The UK is losing thousands of jobs and billions to the economy due to its slowness in manufacturing and installing offshore wind farms, according to a new report from the Institute for Public Policy Research (IPPR).
At the current rate of installation, the UK will not reach its 2030 offshore wind target until 2048, almost a generation behind. According to experts, the United Kingdom must triple the pace of installation of offshore wind farms to meet its target.
Although there are a number of reasons for the UK’s inability to install an adequate number of offshore wind farms, a critical obstacle in the near future will be the country’s low levels of manufacturing in a period of increasing global supply shortages.
The report highlights that across all major components of the wind supply chain – nacelles, blades, towers, foundations, cables – the UK does not feature in the top three European nations for manufacturing capacity. The UK is not home to any nacelle manufacturing facilities or any major companies specializing in wind towers.
In the past, this has represented a lost economic opportunity. If the UK had exploited its huge market for wind installations to the same extent as other leading European wind manufacturing nations (such as Denmark, Germany and Spain), it would have generated up to an additional £30bn between 2008 and 2022.
Despite current manufacturing output, the UK actually has a unique competitive advantage and is well positioned to increase its specialization in wind manufacturing due to its pre-existing related green industries, the prospective size of its wind installation market and the ecosystem. of innovation distinctive of the sector.
The UK could reduce its energy and import dependence, while reviving its manufacturing industry, producing more wind components at home. To reap the economic benefits of this measure, the IPPR argues that in less than five years the UK can and should build at least one additional blade factory, two new nacelle and tower factories and two additional foundation factories.
A £3.2bn investment in British manufacturing facilities could create tens of thousands of direct and indirect jobs, particularly in small and medium-sized businesses.
According to the report, failure to seize this opportunity would jeopardize net zero, undermine the UK’s energy independence and miss an open economic growth goal.
The report makes a number of policy suggestions, including that the Government solve the current demand problem by ensuring that developers have long-term contracts, with the introduction of non-price criteria in Contracts for Differences (CfD); supporting companies to expand their capacity across the wind industry supply chain through targeted subsidies and joint public-private investments, and modernize infrastructure by renovating ports and warships for the delivery and installation of wind farms large offshore wind turbines.
IPPR Research Associate Simone Gasperin said: “The UK has missed the opportunity to become a world leader not only in wind energy, but also in its manufacturing. “This has cost thousands of jobs and billions to the economy, and is jeopardizing future wind energy deployment goals.”
“However, the UK is in a unique position to become a world leader in the manufacturing of offshore wind farm equipment. The Government should seize this opportunity with both hands and do everything possible to maximize the manufacturing possibilities of its offshore wind energy targets,” he added.
Ajai Ahluwalia, head of supply chain at Renewable UK, added: “This plan shows how we can triple our offshore wind production capacity over the next ten years, creating 10,000 more jobs a year and boosting the UK economy. by a further £25 billion by 2035. The plan identifies high-value areas for the UK to focus on, including the design and manufacture of offshore wind turbine blades and towers, foundations, electrical systems and cables, which will allow us to supply projects here, as well as export around the world to address global supply chain shortages in the coming years”
