Offshore renewable energy could generate more than £6billion and 150,000 jobs for the UK economy a year by 2020, according to a new report.
The report, based on renewable supply chain data from BVG Associates and the Fraser of Allander Institute, looks at the best and worst case scenario for UK wind and tidal energy projects over the next six years.
A best-case scenario of 15GW capacity would see £6.7billion in gross value for the economy, along with 34,000 direct jobs and 150,000 jobs in total, while the worst-case considered – of 8GW – would still see £2.3billion added to the economy.
Even at its lower end, the report claims, a further 50,000 jobs would be supported through offshore renewable schemes, based on the energy market reform plan announced by the Department of Energy and Climate Change last year.
The report added that by developing an “internationally competitive offshore renewable energy industry, the UK will benefit from investment in strategically important technologies and markets, economic diversification, increased international trade and greater economic competitiveness”.
It also said the economic benefits of a larger offshore renewables sector could be spread throughout the country.
“The UK economic benefits generated in terms of wealth and employment creation will not be concentrated in one or two regions but will be dispersed across many local economies in the UK,” it stated.
“This distribution of economic benefits will promote regional growth and greater economic parity across regions.”
The report was published by industry body the Offshore Renewable Energy Catapult, which looks to improve commercialistation of wind and tidal projects.
“The UK is in a strong position today, leading the world in both deployment and ambition for offshore renewable energy,” said ORE Catapult chief executive Andrew Jamieson.
“We have the industrial base, research capability, regulatory framework and supply chain to continue to prosper and lead.
“This report clearly demonstrates the significant potential economic value of offshore renewables and why it is worth the investment now to develop and grow sustainable industries delivering energy from our offshore natural resources.”
The findings were welcomed by industry body Renewables UK, which said it underlined the value of offshore green energy systems ahead of next week’s Budget.
“This new report makes a cast-iron case for maximum political support and investment in the offshore wind and marine energy sector,” said director of external affairs Jennifer Webber
“But the jobs and the UK-wide economic reboot won’t happen to the full unless Government policy is 100% supportive.
“To make the most of our world-beating resources, the offshore renewables sector need certainty on policy, with Government standing four-square behind us to achieve growth at a brisk pace. We can’t risk confidence melting away, or other European countries will leap in and grab as many of the manufacturing opportunities as they can.”
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