BRITAIN is failing to make the most of the opportunity to become a world
leader in offshore wind energy, a new report from an influential think tank
has warned.
WINNING THE RACE: The report calls on UK Government ministers to show more
hunger for renewables technology and warns of the consequences of failing
to do so. Picture: Brodie Duncan

The Westminster Government is also accused of sending weak and unclear
signals on renewables which could leave the industry with high costs but
few jobs.

In particular there has been a failure to attract turbine manufacturers,
the left-leaning Institute of Public Policy Research (IPPR) found in its
report.

Environmentalists say it underlines the need for the Scottish Government to
do what it can to get firms to locate north of the Border.

The report says the UK has ideal building conditions, with large areas of
seabed in shallow waters, close to shore, but warns the Government is not
doing enough to bring down costs and secure domestic jobs in offshore wind.

It says the Government has backtracked on its ambition to secure 18
gigawatts (GW) of offshore wind by 2020 and expects just 4.4GW to come
online between 2020 and 2030.

It adds that the industry risks missing out on an extra 15,000 jobs that
could be created by 2020 and that the UK Government needs to attract at
least two turbine manufacturers, preferably more.

The report says that, while failure to do so would not be fatal to the
prospect of a strong domestic supply chain, success would be a boost. This
is because these firms are able to attract a cluster of other companies
further down the supply chain, like in Denmark.

Will Straw, associate director at IPPR, said: “The UK’s current policy
trajectory could see it achieving the worst of all worlds: low volume, low
jobs, and high costs.

“Unless Britain pumps up the volume there is little prospect of either
bringing down the costs of offshore wind or creating domestic jobs.”

He said an alternative strategy for the sector was needed based on carrots
and sticks.

A 2030 target for renewables in the power sector is a necessary condition,
as are long-term 20 year contracts, he claims. But he said developers must
be expected to drive down costs with the correct subsidy regime, and do
more to provide apprenticeships and sponsor university and further
education courses.

A Department of Energy and Climate Change (DECC) spokeswoman said:
“Offshore wind, built in the right place, is an important contributor to
our energy mix and we expect to see more capacity built through to 2020 and
beyond.

“We have provided certainty to offshore wind investors by confirming the
level of support available under the Renewables Obligation and, earlier
than expected, publishing draft strike prices for contracts in the future
electricity market.”

She said the ranges set out were not targets but indicative estimates of
the contribution offshore wind could make and added: “We are continually
enhancing our understanding of each sector’s potential in the context of
likely demand.

WWF Scotland director Lang Banks said the report was a shot across the bows
of the Coalition. He added: “It also reinforces the need for Scottish
Ministers to do all they can to encourage turbine manufacturers to locate
here and capitalise on the existing offshore oil and gas expertise in
Aberdeen and the north of Scotland.”

He said studies estimated Scotland’s offshore wind industry could create
28,000 jobs by 2020 and contribute over £7 billion of investment to the
economy.

A Scottish Government spokeswoman said: “This report further endorses the
call by Scottish Ministers to their UK counterparts urging them to set a
decarbonisation target now rather than waiting until 2016.

“Unless the UK Government acts now to address this issue, projects coming
on to the system before 2020 are likely to be at high cost and there could
well be an investment hiatus for projects coming on after 2020 and as a
result the UK misses out on a real opportunity to maximise its offshore
wind potential.”


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