In the quest for a sustainable future, the UK’s offshore wind industry stands at a critical juncture – poised for success but, like the rest of the energy industry, facing formidable challenges.
With one of the largest offshore wind fleets outside of China and a world-leading floating wind ambition, wind is a British success story we must build on.
We have an energy supply chain with over 50 years of expertise in engineering large-scale oil and gas projects and a workforce with the skills to deliver. In these respects, the UK has a clear competitive advantage.
OEUK members are helping to develop 13GW of offshore wind by 2030, requiring around £30bn of investment. That’s 60% more than the cost of building the Elizabeth Line.
By 2030, an average of £12bn per year will need to be invested, and the floating wind potential is four times bigger than fixed wind.
The recent Celtic Sea floating wind leasing round has also reinforced the UK’s leadership in terms of ambition. The opportunity therefore huge, yet challenges remain – particularly as we scale up in deeper waters.
At the heart of the challenge lies grid connectivity. The rapid expansion of offshore wind demands a robust and adaptable grid infrastructure to transmit electricity to homes and businesses across the country.
The UK offshore wind industry is urging governments to prioritise grid access and capacity to ensure we can upgrade our infrastructure while this burgeoning solution grows.
Government and industry should aim at halving the current project turnaround time to meet the 50GW by 2030 target.
Project financing remains another formidable hurdle. The development of offshore wind farms requires substantial investments, and securing funding has become increasingly tough.
Our latest Economic Report found that there is some £80 billion of potential spending in the wind project pipeline, but over half of this is waiting for final investment decisions from businesses needing renewed certainty to sign off.
We need to make sure that UK energy policy is clear and consistent to attract investment.
The reality is that the UK must become an irresistible place to do energy business, from conception to completion.
Community engagement is another vital aspect often underestimated. The energy transition cannot be done to people, we need to bring them on the journey with us.
A reshaping of public attitudes to the massive infrastructure this transition will require will be pivotal.
Governments and industry stakeholders need to work together to communicate with local communities, making sure they can actively participate in the decision-making process, and reap the rewards of the renewable revolution.
But even with the right regulation, policy, and attitudes to support the expansion of wind, traditional energies will still be needed for years to come.
Oil and gas, the people employed by the sector, and their decades worth of expertise will be key to the success of newer energy solutions – including hydrogen and carbon capture and storage.
By the mid-2030s, oil and gas will still provide 50% of the nation’s energy needs. Collaboration must be fostered between these sectors, by governments and industry, to build an integrated, diverse and secure energy mix.
The time is now for governments and industry leaders to unite, providing the necessary support to navigate these challenges and ensure the UK offshore wind industry’s triumphant journey towards a cleaner, more sustainable future.
For years, politicians and companies have spoken about the potential of offshore wind. Now is the decade of delivery.
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