Offshore wind ‘a £92Bn opportunity for UK economy’

The report, Supply Chain Capability Analysis, produced by the Offshore Wind Industry Council (OWIC) and the Offshore Wind Growth Partnership (OWGP), outlines measures that industry and government can take to strengthen the UK’s offshore wind supply chain and in doing so, maximise the socioeconomic benefits that offshore wind can bring.

The UK has the second-largest installed offshore wind capacity in the world, with a government target to more than treble this capacity by 2030 to 50 GW, including 5 GW floating offshore wind. This expansion represents a significant increase in demand for the equipment and services required to develop, construct and operate offshore windfarms. Meanwhile, the expansion of offshore wind in other countries provides an opportunity for the UK to export its equipment, services and expertise abroad.

The analysis finds that targeted intervention in the UK supply chain has the potential to bring £92Bn of GVA into the economy. While the UK has had notable success stories and received significant investment from developers and government, the analysis recognises more could be done to keep the UK’s supply chain resilient – with UK suppliers competing with those of other countries for vital contracts, and the jobs and opportunities they bring.

The analysis outlines some key areas of advantage for the UK supply chain and areas for potential improvement. 

Among the report’s key recommendations are to take a systemic view of the supply chain, prioritising long-term economic value creation in areas where the UK could build globally competitive industrial capacity.

OWIC vice-chair Sophie Banham said, “The UK has some world-class factories and organisations involved in renewables but we are in a global race for cleaner energy. We need to keep our foot firmly on the accelerator to avoid slipping behind and losing the advantages we have gained.

“This report and the detailed analysis that sits behind it, shows how the UK can develop its supply chain to maintain a leading role through a co-ordinated Industrial Growth Plan. 

“By intervening in key areas, we can ensure the UK’s ambitious deployment targets are achieved in a way that maximises benefit to the UK through the development of industrial clusters, inward investment and significant job creation.”

OWGP chair Tim Pick said, “The UK is one of the world leaders in offshore wind in terms of installed capacity. But we are only really scratching the surface when it comes to the full potential economic and social benefit of offshore wind, which we can only capture by maturing our domestic supply chain. 

“Achieving this requires a co-ordinated strategy from both public and private sectors, with industry programmes like the OWGP playing an important role. There are significant lessons to be learned from the aerospace and automotive sectors where the UK has nurtured a leading position. This new analysis allows us to better target our support to UK supply chain companies, foster the development of new technologies, and support a just transition - keeping the UK competitive on the global stage.”