UK Prime Minister Sir Keir Starmer has announced an initial £300m of funding through Great British Energy to invest in supply chains for domestic offshore wind.
It is expected that the investment will directly and indirectly mobilise billions in additional private investment – helping de-risk clean energy projects and supporting thousands of jobs and revitalising the UK’s industrial heartlands.
The public investment complements the £43bn of private investment pledged for clean energy projects since July.
The fast-tracked funding, brought forward by the Prime Minister ahead of the Comprehensive Spending Review, will allow Great British Energy to invest in new supply chains for offshore wind manufacturing components such as floating offshore platforms and cables, according to the government.
This builds on the government’s investment in domestic supply chains through initiatives such as the Clean Industry Bonus and the National Wealth Fund.
As part of the government’s modern Industrial Strategy, the new investment in domestic offshore wind is part of the Prime Minister’s drive to ensure that the clean energy future is “built in Britain”.
The funding will ensure that the nation builds resilient domestic supply chains for components which are essential to delivering clean power by 2030, the government said.
Sir Keir said: “Delivering the Plan for Change means winning the race for the clean energy jobs of the future, which will drive growth and help us reach clean power by 2030.
“That is why I am bringing forward much-needed investment in our domestic offshore wind supply chains, strengthening our security and creating good jobs for our welders, electricians, and engineers.
“Let my message to the world go out: come and build the clean energy future in Britain.”
Energy secretary Ed Miliband said: “It is only by taking back control of our energy that we can protect families and businesses from the rollercoaster of global markets we don’t control.
“That is why this Government is doubling down on our clean energy superpower mission – driving economic growth, good jobs and investment across our country.”
The Prime Minister, Ministers and business leaders will gather in London today for the two-day Summit on the Future of Energy Security – hosted by the UK Government and International Energy Agency – as countries take action to protect themselves from future energy shocks in these unstable times.
Leaders from around the world, including the President of the EU Commission Ursula von der Leyen, will come together to address the global challenges and opportunities of speeding up the clean energy transition.
The Energy Secretary Ed Miliband, Business Secretary Jonathan Reynolds, the Minister for Investment Baroness Poppy Gustafsson, National Wealth Fund CEO John Flint and Great British Energy Chair Juergen Maier will today write to global clean energy developers and investors inviting them calling on them to invest in Britain.
It follows the government announcing a series of pro-growth measures including major reforms to speed up grid connections and overhaul planning rules.
Dan McGrail, interim chief executive of Great British Energy, said: “Great British Energy will help the UK win the global race for clean energy jobs and growth by investing in homegrown supply chains and ensuring key infrastructure parts are made here in Britain.
“We will work closely with businesses across the clean energy sector to get funding out as fast as possible and get projects off the ground.”
Deputy chief executive of RenewableUK, Jane Cooper, added: “There’s a huge opportunity for the UK to secure thousands of new jobs and supply chain investment in the sector, which will make our home-grown energy supply even more secure.
“The Prime Minister’s funding will be critical to ensuring the UK grasps the industrial opportunities in the offshore wind supply chain, at a time of intense global competition for clean energy investment.
“By nurturing existing UK companies, and ensuring we’re a competitive location for international investors, there’s an opportunity to triple our manufacturing capacity over the next decade, adding £25bn to the UK economy and creating an additional 10,000 jobs in the supply chain.
“This new Government funding is a clear signal of intent to secure those priorities and is vital to unlocking further co-investment from industry.”
Claire Mack, Chief Executive of Scottish Renewables, said: “This new funding announced today is a welcome boost for Scotland’s offshore wind sector which is central to our clean power future.
“Industry has repeatedly called for strategic ahead-of-time investment in domestic supply chains to ensure the economic benefits of offshore wind are captured in Scotland.”
The funding for supply chains will be made available as part of the £8.3bn for Great British Energy over this parliament, with individual companies able to apply for grants if they can show that they will produce long-term investments in UK supply chains.