 EUR/MWh to remain viable, while smaller demonstrators like the 5 MW EOLINK receive support of around 171 EUR/MWh. These high break-even prices are driven by the intense capital expenditures (CAPEX) required at the pilot stage, which currently span from roughly €4.4 million to nearly €12 million per installed megawatt, highlighting the premium currently required to advance the floating supply chain.
Final Investment Decisions
Emerging from COVID-19, the wind energy sector faced global supply-chain shortages, logistical challenges, and rising energy costs, which were further exacerbated by broader geopolitical instability. High inflation, tight supply chains, and rising interest rates disproportionately impacted the capital-intensive wind market, eroding the business case for many projects. This culminated in a severe contraction in 2022, with global Final Investment Decisions (FIDs) plummeting to multi-year lows across all major regions.
However, the market rebounded dramatically in 2023, driven almost entirely by Europe. European FIDs surged to a record-breaking 9.4 GW, pushing global investments well past pre-pandemic levels. Yet, the subsequent years revealed a highly volatile and regionally uneven recovery. In 2024, European FID volumes dropped significantly, but the global total was sustained by an unprecedented spike in the Americas, which rapidly accelerated to over 4.3 GW. This momentum in the Americas proved fleeting; by 2025, U.S. project‑level investment decisions had fallen sharply amid significant changes in federal policy. New executive actions that delayed wind‑permit approvals and temporarily paused offshore leaseissuances, along with adjustments to certain subsidy programs, contributed to a slowdown in the region’s project pipeline. Consequently, Europe stepped back in to reclaim market leadership with a 6.1 GW rebound.
This whiplash effect with massive, isolated spikes alternating between continents—masks underlying vulnerabilities (Figure 4). Despite the overall recovery in global volumes, the abrupt halt in the Americas in 2025 and Europe's fluctuating totals underscore that developers are still struggling to navigate the new risk and cost environment.
Offshore Grid Development
The European Union’s push to integrate over 350 GW of offshore renewable capacity by 2050 is anchored by a progressive legislative framework that shifts focus from isolated national projects to interconnected maritime grids. The foundational vision was established in the EU Strategy on Offshore Renewable Energy, which first outlined the critical need to transition from simple, single-country radial connections to complex, meshed "hybrid" grids. This strategy emphasised that achieving climate neutrality requires offshore infrastructure that simultaneously brings wind power to shore and interconnects the wholesale electricity markets of neighboring Member States.
To enforce this, the EU implemented the revised Trans-European Networks for Energy (TEN-E) Regulation, which serves as the primary legislative backbone for cross-border energy infrastructure, granting priority funding status and streamlined permitting to designated offshore grid corridors. Crucially, Article 14 of the TEN-E regulation mandates the creation of Offshore Network Development Plans (ONDPs). Developed by ENTSO-E, these legally required plans act as the practical blueprints, translating high-level political capacity targets into concrete, pan-European hardware routing requirements for each major sea basin.
Building infrastructure that crosses maritime borders introduces massive financial and regulatory complexities, which newer, targeted policies aim to resolve. To address supply chain, local opposition, and financing bottlenecks, the Commission launched the EU Action Plan for Grids. Building on this, the recent Guidance on collaborative investment frameworks for offshore energy projects provides Member States with the necessary regulatory parameters to conduct complex cost-benefit analyses. This guidance ensures that funds required for hybrid offshore projects are shared fairly among participating countries based on the exact economic and energy security benefits each receives.
Ocean energy projects employ a range of technologies that harness tidal, wave, ocean thermal energy conversion (OTEC), and salinity gradient from the oceans. These projects attract public and private investments, with some of the more advanced projects reaching high TRL and LCOE slowly approaching those of more established offshore energy sectors (e.g. offshore wind). Notwithstanding the substantial investment in ocean energy, the commercial viability of this sector remains hindered by numerous obstacles that impede the widespread adoption of ocean energy technologies, such as the considerable upfront costs, the technological uncertainties and the evolving regulatory framework.
