European and Domestic Offshore Wind Power Development Set to Accelerate, Sector Revaluation Anticipated

Stock News
03/17

Shenwan Hongyuan Group Co., Ltd. has released a research report stating that Europe's urgent need for energy independence is making wind power-centered electrification a core strategy to enhance economic resilience and reduce reliance on fossil fuel imports. Amid escalating energy conflicts, European wind power construction is expected to significantly accelerate. China's 15th Five-Year Plan clearly targets cumulative grid-connected offshore wind power capacity exceeding 100 million kilowatts, indicating a definitive inflection point for domestic offshore wind development. The firm recommends focusing on component segments with large potential export exposure, scarce capacity, and strong profit elasticity. Key points from Shenwan Hongyuan are as follows:

The UK government has announced the elimination of import tariffs on 33 categories of wind power components effective April 1. Tariffs on key parts such as blades and cables have been reduced from 6% and 2% to zero. The primary objective is to strengthen the UK's offshore wind supply chain and enhance the international competitiveness of its domestic manufacturing. This cost reduction is expected to directly stimulate wind power demand. Meanwhile, China's wind power components have maintained high export exposure to Europe and are poised to benefit directly.

Europe's push for energy independence is urgent, with wind power-led electrification seen as the central pathway to boost economic resilience and cut dependence on imported fossil fuels. Given current intensifying energy tensions, European wind power development is projected to speed up substantially.

China's 15th Five-Year Plan, officially released on March 13, explicitly calls for the construction of offshore wind power bases in the Bohai Sea, Yellow Sea, East China Sea, and South China Sea. It outlines plans for standardized and orderly development of deep-water offshore wind projects, targeting cumulative grid-connected capacity of over 100 million kilowatts. According to National Energy Administration data, cumulative offshore wind capacity reached 47 million kilowatts by December 2025. This implies average annual installations of at least 10 GW during the 15th Five-Year Plan period.

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