UK offshore wind sector still ‘confident’ despite tough year

Confidence bent but not broken in offshore wind, although skills shortage and project visibility are areas of concern

Ambitious national targets and a large project pipeline are key to confidence in the sector, said Offshore Renewable Energy Catapult chief executive Andrew Jamieson
Ambitious national targets and a large project pipeline are key to confidence in the sector, said Offshore Renewable Energy Catapult chief executive Andrew JamiesonFoto: ORE Catapult

The UK offshore wind sector remains “confident” of growth despite a year that has seen it buffeted by inflation and supply chain pressures, according to a new survey.

The Offshore Renewable Energy (ORE) Catapult’s second annual survey on the sector found that companies remain optimistic about revenue and employment over the short, medium and long term.

A difficult year has left a mark, however, with 25% of respondents reporting a decline in confidence over the last year, up from 4% in last year’s survey.

The Covid-19 pandemic and war in Ukraine have both played a part in causing spiralling inflation and supply chain issues, with resulting price increases of up to 40% resulting in major project cancellations both in the UK and further afield.
Offshore wind developers staged a no-show at the UK’s recent green energy auction, after the government ignored their warnings that the power price on offer did not reflect the challenging market conditions.
Last month, after this survey was completed, the government boosted the price by 66% to £73/MWh for its upcoming AR6 auction round as it tries to salvage its goal of having 50GW in the water by 2030.

“Ambitious national deployment targets and a large pipeline of projects support a high degree of confidence in continued growth within the UK’s offshore wind industry over the coming years,” said ORE Catapult chief executive Andrew Jamieson.

This will ensure that the UK keeps its standing as a "frontrunner in global offshore wind,” he said, adding that the recent AR6 announcement reflects the government’s commitment to the sector and the "pivotal role" it must play in reaching net zero.

Of the 123 companies that responded to the survey, 51% were from the renewables sector, while oil and gas was the next biggest grouping on 26%. The remainder was split between areas such as transport and construction.

Companies did report concerns about skills shortages, although nevertheless remained optimistic about future employment growth – with 63% predicting an increase over the next year and 89% over the period to 2030.

There was also concern about the visibility of the future pipeline of projects. The survey recommended the development “as soon as possible” of a single national portal developers can use to post upcoming procurement opportunities.

RenewableUK’s Chief Executive Dan McGrail said: “The offshore wind industry is working closely with the government to maximise the number of jobs we can deliver and the amount of private investment we can attract at a time of intense international competition.”

“The industry estimates that the offshore wind supply chain could boost the UK's economy by £92bn by 2040, and the confidence demonstrated in the survey demonstrates we’re on the right track.”

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Published 11 December 2023, 11:32Updated 11 December 2023, 11:32
Offshore Renewable Energy CatapultRenewableUKUKEurope