The 2020 EU Strategy on offshore renewable energy aims to increase the contribution of ocean energy to the EU’s offshore installed capacity targets, from 1 GW in 2030 to 40 GW in 2050. This has been further strengthened under the European Green Deal, in particular, through the 2023 Communication on Delivering on the EU offshore renewable energy ambition, according to which Member States aim to achieve 111 GW of offshore renewables by 2030, nearly twice as high as the ambition set in 2020. In 2024, the Net-Zero Industry Act identified offshore renewable technologies, including ocean energy, as “strategic net-zero technologies” and introduced measures to scale up manufacturing, accelerate permitting, and support supply chains.
Current technologies
Tidal energy Tidal energy is harnessed by converting the natural movement of the tides and the rise and fall of sea levels. It is the first of the ocean energy technologies to have been implemented at a large scale, with barrages in France (1966), China (1975, 1985) and South Korea (2011). TThese barrages make use of tidal range technology, which captures the potential energy stored between a basin and the external sea. While tidal range projects are commercially viable – thanks to their similarity with the hydropower sector – the deployment of such facilities has been limited by the availability of suitable locations and by the significant local environmental impacts. New technologies have emerged as an alternative, exploiting tidal stream rather than tidal range. These tidal stream technologies, which include horizontal axis turbine (TRL 9), tidal kite (TRL 9), enclosed tips (TRL 7), vertical axis turbine (TRL 7), undulating membrane (TRL 7) and oscillating hydrofoil (TRL 6), are being continuously tested and refined, with ongoing efforts to improve scalability and reduce costs.
Recently, Seaqurrent demonstrated its TidalKite system (TRL 6) in the Dutch Wadden Islands in 2024, followed by a freshwater‑environment test in 2025. Looking ahead, three additional tidal turbines are scheduled for deployment in 2026 at the Paimpol‑Bréhat and Bordeaux test sites in France. This rollout supports theFrench Government’s Multi‑annual Energy Programme (PPE) for 2026, which aims to award 250 MW of tidal‑energy capacity by 2030.
Wave energy
Harnessing the surface motion of ocean waves, wave energy technologies include oscillating water column (TRL 9), point absorber (TRL 9), oscillating wave surge converter (TRL 8), overtopping (TRL 8), attenuator (TRL 8), pressure differential device (TRL 7), rotating mass (TRL 7) and Archimedes screw (TRL 6). Some of these technologies have been installed and operated in Spain and Italy (oscillating water columns) and in Portugal and Sweden (point absorbers); others are being tested in the UK (point absorber and attenuator system) and in France and Italy (oscillating surge converters).
Recent developments in wave‑energy technology have accelerated across Europe. In 2024, Seaturns successfully built and tested anew point‑absorber (TRL 6) in France, marking a significant step toward commercial readiness. Meanwhile, the Dutch firm Wavepiston completed the installation of its oscillating‑wave surge converter (TRL 8) on the Oceanic Platform in the Canary Islands, with the system’s connection to energy collectors finalised in 2025. Sweden’s CorPower is preparing its C4 point absorber (TRL 7) for redeployment off the Portuguese coast after completing on‑land inspections and upgrades. Finally, the Netherlands’ Slow Mill Sustainable Power wave device underwent dry‑testing in 2024 and, in 2025, generated its first kilowatts of electricity from North Sea waves.
Ocean thermal energy conversion
Ocean thermal energy conversion (OTEC) exploits the temperature difference between deep cold water (at 800 to 1 000 m depth) and surface warm water. The technology has been tested by developers in Japan and the US (TRL 8), and at a smaller scale in China and India. In 2025, a new storm-resistant prototype developed under the EU’s Horizon Europe-funded PLOTEC project was installed off the coast of the Canary Islands. The performance data is expected in early 2026.
