Supply chain growth is key to rolling out more offshore wind in future auctions. Commenting on the results of this year’s Contracts for Difference auction (Allocation Round 6), the Co-Chair of the Offshore Wind Industry Council (OWIC) Richard Sandford said: “These results are a vote of confidence in the UK’s offshore wind market, and it’s crucial that we focus next on maximising the amount of offshore wind capacity we secure in future annual auctions", OWIC said in its media release.
"Offshore wind has been one of the great UK success stories of this century so far. From a standing start at the turn of the century, offshore wind could provide over half of UK power by 2030. We are home to the world's five largest offshore wind farms and we have the second biggest pipeline of projects globally. Each gigawatt of new offshore wind adds £2-3bn of value to the UK economy and the sector supports over 30,000 jobs," the report said.
The Industrial Growth Plan sets out an ambitious vision for the UK in this new era of global offshore wind. It is a vision that is rooted in the strengths of our industry and wider economy - one geared toward the future of offshore wind technology and innovation that drives growth and sustainability.
Last year's Supply Chain Capability Assessment set out the size of the offshore wind opportunity in the UK. The Growth Plan takes this a step further by defining the priorities, objectives and actions needed to capture a bigger share of that opportunity. This is anchored in a 'make or buy assessment of all the key components and services in the offshore wind value chain. The IGP targets £25bn of GVA through a focus on technology areas vital to domestic supply, or in which we have the capabilities to build UK competitive advantage and leadership in innovation.
"This focus on technology is pivotal if we're to translate our ambitions into results for the wider economy. Investing in technology development and a skilled workforce is fundamental to making our economy more productive and boosting prosperity for the long-term. Growth is the destination and technology is the vehicle. The net zero transition is, fundamentally, a technology story and the scale of investment makes it the great growth opportunity of the 21st century".
The technology development seen in the last decade in offshore wind has transformed the economics of energy and the net zero transition. From an expensive, immature technology, offshore wind is now at the heart of the global energy future and one of the lowest cost sources of power. This was largely driven by a transformation in technology as the sector engineered, scaled up and industrialised new solutions.
Globally, 120 nations have committed up to trebling renewables capacity by the end of the decade. As global competition for renewable energy supply chains intensifies, countries with a long-term, strategic approach will be the most successful in attracting investment in new industry.
“Offshore wind will create tens of thousands of jobs, help enhance Britain’s energy security and lower costs for consumers. To achieve this, we will have to scale up the UK’s offshore wind supply chain faster to support projects here and abroad, boosting the UK’s economy by a further £25 billion between now and 2035".
“The sector’s Industrial Growth Plan demonstrates that we can triple our manufacturing capacity over the next ten years by focussing on competitive supply chain areas including designing and manufacturing blades, turbine towers, foundations and cables. We are collaborating with Government to turn this plan into action for its clean energy mission. AR6 has increased confidence in the sector which we aim to build on further in future auction rounds”.
The Offshore Wind Industry Council (OWIC) is a senior Government and industry forum established in 2013 to drive the development of the world-leading offshore wind sector in the UK.