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Building a UK Offshore Wind Industry

Building a UK Offshore Wind Industry. Dr Gordon Edge Director of Policy RenewableUK. A word on who we are…. The three most important things. The Market The Market The Market. 32 GW. The UK has a healthy pipeline. 47GW of leases in total…. 20,000. Round 3.

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Building a UK Offshore Wind Industry

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  1. Building a UK Offshore Wind Industry Dr Gordon Edge Director of Policy RenewableUK

  2. A word on who we are…

  3. The three most important things • The Market • The Market • The Market

  4. 32 GW The UK has a healthy pipeline 47GW of leases in total… 20,000 Round 3 …But when are they delivered? Wind Farm Capacity (MW) 10.000 STW 6.4 GW Extensions ~ 1 – 2 GW 4000 3000 2000 1000 0 Installed Under Construction/ Contracted Consented Planned

  5. Near term delivery quite clear Source: UK Offshore Wind: Staying on Track, report by Garrad Hassan for BWEA, June 2009

  6. What developers tell Crown Estate

  7. A more realistic view? Crown Estate 20% attrition, some projects delayed by 1 year 30% attrition, most projects delayed by 2 years • Installed in 2020: • High: 45GW; Medium: 24GW; Low: 14GW

  8. What might this mean for turbine supply? • Final R2 projects and early STW projects using <4 MW turbines • Use of <4 MW expected on early R3 phases where water depths allow • From 2017, 5-6 MW turbines expected to be most common

  9. Can low delivery sustain industry?

  10. Installation vessels need investment

  11. Actions… • Funds from Government • Offshore Wind Demonstration calls have given out £18m to Siemens, Vestas, Clipper, Artemis, Mitsubishi, Burntisland Fabrications and Teeside Alliance Group to fund introduction of advanced technology and manufacturing • Third call just closed • Increasing amounts available from Regional Development Agencies • More funds controlled by DECC and BIS • Focus on infrastructure • Ports Prospectus has excited interest • ‘Ports competition’ announced in Budget • Bidding open soon for £60m of money available to spend on upgrading port facilities and land for manufacturing • Bids from landowners must have manufacturer(s) attached

  12. …leading to turbine success… • Clipper now building blade factory for 75m blades • Mitsubishi to invest £100m in R&D facility for new 6MW turbine • GE and Siemens to base offshore manufacturing in UK as result of the ports competition • Others to follow?

  13. …and success down the supply chain • New facilities for manufacture of towers and foundations to be built • BiFab, TAG, Welcon, Mabey Bridge • JDR Cables hopefully first of a number of cable manufacturing facilities • Opportunities in support vessels being exploited by Alnmaritec

  14. More to be done – demand • Ensuring that there is a strong market is the sine qua non for creating a thriving industry • This requires action in many areas: • Securing confidence in the market: Market support; clarity on future build targets • Avoiding the ‘R2 gap’ • National Renewable Energy Action Plan objective is key • ‘Round Four’ likely to be necessary by middle of this decade • Securing finance for both projects and companies: ‘Green Investment Bank’ and EIB; Bringing in new money – institutional investors • Securing grid connections: Making OFTO work at reasonable cost

  15. More to be done – supply • The market alone is not enough • Direct stimulation of supply is necessary: • Further assistance for companies entering the UK supply chain • Further grants to ensure roll-out of new technology • Tax breaks and enhanced grants, possibly focused on ‘Low Carbon Enterprise Zones’ • Coordination of effort • Action on supply of skilled workers • Promotion of ‘STEM’ subjects to young people and highlighting careers in renewables • Bringing in workers with transferable skills • Avoiding ‘poaching’ by offshore oil and gas

  16. More to be done – technology • Need to establish a more coherent national RD&D programme • Good work going on: e.g. Carbon Trust Offshore Wind Accelerator; Energy Technologies Institute; Technology Strategy Board; Narec facilities • But needs to be better coordinated • Test sites needed urgently – particularly onshore sites for offshore turbines • More funding will be needed, especially for demonstrating new foundation and turbine technology

  17. In conclusion… • The UK is setting out its stall for an offshore wind industry… • And will soon be fully open for business • Join us in building in thriving industry for the UK and for the wider European market

  18. Let’s get to work!

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