The UK can create significant growth opportunities in offshore wind if industry and government can work together to deliver a progressive investment environment. Over the last few years, the UK has been regarded as a global leader in renewable energy development, particularly with offshore wind. Lately, however, much of the economic gain from offshore wind has been lost to markets overseas due to a lack of a domestic supply chain.

Many businesses associated with the offshore wind value chain are outside the UK, from manufacturing components to heavy-lift operators and wind farm developers. Creating a reliable and resilient supply chain has become a competitive landscape worldwide, as more nations embrace offshore wind and other clean energy solutions, such as generating green hydrogen from offshore wind.

The opportunities are profound, with RenewableUK forecasting that £8 trillion will be allocated towards global offshore wind by 2050, resulting in a possible £1 trillion export market for services by 2035.

The UK has many advantages which it can harness, including significant manufacturing and technical experience to manage large and complex offshore energy projects. The shallow waters of the North Sea and strong prevailing winds, combined with an established offshore oil and gas supply chain, provide ideal conditions for offshore energy development. These factors provide the ability to build a new industrial market to support current and emerging renewable energy technologies and export these services globally.

RenewableUK’s new Industrial Growth Plan (IGP) for offshore wind released last month highlights a pathway for the UK to become a leader and benefit from the opportunities associated with offshore wind. The IGP highlights five areas where the UK holds a competitive advantage, including progressive turbine technology, foundations and substructures, modern electrical systems, smart environmental surveying, next-generation installation, operations and maintenance.

A solid UK-based supply chain provides end-to-end services and offers considerable economic benefits. The move to offshore wind will also strengthen the UK’s ability to reach its net zero targets. Supporting the UK’s renewable supply chain should be considered a priority. Creating a strategy that incorporates raw materials, manufacturing, infrastructure, and support plans for renewable energy projects is critical.

The IGP provides a detailed pathway to achieve this vision, but concerns remain regarding investment risks to ensure companies make the necessary investments for long-term success.

To enable the investment required to create a reliable and resilient UK supply chain, there are two possible solutions: supporting and incentivising long-term contracts and building access to affordable capital. Taking a similar path to the oil and gas industry in Norway, offshore wind developers could be incentivised to opt for offering long-term contracts for suppliers, favouring multi-projects expanding for many years, rather than single projects limited to only a few years. This extended investment plan will reduce the risk of supporting the UK’s manufacturing, infrastructure and services sectors.

Supporting businesses that invest and contribute to developing green jobs, greater domestic supply chain content and driving the energy transition are potential incentives benefitting all stakeholders.

Constructing and operating a wind farm involves specialist subsea, topside and marine services. To reduce the costs for developers and customers, there should be more emphasis towards delivering integrated contracts, where a single provider offers multiple services.

Through implementing these factors, the UK can strengthen its position as a leader in the offshore wind industry.  The next UK government must prioritise the next steps for offshore wind and ensure investment in the renewables supply chain is available, to enable significant growth opportunities. By working together, the government and industry can reduce investment risk, build a domestic, resilient supply chain and strengthen the economic and environmental benefits.

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