The offshore wind industry is set for a £66million cash boost as the government looks to keep the UK as a ‘world leader’ in the renewables sector.
A new package of funding has been announced to improve the supply chain for offshore developments, boost innovation and bring new products to market.
The plans, part of a new offshore wind strategy, will also see the creation of a new body aimed at attracting new renewables investment to the UK.
The new scheme was announced as Deputy Prime Minister Nick Clegg and Energy Secretary Ed Davey formally opened Centrica’s £1billion windfarm off the Lincolnshire coast.
“The race is now on to lead the world in clean, green energy,” said Clegg.
“As an island nation and with our weather, the UK is ideally placed to make the most of offshore wind energy – you could say it was a technology designed for us.
“This strategy will help keep Britain as the world leader in one of the most important industries of the 21st century.
“If we make the most of offshore wind’s potential in the UK, it can provide a big proportion of the energy that lights our homes and powers our economy.”
Scotland’s renewables industry body backed the new new funding proposals to highlight the momentum building behind the offshore wind industry – but warned a clear framework to attract investment into the sustainable energy market was still lacking.
“Whilst the industry continues to face significant challenges, offshore wind offers massive opportunities to our manufacturing sector, our ports and harbours and offshore supply chain,” said Scottish Renewables policy manager Michael Rieley
“This strategy provides a useful road map to navigate through these challenges and to maximise the economic opportunities of the sector.
“Ultimately, the delivery of a competitive supply chain hinges on investors and manufacturers having confidence that the UK will provide a long-term, sustainable market.
Yet that clear, long-term framework which is so crucial to attracting investment remains wanting. With a market potential of 28GW across Europe by 2020, it’s essential that the UK emerges as the most competitive place in the EU to develop offshore wind.
“Fundamentally, the greatest signal of certainty that the UK Government can provide is through its emerging Electricity Market Reform process. We await more details of the new support mechanism, including requirements around the ‘supply chain plan’ which developers may now be expected to provide.”
The investment programme will include £20million from the regional growth fund for a new manufacturing advisory service to support the supply chain in the UK, plus £46million over five years from the Offshore Renewable Energy Catapult Centre to link industry, universities and government in brining new offshore wind products to market.
Wind farm developers will also be required to produce a supply chain plan before they can apply for long-term investment contracts to set out how proposed farms will aid the supply chain.
The move comes as the Government targets offshore wind contributing up to £7billion to the UK economy by 2020, creating 30,000 jobs in the process.
RenewableUK revealed that the UK’s total onshore and offshore wind capacity had passed 10 gigawatts, providing enough power for the equivalent of 5.5 million homes.
“This strategy clearly identifies the extraordinary opportunity that offshore wind offers to the UK,” said RenewableUK’s chief executive, Maria McCaffery.
“This document is a blueprint for green-collar job creation which, as long as its recommendations are fully implemented, will ensure that Britain reaps the once-in-a-lifetime benefits offered by our world-leading offshore wind sector.”
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