Government launches offshore wind strategy

Strategy aims to grow UK supply chain, create thousands of green jobs and contribute £7 billion to the economy by 2020

A long-term strategy that sets out to strengthen the UK’s position in the offshore wind industry has been launched by the government today.

The Offshore Wind Industrial Strategy aims to support large scale investment in the British supply chain, raise awareness of the commercial opportunities in the UK and overseas, and deliver the innovation and competition needed to bring down costs for consumers.

Government investments, in support of the strategy, will include £20 million from the Regional Growth Fund to improve the UK wind industry’s supply chain, and £46 million to join up innovation between industry, government and academia and help companies to bring new products to market.

Currently the UK has more offshore wind power than the rest of the world combined. The government estimates that the industry has the potential to create 30,000 jobs in the UK and contribute £7 billion to the economy by 2020.

Deputy Prime Minister Nick Clegg said that the strategy will ensure Britain remains “the world leader in one of the most important industries of the 21st century”.

He said: “The race is now on to lead the world in clean, green energy. 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.

“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.”

Energy secretary Ed Davey said that the strategy will “attract investment into the UK, support thousands of skilled green jobs whilst providing homes with clean energy”.

Strategy investments, funding and initiatives include:

• £20 million investment from the Regional Growth Fund for GROW: Offshore Wind and a new Manufacturing Advisory Service programme to support the UK supply chain to become more competitive by offering tailored support from specialists.
• £46 million funding over five years for the Offshore Renewable Energy Catapult Centre to join up innovation between industry, government and academia and help companies to bring new products to market.
• A new Offshore Wind Investment Organisation, established by UKTI, to attract inward investment to the UK.
• Industry-led initiatives to share information with the supply chain about their procurement timelines and contracting decision points.
• A proposal that would require developers of offshore wind farms above a certain size to produce a supply chain plan before they can apply for a Contract for Difference – long-term contracts to provide stable revenues for investors in low carbon energy projects – setting out how the project and procurement approaches will encourage a wider, more diverse supply chain and support innovation and skills.
• Expansion of the scope of the DECC offshore wind manufacturing funding scheme to support port and coastal infrastructure development in assisted areas of England. Any grants offered will be conditional on sites securing manufacturing investment.
• The Green Investment Bank has an ambition to invest a significant proportion of its £3.8 billion capital in offshore wind and to co-invest in projects with commercial parties.