Salinity gradient power
Salinity gradient power (or osmotic power) uses salt content differences between freshwater and saltwater. This technology has mainly been tested in EU basins, with a Reverse Electrodialysis demonstration plant commissioned in 2014 by RedStack in the Netherlands (TRL 7), and a new pilot plant built in 2024 on the Rhone River and the Mediterrranean Sea by the French company Sweetch Energy (TRL estimated at 5-6). In 2025, Sweetch Energy signed a lease for a 3,000 m2 building where it will install the first production lines for its osmotic generators.
| TRL (Technology Readyness Level) | |||||||||
| Sub-Technology | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| Tidal energy | x | x | x | x | |||||
| Wave energy | x | x | x | x | x | ||||
| OTEC | x | x | x | x | x | x | |||
| Salinity gradient | x | x | x | x | x | ||||
Source: JRC, 2025
Other marine renewable technologies
While not belonging to either the offshore wind or the ocean energy sector, floating photovoltaic technologies are considered part of the Blue Economy for their use of maritime space and their integration into maritime value chains and port infrastructure. The Netherlands are particularly active in testing and installing these technologies. The North Sea 2 farm, commissioned by the Dutch company Oceans of Energy, reached full capacity in 2023. Several installations are planned by Oceans of Energy in the Netherlands and Belgium in 2025. In 2024, a new solar floating farm was installed by Dutch-Norwegian company SolarDuck. The French company SolarinBlue also successfully completed testing for its upcoming solar project site in Sete (France). The company’s technology is compatible with fixed and floating offshore wind farms, allowing shared connections to reduce infrastructure costs and increase renewable electricity production at the same site.
Given the different dynamics for both installation types, this section differentiates ocean energy capacities between those using emerging technologies (tidal stream, wave, OTEC, salinity gradient) from the infrastructures using the established tidal range technology.
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In 2024, according to the IRENA, the total ocean energy capacity reached 494 MW globally. EU accounts for approximately half of the global capacity (219 MW) More recent data[5] from 2025 suggest that the EU ocean energy capacity is 214 MW (Figure 2). Almost the entire capacity, 212 MW, comes from the La Rance tidal barrage in France, which uses tidal range technology), whilst the rest is derived from emerging ocean technologies (tidal stream, wave, OTEC and salinity gradient). Over the past ten years (2015-2024), the ocean energy capacity in the EU has remained relatively stable, mainly due to the ageing of the La Rance tidal barrage, dropping from its peak capacity of 220 MW in 2016 to 212 MW in 2024. The barrage is expected to regain part of its initial capacity after renovation works between2021-2026. At the end of 2025, operational energy capacity from other ocean technologies (excluding pilot projects) accounted for a total of 2.2 MW. This includes 1.5 MW for tidal stream energy, 650 kW for wave energy, and 20 kW for salinity gradient. There is currently no operational capacity for OTEC in the EU. France and the Netherlands have the majority of cumulative installed capacity for tidal stream energy, while Spain and Italy are leading the deployment ofwave energy devices.
Despite its growth, ocean energy still represents the smallest share of the renewable energy market. In 2024, the cumulative production reached 461 GWh in the EU, out of which 449 GWh came from La Rance tidal barrage and only 12 GWh from other technologies[6]. The electricity production from the La Rance tidal barrage is equivalent to the electricity consumption in the nearby regional capital of Rennes (over 200 000 inhabitants). In Spain, the Mutriku wave power plant is the world’s oldest grid-connected wave plant, with a cumulative electricity export of 3.43 GWh since 2011[7]. The plant can also host trials of new concepts of air turbine, control strategy and equipment. In 2025, it hosted testing of an IDM OWC turbine and prepared for EuropeWest test campaigns starting in 2026[8].
