North Sea states sign deal to create 'world's largest energy hub'

European countries bordering the North Sea have agreed to sizeable investments to expand offshore wind energy production, at a major gathering in Germany on Monday.

Wind farms in the North Sea are to feed into the grid of more than one country, as per the deal signed by energy ministers at the third North Sea Summit in Hamburg.

The group of states bordering the North Sea are seeking to improve conditions for investment and cut costs as Europe struggles to keep offshore wind projects financially viable and amid investor unease.

With the current US administration taking a hostile stance towards green energy - as exemplified by US President Donald Trump's onslaught against wind farms in his Davos speech last week - Europe is seeking to establish itself as a stable alternative for clean-energy investment.

Under the new deal, Berlin said that up to 100 gigawatts (GW) of production capacity are to be made available across the region.

"Our goal is to develop the world's largest energy hub," German Economy Minister Katherina Reiche said.

At the same time, a commitment to further continuous offshore wind tenders in the North Sea beyond 2030 is to provide planning and investment security to wind energy and grid companies.

In return, industry has committed to reducing total costs for energy production by 30% by 2040.

In addition, €9.5 billion ($11.2 billion) are to be invested in new production capacity in Europe by 2030, creating 91,000 additional jobs.

"With the consistent expansion and intelligent networking of offshore energy, we are creating affordable, clean and secure energy, reducing strategic dependencies and increasing Europe's overall resilience," Reiche said.

Wind power on the rise

Last year, offshore wind farms accounted for around 5% of Germany's electricity consumption.

Overall, renewable energies covered almost 56% of electricity consumption, with onshore wind turbines accounting for the largest share, followed by solar power plants.

The share of offshore wind power in the electricity mix could rise to around 20% by 2045, according to forecasts.

Some 32 million households can already be supplied with electricity from offshore wind energy, according to the European wind energy association Wind Europe.

The figure could grow to more than 330 million if production rises to 300 GW in 2050.

Focus on energy security

North Sea countries also see an expansion of wind power as a way to protect energy supplies.

"It is not only since Russia's war of aggression against Ukraine that we have seen increasing attacks on our critical infrastructure," Reiche, whose ministry is also in charge of energy, said at the start of the summit.

Power grids, pipelines and important data cables, which are crucial to the continent's digital sovereignty, are under attack, "which is why NATO is represented at a high level here for the first time," she said.

In addition to several state leaders, energy ministers and EU and NATO official are also in attendance at the one-day event in the northern German port city.

Environmental activists, meanwhile, cautioned that the expansion of wind power should not come at the expense of nature.

"The ecological impact of massive habitat loss for many seabirds and irreversible changes to the North Sea ecosystem threaten to become uncontrollable," said Kim Detloff, marine expert at Germany's Nature and Biodiversity Conservation Union.

She criticized the view of the North Sea as a "power plant."

Winter weather disrupts plans

The first North Sea Summit was held in 2022 in Denmark in response to Russia's invasion of Ukraine. At that time, the aim was to speed up the transition to renewables to replace Russian gas and oil deliveries.

At the second edition in Belgium in 2023, leaders agreed to turn the North Sea into the "green power plant of Europe."

As of October 2025, countries bordering the North Sea have installed capacities of around 35 GW, only a 10% of the target, according to German official figures.

The United Kingdom has the largest offshore wind capacity, with around 15 GW. Germany accounts for 7.3 GW and the Netherlands for 4.5 GW.

Ten European states are represented this year's Summit in Hamburg, including Germany, Denmark, Belgium, the Netherlands, Norway, France and the United Kingdom.

Ireland and Iceland are also taking part, as is land-locked Luxembourg, which is contributing to investments in wind energy.

German Chancellor Friedrich Merz was due to welcome a group of leaders including Belgium's Bart De Wever, Norway's Jonas Gahr Støre and the Netherlands' Dick Schoof and show them around a multi-purpose ship in the port of Hamburg, but winter weather disrupted the plans.