UK will miss offshore wind target by 18 years

The UK is set to miss its 2030 offshore wind target by almost two decades, a new report by the Institute for Public Policy Research (IPPR) has suggested.

At the current pace of installation, the report says, the UK will miss its 2030 target to deploy up to 50GW of offshore wind by 18 years. As such, the country needs to triple the rate at which it installs offshore wind farms to get on track.

One of the core concerns raised is in regards to the nation’s low levels of manufacturing during a period of increasing global supply shortages, which it describes will be a “critical barrier” in the near future.

It highlights that in every major component of the wind supply chain – nacelles, blades, towers, foundations and cables – the UK fails to be in the top three European nations in terms of manufacturing capacity.

“It only ranks fourth in cables and blades, with two major manufacturing plants. Crucially, the UK does not host any nacelle manufacturing facility or any major player specialised in wind towers,” the report adds.

Yet if it had exploited its market for wind installation to the same extent as other leading European nations in wind manufacturing such as Denmark, Germany and Spain, it would have generated up to an additional £30 billion between 2008 and 2022. This, the report said, represents a “missed economic opportunity”.

IPPR does however suggest that the UK has a “unique competitive advantage and is well positioned to increase its specialisation in wind manufacturing”, referring to the country’s “pre-existing related green industries, the prospective size of its wind deployment market, and the distinctive innovation ecosystem in the sector”.

It argues that by producing more wind components domestically, the UK could reduce its import and energy dependence, while reviving its manufacturing industry.

The think tank said that in order to capture the economic benefits of this, the UK can and should build at least one additional blade factory, two new nacelle and tower factories and two extra foundation factories, in less than five years.

“An investment of £3.2 billion in UK manufacturing facilities could generate tens of thousands of direct and indirect jobs, particularly in small and medium businesses,” IPPR said.

The report makes a number of policy suggestions, including for the government to:

• Fix the current demand problem by ensuring developers have long term contracts, with the introduction of non-price criteria in Contracts for Difference;
• Support businesses to expand capacity across the whole wind manufacturing supply chain through targeted grants and joint public-private investment, and;
• Upgrade infrastructure by renovating ports and naval vessels to deliver and install large-size offshore wind farms.

Simone Gasperin, associate fellow at IPPR, said: ‘‘The UK has missed out from becoming a world leader not just in wind power, but also in wind manufacturing. This has cost thousands of jobs, billions for the economy, and is putting future net zero targets for wind deployment at risk.

“However, the UK is uniquely placed to become a world leader in manufacturing equipment for offshore wind farms. The government should grasp this opportunity with both hands and do all it can to maximise the manufacturing opportunity of its offshore wind power targets.’’