Offshore renewables in the UK is entering a growth phase that is unprecedented anywhere in the world. Global leadership is being established from the UK in many of the technologies, and implementation techniques of this new industry. A massive revival of supply chain and maritime activity will involve major international collaboration. International companies are investing now to engage with this growth; in the UK and next globally.

The UK’s (now legally binding) targets for CO2 reduction and the use of renewable energy are driving the early phases of a long term transformation to a low carbon economy, with more immediate scaling up of the use of renewable sources of energy. With a requirement to increase the use of renewables from 2.5 to 15% of primary energy by 2020, rapid growth in renewables capacity is needed; using particularly those resources that are most immediately available. With the strongest wind resource in Europe, and with a long maritime tradition, it is no surprise that government programmes are strongly promoting the deployment of offshore renewables capacity. With the UK now leading leading the world in terms of installed capacity, scenario planning suggests that some 30GW of new offshore capacity will be built in the coming decade, largely comprising wind energy, but with marine wave and current energy conversion making an impact in the later years.  

The government’s Renewable Energy Strategy document is due to be launched in July and will outline how the UK will reach its targets.  Industry and government have gained experience with the earlier commercialization programmes of NFFO, and presently the Renewables Obligation (RO), and with Rounds 1 and 2 for offshore wind, and other measures for other technologies.  The results of the bidding for the much larger Round 3 are presently being worked through with licences awarded by the end of 2009. A strategic environmental assessment has been published for the Crown Estate, which is also making equity investments in the early stages of Round Three projects. A number of improvements to the RO have been made already following representations by industry to ensure the acceleration in deployment continues. A task force has been addressing the issues and hurdles facing industry as it moves to a phase of rapid expansion, and a formal process of public consultation has been completed. Measures to overcome the challenges identified are being put in place.  

Investment in infrastructure is being prepared, notably in the transmission grid, and in ports.  Construction work is accelerating; for offshore wind installation into European as well as UK waters. We are witnessing the start of a major growth phase of an industry that is playing to its strengths of natural resource and engineering capability. Companies from compatible industry sectors are moving into offshore wind; notably from the offshore oil and gas industry, marine construction, aerospace and defense, and automotive.  

The scale of expansion, in engineering, construction, installation, and operation, is such that it will clearly attract major international collaboration. International companies are investing in positions in this industry in the UK; and are finding a ready welcome from central government and from the regional development agencies.  

The core of a new global industry is being formed in the UK. It is time to join it.

John Buckley
Head of Trade Promotion
DECC’s UK Renewables