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Region set to be powered by new opportunities

AHEAD of a major event which will bring energy sector leaders from across the country to the region, an industry expert has predicted a North East boom for businesses in the renewable energy supply chain in the next decade.

The ‘Energy: A Balanced Future’ conference, which gets underway tomorrow night, will bring 400 delegates to the Hilton Hotel in Gateshead to discuss the importance of securing a balanced energy mix to meet future UK demand.

In the build up to the NOF Energy event, a heavyweight energy expert has championed the region’s position as a key player in the renewables market.

Dean Harris of multinational giant KPMG’s northern energy and natural resources team, said: “The region’s businesses in the energy sector and their supply chains stand to benefit from growth in demand for renewable energy as a result of the government target to reduce UK carbon emissions by 34 per cent by 2020.

“Significant investment in this region from a host of high profile companies such as TAG Energy, Clipper, Heerema and Shepherd Offshore, supported by a growing supply chain and industry bodies such as NOF Energy and NAREC are putting the North East at the forefront of the UK’s offshore wind development, with exciting new announcements being made on an almost weekly basis.”

“The opportunities emerging from growth in the offshore wind industry are of great importance to the prosperity of this region, and as continued investment is crucial, this is an area we are working on extensively.”

He added that there is a significant element of capital cost upfront but said it remains critical that businesses are able to access financing to be able to roll out the level of new build that is going to be needed, and that these investments are supported by appropriate policy frameworks.

A recent report by KPMG revealed that offshore wind markets across Europe are now competing against each other for available debt financing, resulting in a fight for funding to get projects off the ground.

This battle has intensified since the UK announced its round three projects, putting extra pressure on the limited funding and supply chain available across Europe to deliver projects.

This was posted in Bdaily's Members' News section by Ruth Mitchell .