Offshore wind sector ‘worth billions to UK economy’

Britain’s offshore wind industry delivers huge economic benefits to the UK economy, which could be worth as much as £2.9bn by 2030, according to a new report by the Offshore Renewable Energy (ORE) Catapult. 

The report: The Economic Value of Offshore Wind: Benefits to the UK of Supporting the Industry shows that the UK economy is already reaping the rewards of a maturing offshore wind sector. But the latest figures suggest that continued cost reduction – resulting in lower levels of public financial support being required – coupled with increasing amounts of UK content in projects being developed, will result in a significant increase in the economic return for the UK. 

The report says that supporting UK offshore wind is cost-benefit neutral with a strike price of £105 and 30% UK content. But industry is already doing better than this, and each additional 10% of UK content is worth a net £500–£600mn, while each £10 strike price reduction is worth £240–£350mn. 

The gross value added to the UK per gigawatt installed, given that current UK content is 32%, is £1.8bn – and is estimated to increase to £2.9bn by 2030, if a projection of 65% UK content can be achieved.

 Continued public support for, and investment in, the UK offshore wind industry will therefore create a virtuous circle of cost reduction and economic growth, says the report.

Andrew Jamieson, Chief Executive of ORE Catapult, said: ‘Continuing technological innovation in key supply chain areas such as offshore wind turbine blades and foundations, and developing skills in, for example, offshore operations and maintenance, also bolsters the UK economy through the potential export of skills, products and services to the global marketplace.’

BT has signed a new power purchase agreement worth £185mn over 15 years with a Scottish wind farm to further support the provision of new renewable energy in the UK. Thirteen wind turbines at Stroupster, in the far North of Scotland, now provide the company with 100 GWh per year of electricity. BT now has agreements with four wind farms in the UK. The company says it has reduced its carbon emissions from its operations every year since 2008, and has been purchasing 100% renewable energy in the UK since 2012.