AbstractOffshore wind resources are quantified from satellite synthetic aperture radar (SAR) and satellite scatterometer observations at local and regional scale respectively at the Horns Rev site in Denmark. The method for wind resource estimation from satellite observations interfaces with the wind atlas analysis and application program (WAsP). An estimate of the wind resource at the new project site at Horns Rev is given based on satellite SAR observations. The comparison of offshore satellite scatterometer winds, global model data and in situ data shows good agreement. Furthermore, the wake effect of the Horns Rev wind farm is quantified from satellite SAR images and compared with state‐of‐the‐art wake model results with good agreement. It is a unique method using satellite observations to quantify the spatial extent of the wake behind large offshore wind farms. Copyright © 2006 John Wiley & Sons, Ltd.