The time has never been better for Aberdeen to engage with the renewables industry, and it is critical that it does so: both for the local economy and the effective deployment of renewable, especially in the maritime environment.
Government policy is creating the framework for a major new energy industry. This will deliver a high level of economic activity, contribute to security of energy supply and contribute towards the push for a more sustainable, environmentally responsible future. Key instruments such as the European Renewables Directive, the UK policy to cut carbon emissions by 60% by 2050 and the increase in the Scottish Government 2020 electricity target from 40% to 50% have established powerful drivers for industry growth. Such Government action indicates a clear intent and enables the future market to be quantified and the business opportunities to be assessed.
The current global economic climate has undoubtedly created financial and other constraints. However, the significant level of interest in both the UK Round 3 and related Scottish Round for offshore windfarm leases demonstrates that many developers remain confident. The ambition for 25GW and 6GW, respectively, certainly should give rise to serious consideration of the opportunities this scale of development presents.
At current construction costs, this capacity will require capital investment of £75billion for Round 3 alone. Underlying these numbers, the demand for new, more efficient technology, materials, vessels, deployment methods, manufacturing and fabrication, engineering, process, project management, operations and maintenance services verges on awesome. The timescales for achieving these goals may be the subject of much debate, but the goals remain, as do the challenges of delivery.
In addition, real progress is being made in the wave and tidal sectors. Devices are now being deployed and true commercial-scale development is that bit closer. New technologies are being developed and are moving from drawing board to prototype. However, there are significant challenges that must be risen to if we are to create this new industry.
As a global energy centre, Aberdeen City and Shire offers a brilliant, highly concentrated pool of expertise and experience in energy development. These skills will be essential if we are to create a renewables industry of the scale we want and within the timescales we require. AREG members are tackling the opportunities and challenges with enthusiasm and we are seeing significant results from their efforts.
In offshore wind, we have activity in technical surveys, engineering, project management, marine operations and cable-laying. Local companies are also starting to become project developers.
In wave and tidal, our companies are active in technology development, design, modelling, prototyping and fabrication. And some are shaping as developers. The result is real business, real contracts and real deals – here and now.
In addition to commercial activity, steps are being taken to develop our energy resource base.
We welcome the Scottish Government’s intention to develop a new European energy agency, the Scottish European Green Energy Centre (SEGEC), and to base it in Aberdeen. SEGEC will assess the potential for a North Sea transmission grid and for establishing environmental best practice in offshore windfarm development, thus addressing key industry issues.
Our internationally renowned universities – The Robert Gordon University and Aberdeen – have created a joint chair in energy futures and are developing a co-operative research agenda. They are also contributing to the development of a Scotland-wide co-operative research programme through the Energy Technology Partnership.
These initiatives will produce new technology and processes which will provide new business opportunities for energy companies and keep Scotland at the forefront of the global energy industry.
AREG, with joint-venture partner Vattenfall, is pursuing plans for the development of an offshore wind test centre associated with the proposed Aberdeen offshore windfarm. There is a proven industry demand for the facility and it is expected to accelerate the development and testing of the improved technology and methods that will be required to deliver the implementation of Round 3 offshore developments. In recognition of the importance of this project, the European Commission proposes to invest 40million euros in it.
We continue to develop our plans for a new, world-class, state-of-the-art energy development hub in the city – the Energy Futures Centre. This will contribute to energy policy development, provide leadership in energy engineering and technology development and showcase Aberdeen and Scotland’s achievements in energy – both oil& gas and renewables.
This week, a record 5,000 visitors from more than 60 countries are expected in Aberdeen for the All-Energy exhibition and conference. This event offers a unique opportunity to identify live business opportunities in renewables and discover the status of a range of technologies and projects. AREG is hosting its largest ever stand, with 28 exhibitors, so local capabilities will be prominently on display. It will be clear at All-Energy that the race for renewables is on. It will also be clear that Aberdeen has its own significant contribution to make and will be a leader in that race. AREG is determined to see that happen.
Morag McCorkindale is chief operating officer at AREG (Aberdeen Renewable Energy Group)
