Offshore Europe 2025 op-ed: Supply chain consolidation can accelerate offshore wind deployment
Key Highlights
- The offshore wind industry faces supply chain fragmentation, especially in the balance of plant segment, leading to increased risks and costs.
- Supply chain integration consolidates services under a single contract, reducing interfaces, costs and operational complexity.
- Integrated models improve project reliability, accountability and efficiency, helping meet ambitious global offshore wind targets.
By David Carr, OEG
The offshore wind industry stands at an inflection point. Governments worldwide have set ambitious targets:
- 50 GW of installed capacity in the UK by 2030;
- More than 110 GW in the EU; and
- Aggressive build-out plans across the US, South Korea and Japan.
Investment is rising and turbine technology continues to advance, but the delivery model underpinning offshore wind projects remains under severe strain despite this momentum. The challenge is not ambition or technology. It’s the supply chain.
Offshore wind has quickly matured from demonstration projects to multi-billion-euro developments. However, the sector’s supply chain remains fragmented compared to its oil and gas counterpart. Operators today must manage dozens of contracts spanning highly specialized scopes. This complexity creates higher risk profiles, increased costs and frequent delays.
The weakest link
The industry often references the “three-legged stool” of offshore delivery, the original equipment manufacturers (OEMs), the engineering, procurement, construction and installation (EPCI) contractors and the balance of plant (BoP).
The BoP segment is often the weakest link. A single offshore wind farm may involve 25 or more contractors for these services. Many SMEs lack the financial strength to absorb project risk or scale operations in line with demand. Failures in this segment can be just as consequential as those at the OEM or EPCI level but are far more common.
For operators, this fragmentation translates into:
- Increased interfaces: Managing dozens of suppliers across interdependent scopes adds administrative burden and operational risk.
- Higher costs: Inefficiencies in coordination and procurement drive up project expenditure.
- Diluted accountability: When issues arise, responsibilities are often unclear, leading to delays and disputes.
The result is a delivery model that struggles to keep pace with the scale of current offshore wind ambitions.
A growing number of service providers argue that the solution lies in supply chain integration, consolidating BoP services under a single umbrella. By bundling marine logistics, subsea operations, asset integrity, and inspection and maintenance into a single contract, operators reduce complexity and risk.
A plan in action
OEG recently secured a contract to support the construction phase of the Inch Cape Offshore Wind Farm until it becomes operational in 2027. The company will supply an integrated package of specialist topside and marine services under one agreement.
The benefits of this model include:
- Reduced overhead: Fewer contracts and simplified project management.
- Improved pricing: Integrators with long-term visibility can invest in people and assets, passing efficiencies to clients.
- Clear accountability: One point of contact for BoP reduces scope gaps and eliminates disputes between subcontractors.
- Enhanced reliability: Unified planning and execution reduce delivery risk.
Supply chain integration
Integration is particularly timely given the pressure on governments and developers to accelerate offshore wind deployment while reducing costs. In markets like South Korea, policymakers are explicitly favoring local content and bundled capabilities in their procurement rules. This is an approach that aligns directly with integrated delivery models.
As global demand surges, supply chain maturity is increasingly the limiting factor. Without new approaches to procurement and delivery, targets risk slipping out of reach.
The traditional model is increasingly becoming fragmented, complex and risk-laden. Offshore wind projects are getting larger, timelines are tightening and cost pressures are intensifying.
Integration provides a practical solution: fewer interfaces, reduced risk and a stronger foundation for industrial-scale deployment.
For operators and governments alike, the message is clear. If offshore wind is to fulfill its role in the global energy transition, supply chain integration cannot be an afterthought. It is the missing link between today’s strained delivery models and tomorrow’s decarbonized energy system.
The OEG team is attending SPE Offshore Europe this week in Aberdeen, Scotland, and CCO David Carr presented the "Rethinking Offshore Wind: Why integration is the missing link" session on Sept. 3 in the Offshore Wind Theatre.
About the Author
David Carr
David Carr joined OEG as chief commercial officer in January 2024. He is responsible for leveraging opportunities across the group, developing new markets and business lines, and delivering long-term value to customers and shareholders.
Carr previously served as senior vice president at Helix Energy Solutions Group where he secured global service agreements with major corporates like ExxonMobil and Chevron, and he developed new business models in the decommissioning and offshore renewables segments.
He holds a first-class mechanical engineering degree from Salford University and an MBA from Edinburgh Business School.