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How can the UK harness the opportunities of the expanding global offshore wind industry?

The UK has already established itself as a leader in offshore wind but Duncan Clark, the head of Orsted UK & Ireland, highlights that getting industrial policy right is vital to reaping the economic benefits.

The UK has witnessed massive success within the offshore wind industry, already generating over 15% of the nation’s electricity from UK offshore wind farms and collectively creating a sector that supports nearly 30,000 people. To achieve this, billions have been invested in the economy. Studies suggest that by 2030, offshore wind will generate around 60% of the UK’s electricity.

It’s good to recognise the success, but policymakers and the broader industry should now be considering the next stage for offshore wind. What will success look like for the wind industry and the supply chain in the future? What measures does the Government need to focus on to enable further success?

With the rising ambition for offshore wind, the global supply chain must increase to satisfy this demand, which offers a significant opportunity. The UK must give itself the best chance to harness this and support the domestic, European and Global markets in fixed and floating wind structures. To achieve this, we require:

-Continued support of the existing supply chain in the UK. Building on the existing supply chain should be the starting point for future industrial policies. For example, Orsted has had major contracts with over 200 suppliers in the last few years, and these businesses must be supported.

-If the UK wants to harness the economic benefits from global offshore wind growth, it must attract investment in new and enhanced manufacturing facilities. To attract this investment, the UK business environment must be appealing, which requires investing in ports and other infrastructure and supporting organisations looking to invest in the UK. The UK is competing globally to secure investment from supply chain businesses and encourage existing companies to stay and expand in the UK. Creating an attractive business environment is critical for policymakers and industry. The UK has a huge opportunity to develop and scale a floating offshore wind supply chain over the next decade. To enable this means starting now, but acknowledge that the largest investment in offshore wind over the next decade will be with fixed seabed projects, and we must continue to secure investment in this market.

-The long-term plan for the UK industry is to compete and secure global contracts in the offshore wind industry. If more UK businesses can compete internationally, that will define the level of success for the UK offshore wind industry.

The Department for Energy Security and Net Zero has focused on supporting the UK supply chain in recent years. New measures will manage and reward developers for using UK suppliers, especially in disadvantaged regions, which will help us achieve this goal. We also need closer collaboration within Government, especially from the Department of Business and Trade and the Treasury, as well as from the regional government.

The UK has created one of the biggest markets for offshore wind, built a resilient supply chain and transformed the economies of many coastal regions. We must introduce the necessary industrial policies so the UK can harness the rewards during the next decade of global offshore wind expansion.