OFFSHORE WIND VISION For more information, visit: The UK needs offshore wind and the industry has shown it can deliver. Continued momentum is important to build investor certainty, maximise the economic opportunities for the UK and accelerate efforts on cost reduction. A trajectory through to 2025 for offshore wind will provide the UK with the best opportunity for cost effective decarbonisation. As recommended by the Committee on Climate Change and others, a clear intent to see a build rate of 1 – 2GW (delivering at least 18GW by 2025) would have the following effects:* • Create further UK jobs by giving the long term confidence to recruit, train and develop local staff. • Bring down the cost of offshore wind energy faster to a level of £80 - 90/ MWh by 2025 by encouraging further investment in cost saving technology. • Create a continuous pipeline of projects that would stimulate competition between developers and suppliers, and build a strong and competitive market for project finance, further reducing the cost of energy. • Enhance the leadership role for the UK in this field and create export opportunities for UK based companies. * Committee on Climate Change, Meeting Carbon Budgets – Progress in reducing UK emissions: 2015 Report to Parliament The benefits of clarity £
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OffshOre Wind Vision
For more information, visit:
The UK needs offshore wind and the industry has shown it can deliver. Continued momentum is important to build investor certainty, maximise the economic opportunities for the UK and accelerate efforts on cost reduction. A trajectory through to 2025 for offshore wind will provide the UK with the best opportunity for cost effective decarbonisation.
As recommended by the Committee on Climate Change and others, a clear intent to see a build rate of 1 – 2GW (delivering at least 18GW by 2025) would have the following effects:*
• CreatefurtherUK jobs by giving the long term confidence to recruit, train and develop local staff.
• Bringdownthecostofoffshorewindenergyfastertoalevelof £80 - 90/ MWh by 2025 by encouraging further investment in cost saving technology.
• Createacontinuouspipeline of projects that would stimulate competition between developers and suppliers, and build a strong and competitive market for project finance, further reducing the cost of energy.
“offshore wind is on track to be cost competitive with other new forms of power generation by the mid 2020s. By 2030 offshore wind could supply 35% of UK electricity demand, providing over 50,000 skilled jobs.”
A survey of existing UK offshore wind farms shows that UK
content levels were at 43% by 2014. The sector is on track to
reach the target of at least 50% UK content by 2020. *
Three key messages
The sector is already delivering and can do so much more
Growing the UK supply chain
1) Delivering much needed energy infrastructure quickly
• Weareconsistentlydeliveringourprojectsonschedule and to budget.
• Inthelastfiveyearswe’vebuilt3.7GW capacity – enough to power 3 million homes.• By2030wecaneasilybuild30GWcapacity,enoughtomeet 35% ofUKelectricitydemand.
2) Reducing costs through investment in new technology and increased competition
• Therehasbeena38% reduction in government subsidy.
• Offshorewindisontracktobecostcompetitivewith other new power sources by the mid 2020s.
3) Helping economic recovery
• Thesectorhasalreadydelivered£9.5bn of large infrastructure projects, with plans to deliver another £20bn by 2020 and £30bn by 2025.
• Thesectorhascreated13,000 UKjobs,withparticulargrowth intheNorthernPowerhouse,drivingregenerationofUKmanufacturing and creating skilled jobs for the 25 year lifetime of wind farms.
• TheUKcontentofoffshorewindfarmsisnowabout40% and well on track to achieve the industry ambition of 50% by 2020.
Offshore wind is getting more productiveOffshorewindhasoneofthehighestloadfactorsofallrenewable technologies, and in the future will continue toimprove.Thenewestoffshorewindfarmsarealreadyoperating at load factors of up to 50%.
The sector is attracting global investmentSince 2010, the sector has attracted £9.5 billion of investment.Encouragedbyourreputationforoperatingstable and predictable regulatory regimes for renewable energy, global investors will provide another £16 – 21 billion by 2020 to help bring the total installed offshore wind capacity to over 10GW.
Offshore wind is getting cheaper Offshorewindsubsidieshavefallenby38%*andthetechnology is on track to be cost competitive with other new generation in the mid 2020s, even once system costs are taken into account.
(Source:BVG,July2015,Deliveringmoreforless)
Creating skilled jobs around the countryOffshorewindalreadyprovidesemploymentto13,000peopleacrosstheUK.Withcontinueddeployment,thisfigure will grow as industry invests in skills and training. By2030therecouldbeupto50,000peopleworkingdirectly in the offshore wind industry in the development, manufacture and operation of offshore wind farms in the UKandoverseas.