Finding the balance in solar & wind

Western Europe’s energy transformation in 2025.

By Wim Nieuwenhuijse & Cas Weijenberg

Western Europe’s energy transformation is increasingly shaped by two key renewable sources: solar and offshore wind. Each plays a unique role in the region’s evolving energy landscape, creating strategic opportunities for investors to support and benefit from a balanced, resilient power portfolio.

South vs. North

Solar power dominates onshore markets in southern regions like Spain, Portugal, and Italy, where high solar irradiation ensures reliable midday electricity production. Rooftop installations and utility-scale solar farms continue to expand, driven by falling technology costs and supportive policies. However, solar output remains inherently variable, with reduced production on cloudy days and during shorter winter months.

Offshore wind, by contrast, flourishes in northern waters — particularly the North Sea and Baltic regions — where wind speeds are stronger and more consistent. Unlike solar, offshore wind farms generate electricity around the clock, with peak output often aligning with higher winter energy demand. This reliability, coupled with advances in turbine technology, positions offshore wind as a vital pillar of Western Europe’s energy strategy.

Renewable challenges

Despite this potential, offshore wind faces notable challenges. Rising material costs, supply chain disruptions, and regulatory delays have slowed the pace of new developments. Some high-profile projects have been postponed or cancelled, introducing short-term uncertainty. Yet, governments across the region remain committed to offshore wind, recognizing it as essential for energy security — particularly in efforts to reduce reliance on imported fossil fuels. While the sector may face temporary turbulence, its long-term trajectory remains promising.

Land use and infrastructure needs further differentiate the two technologies. Solar, especially at utility scale, requires significant space, which can lead to competition with agriculture or environmental concerns. Offshore wind, while more capital-intensive to deploy and maintain, bypasses these land constraints by utilizing expansive sea areas.

Strong growth remains

From an investment perspective, both markets present compelling opportunities. Western Europe currently hosts over 250 GW of installed solar capacity, with forecasts projecting 15% annual growth, driven by efficiency improvements and growing rooftop adoption. Offshore wind, though smaller at around 40 GW, remains on an ambitious growth path. Capacity is expected to more than triple by 2030 — potentially reaching 150 GW — contingent on addressing cost pressures and regulatory hurdles.

Environmental considerations also influence long-term viability. Solar panels rely on resource-intensive manufacturing and require effective end-of-life recycling plans. Offshore wind, meanwhile, faces challenges around marine ecosystems and the disposal of large turbine blades. Industry innovations — including recyclable blade materials and sustainable supply chains — are advancing to mitigate these impacts.

Complementary assets

For investors, the key takeaway is clear: solar and offshore wind are not competitors but complementary assets in Western Europe’s energy future. Solar offers rapid, scalable deployment with falling costs, while offshore wind provides consistent, high-output generation — particularly during high-demand winter periods.

Investing in both technologies builds portfolio resilience and positions stakeholders to lead in Europe’s energy transition. Offshore wind may face temporary market pressures, but its long-term growth potential remains intact — and solar continues to scale rapidly. As governments push toward net-zero commitments and grid infrastructure adapts to manage renewable variability, the window of opportunity is now. Solar and offshore wind are set to shape the energy landscape for decades to come — will your investments be part of the transformation?

We are happy to discuss the potential of renewables in your portfolio. Just contact Cas or Wim at Morph.