The UK government should increase the target for local content in offshore wind farms to 60% from 50% currently, according to a new report by former Energy Minister Michael Fallon.
The report, ‘Winning Locally, Going Global’ commissioned by Wilton Engineering, said a higher target should be set as the 50% goal is close to being met by some wind farm developers.
To support the new goal a supply-chain accelerator programme should be set up to encourage collaboration, innovation and help new entrants, Fallon said.
The proposed programme would build upon the government’s Supply Chain Competitiveness initiative to target areas, such as the north east, that could become centres for offshore wind technology.
The report also recommended that at least 50% of capital expenditure for offshore wind farms should be sourced within the UK.
Other recommendations include more transparent reporting on expenditure for wind farms, agreeing a so-called ‘sector deal’ between the UK offshore wind industry and government and putting offshore wind at the heart of the country’s Industrial Strategy, on equal status with other sectors such as pharmaceuticals, defence and aerospace.
The government should also announce fixed-auction and licensing-round dates to reduce uncertainty for companies, the report said.
Fallon said: “This is a pivotal moment for offshore wind. The huge investment to date has repaid the confidence shown by the government in its future over the last six years.
“The priority now must be to ensure that more of this investment leads to the bigger prize, a genuinely competitive UK industry that can help build the wind farms now being envisaged in the Indian Ocean, the Sea of Japan and off the north-eastern US seaboard.”
Positive policy and planning could deliver over 25,000 jobs in the next 10 years, he added.
Siemens Gamesa UK managing director Clark MacFarlane, representing the Offshore Wind Industry Council, said: “We welcome the ambition expressed in Sir Michael Fallon’s report to grow the UK’s offshore wind supply chain.
“The case for ministerial support is clear, and we are working with government on a sector deal that would unlock even greater investment in our industry.”
Image: reNEWS
UK should ‘boost’ supply chain goal
By EBS