Norway-based energy company Equinor has dropped its goal of achieving 10 to 12 GW of installed renewable energy capacity by 2030. The company cited weaker project economics, rising costs, and changing market conditions as reasons for this decision. This marks a significant shift in Equinor's approach to renewable energy, its transition plans, investments in clean energy, offshore wind projects, and decarbonization efforts as it reexamines its growth expectations.

Equinor CEO Anders Opedal stated during the company’s Capital Markets Day that the company has been aware for several years that it would not meet the target. He noted that the energy market outlook has changed dramatically since Equinor introduced its transition strategy in 2021. Higher lease prices and rising development costs have impacted the feasibility of renewable projects.

Company Revises Earlier Renewable Growth Plans

Equinor launched its energy transition strategy in 2021 with plans to expand its renewable energy portfolio significantly. At that time, the company intended to increase the share of gross capital spending on renewables and low-carbon solutions from roughly 4% in 2020 to over 50% by 2030.

Initially, the company had targeted 12 to 16 GW of installed renewable energy capacity by 2030. However, in early 2025, Equinor removed its 50% gross capital spending goal and lowered its renewable capacity ambition to 10 to 12 GW.

This latest decision is another adjustment to the company’s climate strategy as it navigates market challenges affecting renewable energy development.

Higher Costs Impact Renewable Projects

In discussing the revised approach, Opedal mentioned that Equinor had a different view of market conditions when it introduced the transition plan. He pointed out that lease prices have risen quickly, making some projects less appealing from an investment standpoint.

Despite investing in renewable projects, the company chose not to move forward with some developments due to rising costs. Equinor now anticipates reaching around 6 to 7 GW of renewable energy capacity by 2030, which is below its earlier target.

The company noted that its pipeline of renewable projects has shrunk more than expected due to higher costs and expensive leasing rounds, limiting opportunities for future expansion.

Carbon Capture Plans Face Market Uncertainty

In addition to its renewable energy goals, Equinor has also reassessed its carbon capture and storage ambitions. In 2021, the company set a target to transport and store 30 to 50 million tonnes of carbon dioxide by 2035.

During the Capital Markets Day, Equinor reported that it has secured enough storage capacity to meet this goal if market demand grows. However, the company acknowledged that investment in decarbonization projects has slowed as businesses deal with economic pressures.

Irene Rummelhoff, Equinor’s Executive Vice President for Marketing, Midstream & Processing, stated that the carbon market is being impacted by lower costs for emitting CO₂ and decreased public funding availability. She emphasized that customers alone cannot drive the transition and that stronger partnerships between public and private sectors are essential.

Equinor Focuses on Power Production Growth

Despite cutting its renewable energy target, Equinor announced plans to boost power production to over 20 TWh by 2030, compared to 5.7 TWh in 2025. The company indicated that this growth will come from a mix of renewable energy sources and flexible assets, including gas power.

This revised strategy reflects the broader challenges facing energy companies as they try to balance renewable expansion with investment returns, market conditions, and shifting policy environments.

Equinor’s decision underscores the increasing pressure on energy companies to reevaluate clean energy targets amid rising project costs, financing hurdles, and uncertainty regarding future demand for low-carbon solutions.