06 Feb 2012
The Department of Energy and Climate Change (DECC) and the UK's offshore wind industry will today unveil new plans designed to ensure that UK-based firms will provide more than half the equipment to the next generation of offshore wind farms.
The plan will be confirmed at the latest meeting of the Offshore Wind Developers' Forum co-chaired by energy minister Charles Hendry. It is expected to set out a vision for bolstering the UK's burgeoning offshore wind supply chain.
The offshore wind sector has faced criticism from some quarters due to its reliance on imported turbines, parts and workers to build the first generation of wind farms. These have established the UK as the world's leading offshore wind market.
The turbine manufacturing market is dominated by foreign firms, such as Denmark's Vestas, US-based General Electric, Spanish firm Gamesa and Germany's Siemens. This has prompted accusations that the majority of the money invested in new offshore wind farms flows out of the country.
However, the government and the industry have responded to the criticism with a series of measures and incentives designed to bolster the UK's supply chain and convince turbine manufacturers to locate in the UK.
About £60m has been pledged for investment in port upgrades, while the government is hopeful that its commitment to a huge expansion in offshore wind farm capacity will convince more firms to invest in the UK.
DECC said today that there is already evidence that the strategy is working as the recent Robin Rigg wind farm boasts 32 per cent UK content.
Hopes are also mounting that the new 50 per cent content target can be met over the next few years after a series of recent announcements from manufacturers that have committed to locating new factories in the UK.
For example, Siemens announced plans for a turbine manufacturing plant in Hull late last year, while Vestas is preparing a planning application for a similar facility in Kent. Meanwhile, UK-based engineering firm David Brown last week announced a deal to provide turbine gearbox technology to Samsung.
In related news, DECC today provided an update on its Local Energy Assessment Fund, announcing that 155 community energy projects have now been awarded a share of £5.1m to support small-scale renewable energy and energy efficiency projects.
Newly appointed energy and climate change secretary Ed Davey welcomed the news, urging more communities to get involved in efforts to save energy.
"The big national challenges of keeping the lights on and emissions down can be tackled in small ways in our homes and local communities," he said in a statement. "These grants are designed to nurture the ideas and enthusiasm of communities up and down the country who want to cut energy use, cut emissions and save money."
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Vision?
It is hard to see how one can honestly describe 'shutting the stable door....' with the benefit of hindsight as a visionary policy. This vision was required at least fifteen years ago, to renew British manufacturing by investing in the green technologies that have been deployed to date, as well as the new designs still to be developed. Spending public money to persuade foreign companies to build old technology in Britain is the worst-case scenario.
Posted by Dave Smart, 06 Feb 2012