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Britain's offshore power gets "worst of both worlds"

Offshore wind power is not doing as well as it could in Britain despite the country’s ideal conditions, according to a new report from IPPR.

The think tank said the Government is not making the most of the opportunity to become “the Saudi Arabia of offshore wind”.

Low jobs and a high cost strategy is giving Britain “the worst of both worlds”, the report said, while the Government was criticised for doing a u-turn on a 18GW goal for offshore wind supply by 2020.

Instead just 4.4GW is expected to come online between 2020 and 2030, with IPPR arguing the industry risks missing out on an extra 15,000 jobs that could have been created by 2020.

Will Straw, Associate Director at IPPR, said: “The UK’s current policy trajectory could see it achieving a ‘worst of all worlds’ outcome: low volume, low jobs, and high costs.

“This would fail our climate challenge, our jobs challenge, and our rebalancing challenge. Unless Britain ‘pumps up the volume’ there is little prospect of either bringing down the costs of offshore wind or creating domestic jobs.

“An alternative pathway is possible, if the government can bring together an industrial strategy for the sector predicated on a combination of ‘carrots and sticks’.

“The industry should be given the long-term clarity that it needs, and which has been provided in other countries. A 2030 target for the carbon intensity or share of renewables in the power sector is a necessary condition as are long-term 20 year contracts.

“But developers must be expected to drive down costs with a subsidy regime that reduces the strike price over time. Developers and suppliers should do more to provide apprenticeships and sponsor university and FE courses”

IPPR’s report recommended a three-point strategy to build a strong domestic offshore wind supply chain.

Their suggestions included attracting at least two turbine manufacturers, if not more, to generate a cluster of companies further down the supply chain.

Secondly, IPPR said the UK Government should build on its existing strengths in its supply chain, as well as making the most of British expertise in manufacturing.

Lastly, the report said the Government must support export opportunities for British companies as their expertise grows in the supply chain, adding that a new EU renewables target would open up markets for 2030.

This was posted in Bdaily's Members' News section by Miranda Dobson .