The UK government should announce clear targets for offshore wind and commit to an extended pipeline of bi-annual Contract for Difference auctions of over 2GW a year to help boost the local supply chain, according to a new report.
The call is one of several recommendations made in ‘The UK Offshore Wind Industry: Supply Chain Review’ report produced by former McLaren Group chief executive and Formula One Team Principal Martin Whitmarsh for the Offshore Wind Industry Council.
The review also suggests that offshore wind developers should publish clear life-cycle plans to show supply chain companies what they need, and when they will need it.
“We should now encourage businesses to embrace the opportunities in offshore wind, establish know-how and global competitiveness to create enduring employment and export revenues as the worldwide market opportunity accelerates,” the report said.
“In view of the very ambitious scale and cost targets now being set for the offshore wind sector, UK business needs to step up and provide a competitive offering and complement the existing supply chain,” it added.
“Furthermore, UK companies need to be encouraged to offer innovative and cost-effective services and technology to the sector. If this can be achieved, UK businesses and the overall economy can greatly benefit from the substantial offshore wind export opportunities that are now opening throughout the world,” the review said.
Whitmarsh has worked over a year on the review with Clark MacFarlane, managing director of Siemens Gamesa Renewable Energy UK, with assistance from industry experts from Innogy, MHI Vestas Offshore Wind, the Offshore Renewable Energy Catapult and ScottishPower Renewables.
The report also urges the government to set more ambitious targets to accelerate the transition from fossil fuels to renewables, while encouraging more consumers to buy electricity generated from low carbon sources.
It also suggests that households should be encouraged to store, use or sell electricity they generate from electric vehicles and domestic batteries as part of a modern, flexible energy system.
OWIC co-chair Benj Sykes said: “The review highlights the extraordinary scale of the many multi-million pound opportunities for UK companies to become part of our fast-growing supply chain.
“Industry and government are finalising a Sector Deal which will set out how offshore wind can become the backbone of our energy system.
“This review makes clear that an ambitious, long-term strategy is vital to bring forward new investment in our supply chains and secure export growth.
“We fully expect to have the Sector Deal agreed with government in the coming weeks, and look forward to responding to Martin’s recommendations later in the year as implementation of the deal gets underway.”
The Sector Deal aims to deliver at least a third of the country’s electricity from offshore wind by 2030, OWIC said.