Over the next four years, the capacity for tidal stream and wave energy is expected to increase sharply, with a total of 165 MW of capacity planned for deployment in Europe, backed by a mix of private and public funding. Most of the planned capacity, 130 MW out of 165 MW, will be installed in the UK, followed by France (29 MW), Spain (5.5 MW) and the Netherlands (400 kW). In 2024, several new pre-commercial tidal farms and full-scale wave devices were deployed in the Faroe Islands (Dragon 4 array) and the Netherlands, with a total capacity of 1.2 MW and 0.2 MW respectively. For wave energy, a full-scale device with a capacity of 130 kW was deployed in the Canary Islands by the Dutch company Wavepiston.
| Ocean energy projects led by EU-based companies also include testing and commissioning devices beyond EU waters. Since 2021, the UK has been hosting an axial flow turbine installed by the Spanish company Magallanes with a 2MW capacity. The French-British company Hydrowing was awarded a contract by the UK government under the last Contract for Difference allocation round organised in 2026. Swedish company Minesto have tested and commissioned two tidal kite technologies in the Faroe islands with a total of 1.2 MW capacity addition. These projects are included in an ambitious plan for supplying the Faroe Islands with100% renewable electricity by 2030. |
Source: Own interpretation based on EMODNET, Open EI and desk research
Technology cost
Emerging ocean energy technologies are not yet established enough to be commercially viable based on revenue from energy production. According to the IRENA, the levelised cost of energy (LCOE) is 110–480 €/MWh for tidal stream and 160–750 €/MWh for wave energy. In 2022, OceanSET estimated the average LCOE for whole-system TRL 7-9 at 200 EUR/MWh for tidal energy and at 270 EUR/MWh for wave energy.
The commercialisation of tidal energy projects in recent years has helped establish a reference price at which electricity will be sold to the grid. For example, the reference price for Flowatt tidal farm to be commissioned in France in 2026 will be determined within a range of EUR 255 to EUR 310/MWh. Also, the strike price in the latest round of Contracts for Difference (CfD) awarded by the UK government to tidal projects was EUR 313/MWh (in 2024 prices). This strike price increased by 10.5% compared to 2024 (EUR 282/MWh) due to increased cost of capital and to increase the economic viability of tidal projects for companies. This cost trend also follows the pushback of the SET Plan targets, highlighting delays in achieving the expected cost reductions for tidal energy. The original SET Plan targets aimed for LCOE to reach EUR 150/MWh by 2025 for tidal energy and by 2030 for wave energy, these have now been pushed back to 2030 and 2035 respectively.
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Investment and financing
Ocean energy projects received significant amounts of investment from public and private sources. Since 2014, EUR 365 million have been invested in ocean energy projects under the EU’s Horizon 2020 Framework Programme and Horizon Europe (see Figure 6). Wave energy projects received the largest share of funding, with an allocation of EUR 201 million, followed by tidal energy projects with EUR 134 million. Other projects cover combined wave and tidal technologies, OTEC, or overarching ocean energy topics. In 2024, funding reached EUR 31 million, up from EUR 11 million in 2023.
Source: JRC based on IEA, 2025 Note: Data for 2023 are provisional.
The European Maritime and Fisheries and Aquaculture Fund (EMFAF) (2021-2027) has also financed some smaller projects including FLORA in 2022. The Innovation Fund launched in the end of 2025 a call to promote net-zero technologies, included ocean energy, with a total budget of EUR 2.9 billion. The Commission also supports the sector through the BlueInvest pilot initiative managed by the European Investment Fund, underlying equity funds that strategically target and support the innovative blue economy. Projects are funded also through the EU Innovation fund and the European Innovation Council Accelerator program, for example Normandies Hydroliennes (EUR 31.3 million) and CorPower (EUR 17.5 million). In addition to support for research & development, the Net-Zero Acceleration Valleys under the Net-Zero Industry Act (NZIA) was set up in 2024 to attract investment in locally manufactured net-zero technology.
EU-based ocean energy companies secured significant amounts of national funds too. For example, the French company Hydroquest received EUR 65 million for the Flowatt project from the French government; the Spanish company Magallanes secured EUR 9.3 million investment in the Morlais project from the Welsh government; and the Swedish energy agency funded EUR 0.25 million to the Swedish company Minesto for upgrading its mooring system.
