Equinor green chief says new UK government can take ‘essentially free’ actions to boost offshore wind

After a tricky year for offshore wind in the UK and with an election looming, an Equinor energy chief has set out several “essentially free” measures the next government could take to boost the sector in its first 100 days in office.

The 4 July election in the UK was high on the agenda at the RenewableUK Global Offshore Wind conference in Manchester last week, with the current Conservative energy minister Claire Coutinho and would-be Labour energy minister Ed Miliband both delivering keynotes.

Energy is a key battleground topic, with Labour promising to turn the UK into a “clean energy superpower” – a sharp contrast to the Conservatives, which under Rishi Sunak have gone backwards on green policies.

But economic credibility is also a key attack point for both parties, with Labour already halving its green investment plans to fend off criticism.

One thing would be to look beyond 2030 in setting targets for the sector, he said. The UK is currently aiming for 50GW of capacity by the end of the decade, while Labour wants to boost this to 60GW.

But Cotter said the next government should put in some binding targets after that “with a plan of how we’re going to get to 2050.”

Because currently although the UK has a binding target of being net zero by 2050 – there is “no path” between 2030 and then.

“The most important thing is that you get certainty, and certainty for the supply chain,” he said. Other countries already have plans that take them beyond 2030. “We don’t.” And that could mean investments are lured elsewhere.

“So if we’re pushing for investment and we’re all trying to get the same equipment globally, a new government could very simply say, ‘Well, this is what it means by 2040. This is what it means by 2045.’”

It would also be great to “de-politicise” the budget set for the UK’s annual contracts for difference (CfD) renewables auction, he said.

The current CfD system has come under increased scrutiny after offshore wind developers sat out of the last edition due to the low price on offer for power – blowing a hole in the UK’s offshore wind ambitions.

Because investment certainty for developers and the supply chain always comes from “how believable” it is that projects will materialise, he said.

Cotter also highlighted the importance of sending the right signals on upgrading the UK grid. Currently, he said that countries recognise that much of their grid systems are “built like a body,” with centralised generation, the "heart," pumping blood out to the capillaries.

“We’re putting offshore wind into the equivalent of a fingertip. It’s tough. And if you do that, you need to rewire your body.”

“Now if they're sitting there saying, I know that I need to invest for future demands, will they pick a country that hasn't necessarily got believable targets and the pipeline to get there?”

“So while I think everyone's saying the right thing, the government can do really simple things to give that bit more certainty.”