Rob Allen
Senior Policy and Research Manager, Policy Connect
Dr Cristina Garcia-Duffy
Director of Research and Technical Capabilities, Offshore Renewable Energy Catapult
In the quest to harness the immense potential of offshore wind energy, the UK stands at the helm of innovation and progress.
With ambitious government targets set to ramp up offshore capacity to 50GW by 2030, the journey ahead is both exhilarating and challenging. The UK’s offshore wind sector, boasting the title of the second-largest market globally, has faced global headwinds over the past 18 months.
Inflation impact and capacity constraints
High inflation and escalating interest rates have cast shadows of uncertainty. Trying to keep costs for consumers low, the Government was reluctant to account for these factors in last year’s clean energy auction, which failed to secure any new offshore wind projects.
The supply chain has also faced significant challenges, with a recent analysis commissioned by the Department for Energy Security and Net Zero reporting capacity constraints in several of the supply chains critical for the delivery of new offshore wind projects.
The benefits of offshore wind, including
economic growth, energy security and
grid decarbonisation, are clear.
Need for a sustainable and resilient supply chain
Central to this mission is the imperative to fortify the supply chain, the backbone of offshore wind development. Port infrastructure emerges as a critical focal point, necessitating significant investment to accommodate the logistical demands of the sector. The recent saga of a turbine destined for repair overseas, instead of at a nearby UK port, underscores the urgency of bolstering domestic infrastructure.
To this end, a multifaceted strategy emerges, blending targeted interventions such as the Government’s Floating Offshore Wind Manufacturing Scheme and collaborative initiatives including the recently launched Industrial Growth Plan to chart a course towards success.
UK’s offshore wind economic and societal boost
The benefits of offshore wind, including economic growth, energy security and grid decarbonisation, are clear. The Government estimates that its ambition for the sector will support 90,000 direct and indirect jobs in the UK by 2030, and targeted intervention of up to £2.8 billion over the next five-year period will be crucial to unlock up to an additional £25 billion in economic value to the UK and in achieving net zero greenhouse gas emissions by 2050.
