The British Wind Energy Association (BWEA) has launched report on the wind, wave and tidal sector's called Powering a Green Economy: Wind, wave & tidal's contribution to Britain's industrial future. The report sets out the budget to release GBP10 billion of private sector investment, of which GBP2.5 billion to be spent in the UK on installation and construction work. This would p pave the way for the creation of a GBP65 billion British wind and marine energy sector by 2020.
Launching the report BWEA chairman Adam Bruce said The UK has a GBP10 billion pipeline of shovel ready wind energy projects that are being held up by current economic conditions.
If the Government takes the right action in the Budget tomorrow it can release this private sector investment, which will both provide an immediate boost to the economy and build the supply chain to deliver the next generation of offshore wind – with all the new employment opportunities that will present.
There are about 2 gigawatt (GW) of offshore schemes (worth an estimated GBP6 billion) ready to be built and a further 3 GW of onshore projects (worth GBP4 billion) which could be operating within the next two to three years. Options for releasing this private sector investment include encouraging funding from sources such as the European Investment Bank for schemes struggling to raise project finance; underwriting the energy floor prices in generator-supplier contracts; socializing offshore grid costs and increasing the offshore ROC multiple.
Today’s report also calls on the government to take steps necessary to deliver on the long-term industrial opportunities presented by the expansion of offshore wind over the next decade, such as:
Strategic support to develop ‘wind industrial hubs’ of research institutes and factories for manufacturing and operations suppliers.
Long term investment in infrastructure such as a new offshore grid network, local ‘smart’ grids and upgraded port facilities.
Action to tackle the skills shortage in the power sector, with the creation of 2,000 new renewables apprenticeships a year.
While only 1% of the existing world wind market is offshore (some 1.5 GW of generating capacity), up to 40 GW of new sites will be developed in European waters over the next decade. At least half of those sites will be in the UK, creating a tremendous new opportunity for UK based manufacturing, installation and operations jobs.
The BWEA analysis of the industry demonstrates that at least 20 GW of UK offshore wind projects are deliverable by 2020. Together with onshore development this would create a GBP65 billion UK wind sector within a decade. Up to 60,000 UK based jobs could be created in the new sector, if the plant needed to supply the industry is located in Britain.
Adam Bruce said There is now a wide consensus over the industrial potential offered by wind and marine renewables. The private sector is willing to invest billions to deliver a low carbon economy, and looks for further partnership with Government to clear both the short and long term obstacles to investment.