Attendance at the All-Energy conference in Glasgow gave Lucy Brice gained in-depth insights into the key opportunities and challenges for offshore wind power
With an extensive pipeline of upcoming wind farm projects across the UK and Ireland, All-Energy highlighted how offshore wind power is critical to achieving net zero and curbing the impact of climate change globally.
Wind energy stands to become the most cost-effective source of electricity in the future and its expansion is a key element of the new UK government’s plans to reduce energy costs. This progressive industry provides huge potential for developers and contributes to the reduction of our environmental impact.
Key opportunities provided by offshore wind power
There are clear environmental benefits to offshore wind power. These include reducing our reliance on fossil fuels, lower noise pollution than onshore windfarms, supporting our journey to net zero and minimising the effects of climate change. At the All-Energy conference, there was an emphasis on reframing offshore wind opportunities to promote benefits to the economy, national security and prosperity. Offshore wind can support a decarbonised economic future, with the following opportunities.
Job creation and economic growth
Increased investment in offshore wind will provide a significant number of domestic jobs in manufacturing, construction, installation, operation and maintenance and research and development. Upskilling will be required as there is a shortage of skilled workers to support the growing demand for construction, installation and maintenance of wind farms. The offshore wind industry opens a new career path within the green economy – with many skilled workers already existing within the oil and gas industry, there is a strong resource pool to tap into alongside promoting new entrants into the industry.
In coastal towns, offshore wind power offers an opportunity to revitalise industries for job creation and economic growth. At All-Energy, it was highlighted that many workers in these areas, for example in Aberdeen, already have expertise in the floating technology previously developed for oil extraction. These workers, many on the cusp of retirement, have the ability to upskill workers of today, sharing their knowledge and experience. This removes the requirement for developers to start from scratch and will enable utilisation of existing knowledge to excel in the growth of floating offshore wind.
National energy security
Our national energy security will be augmented through increased use of offshore wind power, strengthening our ability to be self-sufficient. With the current geopolitical landscape increasingly unstable, many countries are turning to offshore wind to decrease their dependency on power from elsewhere.
As electricity bills continue to sit well above pre-Ukraine-war levels and with Ofgem forecasting this trend to continue, increased use of offshore wind power is crucial to reducing bills. This provides an excellent opportunity for developers to support this domestic journey to creating a more resilient energy system. By adding offshore power to the grid, this will increase supply, providing additional security in energy usage for individuals and businesses across the UK.
Key challenges to the future of offshore wind
While a future with increased investment in offshore wind power can provide economic and environmental benefits, there are challenges to overcome in the journey to achieving these benefits.
Geopolitical landscape
The current geopolitical landscape, including the US’s withdrawal from the Paris Agreement, makes the efforts of multilateral bodies, such as the United Nations, to reduce the impact of climate change all the more difficult. In Glasgow this week, Jonathan Cole, Chair of the Global Wind Energy Council, suggested the way forward is plurilateral agreements of the willing to support offshore wind power. Although this is yet to come into fruition, it is a potential solution to look out for.
Consenting frameworks
Further challenges discussed included the uncertainty driven by the complex policy and legislative framework surrounding consenting in the UK. This creates extreme time delays with instances of projects taking up to ten years from initial development to construction. This has also created the supply chain’s lack of confidence in the pipeline of work, preventing growth and progress.
Funding
There are financial resources available including the National Wealth Fund and Great British Energy. At All-Energy, the Chair of Great British Energy Jürgen Maier was clear about the intent to support delivery of strategic energy projects and make the UK a clean energy superpower. He referenced the £8.3 billion in funding they have been committed by the Government has committed, which is likely to encourage billions of pounds in private investment by creating certainty of project stability. This includes the £300 million Keir Stamer has committed to invest in domestic offshore wind supply chains through Great British Energy. However, the uncertainty of developers in how to access this funding is an issue that may continue to stall development, and many argue more public funding is required to truly make the most of this opportunity.
How can EiB help?
Rest assured, there is large investment potential in the offshore wind market, providing great opportunities for developers, confirmed by numerous speakers at All-Energy. At EiB, we are experienced in supporting our clients in the renewables sector to strategise, negotiate and craft compelling bid submissions for private and public sector tenders for offshore wind power. With the opportunities for wind power looking up, our strong team of bid directors, writers and managers is ready to use our expertise to support our clients to win this crucial work and contributes toward the UK and Ireland tapping into its potential to become an offshore wind superpower.
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