Supply chain companies in the UK’s north-east cluster can help developers build offshore wind projects at the low prices awarded at this year’s Contracts for Difference (CfD) 3 auction, the Offshore Wind North East 2019 conference has heard.
Speaking at the opening session on Thursday, Tekmar chief executive and Energi Coast chair James Ritchie (pictured) said local companies can compete for work at the 5.5GW of offshore wind projects allocated at strike prices ranging from £41.61 (€48.30) per megawatt hour (MWh) to £39.65/MWh.
“We do not underestimate the pressure this level of pricing will create, but this region will be cost competitive to support the growth of this industry,” he said.
The winning projects at this year’s auction include Innogy’s 1.4GW Sofia development and SSE/Equinor’s 3.6GW Dogger Bank complex, both located off the north-east coast of England.
Ritchie called on developers to engage with local companies to help ensure cost cuts are sustainable and hailed the region’s “strong track record” in the sector.
“The innovations that the north-east’s proven supply chain has brought to offshore wind are second to none,” he told the 700 delegates at this year’s event in Newcastle.
Energi Coast figures show the region has turned over £260m from offshore wind in the last year and the industry employs more than 3000 people locally.