GBP60m budget for new renewables auctions, Offshore Wind Sector Deal imminent
Energy Minister announces £60m budget for new renewables auctions and tells industry Offshore Wind Sector Deal is imminent
The Offshore Wind Industry Council (OWIC) has welcomed keynote announcements by the Energy and Clean Growth Minister Claire Perry setting out the budget for the next round of auctions for new renewable power and confirming that the Government and the offshore wind industry are close to reaching a Sector Deal.
The Minister announced a £60m budget for next year’s Contracts for Difference auctions to be held in May.
Speaking at the Opening Reception of Offshore Wind Week in the House of Commons, Ms Perry said she expected an Offshore Wind Sector Deal to be concluded by Christmas.
OWIC has been working closely with the Government on the Sector Deal, which aims to build on the UK’s global leadership in this clean technology. The UK has installed more offshore wind capacity than any other country, and can deliver at least 30GW by 2030, which will provide more than one-third of our electricity. Through innovation, collaboration and Government policy to secure investment in a pipeline of future projects, the UK industry has slashed its costs, so that new offshore wind farms are cheaper to build than fossil fuel alternatives.
The domestic and export market for offshore wind products and services provided by UK-based firms is expected to be worth £4.9bn a year by 2030, by which time 27,000 people will be working in the industry. With the global market expected to exceed £30 billion by this time, the industry and Government are taking steps to ensure that the UK is ready to benefit from this global growth.
The Co-Chair of the OWIC, Benj Sykes, who is also UK country manager for Ørsted’s offshore wind business, said:
“This is an important announcement by the Minister, taking forward new auctions to deliver on our ambition to meet a third of UK power by 2030. Industry and Government are close to agreement on a sector deal that will set the pathway to 30GW and we need to look at the details of how the next auction contributes to that goal.”
“We welcome the Minister’s announcement that a transformative Sector Deal is imminent. Offshore wind is becoming an industrial powerhouse. As the Minster has made clear, it’s a key technology in our country’s transition to affordable clean power, and the backbone of a low-cost energy system in the years ahead.
“With the right deal in place, we can continue to attract billions of pounds of investment in new infrastructure, secure our power supplies, and create thousands of skilled jobs,
including our supply chain which already extends to every part of the country”
Opportunities for more companies to become part of the burgeoning offshore wind supply chain are being highlighted in a series of supply chain roadshows led by the former McLaren Group CEO and Formula One Team Principal Martin Whitmarsh currently taking place around the country. Aimed at the existing supply chain firms and also companies new to the industry, the focus is on readying the UK to take advantage of the growing global market, which could see export value increase five-fold by 2030.
Having visited Durham earlier this month, the roadshow is in Aberdeen today and will move on to Southampton, Wrexham, Norwich and Hull in the coming weeks.
The roadshows follow the publication last month of the Offshore Wind Industry Prospectus for supply chain companies written by Mr Whitmarsh, supported by the Offshore Wind Renewable Energy Catapult and major companies in the sector including innogy, MHI Vestas Offshore Wind, Ørsted, ScottishPower Renewables and Siemens Gamesa Renewable Energy.
RenewableUK. Press release - GBP60m budget for new renewables auctions, Offshore Wind Sector Deal imminent. URL: http://www.renewableuk.com/news/427658/60m-budget-for-new-renewables-auctions-Of.... [Date Accessed: 04/12/2018].
Policy & Markets
Policy & Markets
Policy & Markets