UK energy department BEIS has launched the offshore wind sector deal that will serve as the roadmap for a 30GW by 2030 installed capacity target.
The joint government-industry blueprint consists of price support commitments and supply chain investment plus heightened ambitions for local content, exports and job creation over the next decade.
The recommendations in the pact have been developed by Equinor and its fellow members in the Offshore Wind Industry Council.
Equinor new energy operations senior vice president Beate Myking said: “We appreciate greatly the collaboration and engagement across the country with businesses, the UK Government and other authorities, and with our OWIC colleagues to agree this ambitious sector deal.
“Equinor is committed to delivering on its goals in advancing wind operations and new projects that will have lower costs, create highly-skilled jobs throughout the supply chain and keep the UK at the forefront of new global markets.”
BEIS said: “The deal will mean for the first time in UK history there will be more electricity from renewables than fossil fuels, with 70% of British electricity predicted to be from low carbon sources by 2030 and over £40bn of infrastructure investment in the UK.”
Glacier Energy Services executive chairman Scott Martin said: “This is a major boon not only for renewable energy producers but also their UK supply chains.
He said continued investment in improving technology, mitigating downtime and maximising efficiency will be a key priority and the sector now has the ‘shot in the arm’ it needs to accelerate progress in these areas.
Martin said: “We expect this announcement to encourage innovation in the offshore sector, which should lead to closer working with academia, quickening the pace of technological change.”
The pact has drawn the support of the Crown Estate, which manages the seabed around England, Wales and Northern Ireland.
The agency said: “In an increasingly busy sea-space, we recognise a collaborative approach will become all the more crucial, ensuring that this ambitious growth happens in balance with the wide range of other interests offshore.”
The sector deal confirms a commitment to hold Contracts for Difference allocation rounds every two years from 2019. The auctions “over the next 10 years” will be funded via a £557m budget.
A new domestic content target for offshore wind farms of 60%, up from the 50% goal set in 2013, is aimed at developing the indigenous supply chain to maximise the benefits of offshore wind to the economy.
The package includes an up to £250m Offshore Wind Growth Partnership, which is aimed at boosting the supply chain, increasing productivity and facilitating innovation.
Separately, a partnership between the Department of Trade and UK offshore wind companies will be formed to support smaller suppliers to export for the first time.
Industry is targeting a fivefold rise in global exports to £2.6bn per year by 2030 with Europe, Japan, South Korea, Taiwan and the United State earmarked as key markets.
The UK government will provide £4m for British businesses “to share expertise globally and open new markets” through a technical assistance programme to help countries like Indonesia, Vietnam, Pakistan and the Philippines to develop offshore wind.
Other measures include the creation of an ‘Offshore Energy Passport’, recognised outside of the UK, designed for workers to transfer their skills and expertise to other energy sectors.
Industry has pledged to enhance work with further education institutions to develop a sector-wide curriculum to deliver a more skilled workforce.
The sector will also set a target during Offshore Wind Week in November for the number of apprentices.
The actions are designed to boost the UK offshore wind jobs count to 27,000 by 2030 from 7200 today.
“This sector deal will drive a surge in the clean, green offshore wind revolution that is powering homes and businesses across the UK, bringing investment into coastal communities and ensuring we maintain our position as global leaders in this growing sector,” said Energy Minister Claire Perry (pictured with other industry representatives at Equinor’s offices in Great Yarmouth).
For industry comment on the deal see here, while there are also stories covering the impact on the supply chain and reaction from Scotland.