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Environmental Audit Committee hears from offshore wind industry

4C Offshore | Tom Russell
By: Tom Russell 05/06/2020 RenewableUK
Offshore wind industry leaders have told the House of Commons Environmental Audit Committee (EAC) that offshore wind will play a central role in the UK’s economic recovery after the pandemic. The EAC will consider the potential of offshore wind and how government policy can facilitate the UK making the best and most cost-effective use of the technology.

The Committee heard evidence of the economic opportunities offered by the sector from the Co-chair of the Offshore Wind Industry Council and Head of Market Development, Consenting and External Affairs for Ørsted Benj Sykes, who said: “The offshore wind industry is investing £50bn in the UK economy over the course of this decade so that we can hit the Government’s target of 40 GW by 2030. This technology is playing a major role in decarbonisation, thanks partly to the Offshore Wind Sector Deal agreed by Government and the industry which provides confidence and certainty for investors and developers.

“Consumers are benefitting too; offshore wind has smashed its cost reduction targets and is now one the cheapest ways to generate new power. We can drive down operation and maintenance costs even more by using robotics and sharing data more widely”.

“We’re continuing to innovate: the UK is the world leader in floating wind which is developing fast and allows us to build in much deeper waters further offshore. Renewable hydrogen, generated using electricity from offshore wind farms, will also play an important role in our energy system. We already have ground-breaking projects in the UK doing this and the technology will grow faster than anyone expects. Government has an opportunity here by supporting innovative projects”.

The Chief Executive of the Offshore Renewable Energy Catapult Andrew Jamieson told the Committee: “At a time when both regenerating the UK economy and delivering on our decarbonisation commitments are more critical than ever, we believe greater innovation can transform the UK’s offshore wind supply chain, create jobs and economic growth and build a long-term, world-leading powerhouse industry. To achieve this, we need to see key measures such as an acceleration in the consenting process and modernisation of the grid.

“Quadrupling our current offshore wind capacity over the course of this decade will provide a tremendous boost to the UK’s economic productivity, in terms of manufacturing and servicing our projects and exporting our expertise around the world”.


RenewableUK’s Head of Policy and Regulation Rebecca Williams told the committee: “The economic opportunity is absolutely huge. As this country exits lockdown and looks for economic solutions, offshore wind is playing a leading role by investing in communities, creating tens of thousands of highly-skilled jobs especially in coastal areas. We need Government to play its part by setting the right framework for the industry to expand fast as possible, such as strategic investments in developing modern infrastructure for ports where turbines are assembled and supply chain companies are based. If this can be achieved, we can make a significant contribution to the Government’s target of net zero emissions”.  


The UK is currently leading the world in offshore wind in terms of capacity, with over 9.5 GW commissioned and more than 13 GW past the construction consent milestone. In the last twelve months, a number of developments have seen the cost of offshore wind fall and government support behind the technology increase as its looks to cut carbon emissions. Earlier this year, the UK's target for installed offshore wind was raised to 40 GW by 2030.


In April, the Crown Estate opened the Invitation to Tender (ITT) Stage 1 for Round 4 of its offshore wind leasing programme. Round 4 is expected to facilitate the installation of at least 7 GW of new offshore wind capacity off the coasts of England and Wales.

In September 2019, the cost of offshore wind dropped around 30%, following the result of the UK government's latest Contracts for Difference (CfD) auction, which provides subsidy support for major renewable energy infrastructure projects. Projects are now being delivered for as low as £39.65/MWh. Successful projects included the
Doggerbank Creyke Beck A, Doggerbank Creyke Beck B, Doggerbank Teeside A, Forthwind,  Seagreen Phase 1 and Sofia offshore wind farms. The cumulative capacity of these awarded projects exceeds 5.4 GW.

As part of the sector deal, signed in March 2019, the government will hold another Contracts for Difference allocation round in 2021, with further auctions approximately every two years. Depending on the price achieved, these auctions will deliver between 1 and 2 GW of offshore wind each year in the 2020s.

For more information on the offshore wind industry in the UK and further afield,
click here.

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