A report highlights that the UK is lagging in wind manufacturing, facing a challenging future with low manufacturing levels and increasing global supply shortages
The UK is being urged to triple the rate of offshore wind farm installations and bolster manufacturing to meet demand, according to a report.
A study by think tank IPPR indicates that at the current installation pace, the UK will fall short of its 2030 offshore wind capacity targets by 18 years, missing potential revenue and job opportunities in the booming renewables sector. The Government has set a goal for the UK to achieve up to 50 gigawatts (GW) of installed offshore wind capacity by 2030, while Labour’s plans are even more ambitious, aiming for 55GW, as part of efforts to decarbonise the energy grid.
However, the IPPR report highlights that the UK is lagging in wind manufacturing, facing a challenging future with low manufacturing levels and increasing global supply shortages. Despite being a leader in offshore wind installation second only to China the UK does not rank among the top three European nations for manufacturing any major component of the wind supply chain such as blades, towers or cables, the report warns.
The report suggests that if the UK had capitalised on its large wind installation market in manufacturing as much as other leading nations like Denmark, it could have generated an additional £30billion between 2008 and 2022. In less than half a decade, the UK has the potential and should aim to construct at least one additional turbine blade factory, two nacelle the component housing the generator and tower factories, and two more foundation factories, according to the Institute for Public Policy Research (IPPR).
The IPPR is calling for an investment of £3.2billion in UK manufacturing facilities, which it believes could create tens of thousands of direct and indirect jobs. However, failing to seize the opportunity to enhance offshore wind manufacturing could jeopardise the UK’s energy independence, hinder efforts to reduce emissions to net zero by 2050, and overlook economic opportunities.
The report urges support for businesses to broaden the manufacturing supply chain, ensure developers have long-term contracts to secure demand, and upgrade infrastructure by refurbishing ports and naval vessels to deliver offshore wind farms.
Simone Gasperin, associate fellow at IPPR, commented: ”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.””.
Ajai Ahluwalia, the head of supply chain at industry body Renewable UK, has said: “The IPPR’s report highlights the extraordinary opportunity that the UK has to land hundreds of millions of pounds of new investment in offshore wind manufacturing.”
He added: “It is timely as it coincides with a newly-released offshore wind industrial growth plan, created by RenewableUK, the Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland. This shows how to triple our offshore wind manufacturing capacity over the next ten years, supporting an additional 10,000 jobs a year and boosting the UK’s economy by a further £25 billion between now and 2035.”
“The plan identifies the high-value areas which the UK should focus on, including the design and manufacture of offshore wind blades and turbine towers, foundations, electrical systems and cables, enabling us to supply projects here as well as exporting worldwide to address global supply chain shortages in the years ahead,” he concluded.
