Manufacturers and suppliers across the North East are perfectly positioned to drive the next generation of offshore wind, a key voice in the sector has said.
Following the Government's awarding of five offshore wind projects with Contracts for Difference, Tony Quinn of the Energi Coast, the North East's offshore wind cluster, said the latest projects should spur supply chain activity.
Mr Quinn said: “The announcement of Allocation Round 4 signifies another important step forward in terms of offshore wind’s contribution to the UK energy mix and is key to the sector’s target of producing 50GW by 2030.
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“This announcement should be a catalyst for increased capacity creating long-term value and greater collaboration between developers, tier one contractors and the creation of a more sustainable supply chain, utilising skills and technologies that will make the industry more efficient, safer and productive.
“The track record of North East England’s cluster of innovation-driven supply chain companies in the industry puts this region in the perfect position to be a major contributor to the next generation of offshore wind.
“The investments taking place here in infrastructure, talent and technology will ensure that future AR4 developments can maximise on the capabilities of our cluster.”
The five offshore wind projects awarded Contracts for Difference totalling almost 7GW and are due to be operational between 2026 and 2027. It is part of a wider allocation to 93 renewable energy projects - including tidal stream and floating offshore wind - representing 11GW.
Contracts for Difference give operators financial support by paying the difference between the "strike price" – a price for electricity reflecting the cost of investing in a particular low carbon technology – and the "reference price" – a measure of the average market price for electricity.
Joanne Leng , chief executive of NOF, the UK’s business development organisation for the energy sector, said: “AR4 (Allocation Round 4) presents the opportunity to ensure that UK content is at the heart of these future developments. If UK companies have the capabilities and expertise plus are competitive to deliver offshore wind projects to budget and timescales, then there is no reason why the work cannot stay in this country, supporting national and regional economies alongside achieving our net zero ambitions.
“The UK supply chain must also focus its attentions on floating offshore wind which also has an allocation in AR4, this will undoubtedly present significant opportunities for UK. The supply chain has worked tirelessly over many years to carve out a great reputation in the fixed-bottom offshore wind market, let’s make sure the UK leads the way in floating offshore wind going forward.
“This is an important milestone in the story of UK offshore wind, but the work continues at pace to ensure that British industry can make a valid and significant contribution to the sector and maintain our world leading position.”
Business and Energy Secretary Kwasi Kwarteng said: "Eye-watering gas prices are hitting consumers across Europe. The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills.
"Thanks to today’s record renewable energy auction, we have secured almost 11GW of clean, home-grown electricity – which would provide as much power as around six gas fired power stations.
"These energy projects already have planning permission, now they have a funding contract in place. We’re going to these projects built as soon as possible to better protect millions of British families from rising costs."
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