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World Economy
Mar 25, 2026

Iran Conflict Threatens EU and UK Offshore Wind Projects with Delays

AI Summary
The ongoing conflict in Iran is posing a threat to large offshore wind projects in the EU and UK, potentially causing delays due to disruptions in the shipping of crucial parts manufactured in the Gulf region.

The Iran war is threatening to disrupt shipping of crucial parts manufactured in the Gulf, potentially delaying large offshore wind projects in Europe. Industry sources are concerned that components ordered from suppliers in the United Arab Emirates could become trapped if shipping remains effectively blocked through the strait of Hormuz.

These projects include two giant offshore windfarms planned for UK waters, as well as a series of projects that will supply offshore wind power to Germany and the Netherlands. The UK windfarms, which will lie off the coast of Norfolk, were each awarded a 20-year support contract from the British government just a month before Iran effectively closed the strait of Hormuz.

The developer behind the plans, the German renewables group RWE, has contracted a Dubai-based company to deliver more than 180 components from its UAE fabrication yard while the windfarms are constructed. The windfarms are expected to supply the equivalent of about 4m UK homes before the end of the decade, meaning they would play an important part in supporting Britain’s aim to quadruple offshore wind capacity by 2030.

A spokesperson for RWE said it had begun liaising closely with its supply chain partners amid the Middle East conflict, which has included airstrikes against key infrastructure. “Our primary focus is the safety of those working in the area,” they said. “To date there has only been a limited effect on our supply chain partners’ activities, but we are monitoring the situation closely and putting mitigation plans in place should the situation continue for a prolonged period.”

The shutdown of the strait may also have an impact on a large project by the transmission operator TenneT that will link offshore wind projects in the German North Sea to mainland Germany. The company has contracted a UAE fabrication yard to deliver structural steel components, including a 5,461-tonne jacket foundation built for the BorWin6 high-voltage transmission project.