As ocean energy projects gear up for industrial deployment, there is an increased interest from the private sector in seeking collaboration with these projects. A total amount of EUR 948 million has been invested by EU companies in the period 2010-2022. Some examples include the Irish state-owned utility ESB joined CorPower in the Saoirse wave project in Ireland; the collaboration between the energy giant ENGIE and Orbital Marine Power on the EURO-TIDES project in France; the partnership between the French provider Qair with HydroQuest on the Flowatt project in Normandy; the similar agreement between the energy provider SEV with Minesto in the Faroe Islands to harness the islands’ tidal resources. Interestingly, oil and gas companies are also increasingly looking to partner with ocean energy companies. TOTAL ENERGIES is part of CorPower Ocean’s pilot access programme and a member of the Renewables for Subsea Power Project partnering with Mocean Energy. Shell signed a partnership with Wavepiston in 2023 to identify wave energy opportunities. British gas company Kistos Holdings took an equity stake in tidal developer Spiralis Energy in 2024[9].
A large part of the investments is made by venture capital companies. In 2024, EUR 91 million was funded by venture capital and private equity investment in the ocean energy sector. Large deals include CorPower Ocean (EUR 32 million in 2024) and Sweetch Energy (EUR 25 million in 2023). This confirms the trend identified in 2023 with Minesto’s EUR 10.7 million shares issue and Oneka Technologies’ EUR 8.7 million funding round[10]. Crowdfunding and retail investment have also emerged as additional effective tools for raising capital. Between 2023 and 2024, over EUR 5 million was raised through these channels, with Wavepiston securing over EUR 2 million and HydroQuest raising EUR 1.5 million in crowd or retail investment rounds[11].
Employment in the sector
Ocean energy technologies only represent a small share of the energy sector and are still not commercially viable. According to IRENA, in 2025, there were approximately 1 000 people employed globally in this sector. Most of these jobs are in the UK, Spain, France and the Netherlands. The nature of jobs in this sector depends on the readiness level of technologies. In the early stages, activity is concentrated in research and development. In a second stage, when an innovation is promising, new companies and specialised teams create additional roles in management, administration, and communications. With further scale-up and the transition to commercial deployment, demand expands to include jobs in project finance, civil and marine engineering, manufacturing, installation, and long-term operations and maintenance.
The European Commission officially named ocean energy as one of the two technologies that count towards the EU’s innovative renewables target, calling on member states to dedicate 5% of new renewable capacity to innovative technologies by 2030[12]. With the deployment of 100 MW in wave and tidal technologies by 2050, it is estimated that the sector could generate 400,000 skilled jobs in the EU.
| Progress in ocean energy technology development opens prospects for EU-based companies to export technologies on the global market. Over the past years, global patent flows have already indicated EU’s growing expertise in the sector, with more EU-based companies seeking protection for their technologies on the extra-EU market[13]. In 2024 and 2025, this potential was realised with increasing collaboration between EU-based companies and third countries. Swedish-Israeli company Eco Wave Power has concluded a partnership with the Indian oil company Bharat Petroleum to develop a wave energy project in India[14]. Danish company Exowave has established a joint venture with US company AquaX to deploy wave energy in the Americas. Another Danish company, Wavepiston, has completed a 6-month feasibility study to evaluate the wave energy potential in Barbados. Swedish company Minesto, which presented an ambitious plan for deploying its tidal technology in the Faroe Islands, has been recently granted support by the Swedish energy agency with an aim to expand its activity to Asia. |
Sources: Cumulative capacities tidal and wave from OEE, floating and bottom-fixed wind from 4C Offshore;
LCOE tidal and wave from IRENA, floating wind from 4C Offshore, bottom-fixed wind from BNEF.
Note: TRL stands for Technology Readiness Level
1 The first offshore wind farm (Vindeby) was installed in Denmark in 1991 and decommissioned in 2017, after 25 years of useful life.
2 JRC analysis based on GWEC (2025) and 4C OFFSHORE (2025) WIND FARMS DATABASE.
3 4COffshore, 2023 - Floating wind: Industry focus.
4 A binding agreement in which a buyer agrees to purchase a portion or all of a producer’s future output at predetermined terms
5 An internal database has been created by adding projects identified via web searches to the sources EMODNET and OPEN EI.