Energy Minister Graham Stuart has reaffirmed his commitment to collaborate closely with the offshore sector in order to generate more employment opportunities and investment in the UK.
Speaking at the Global Offshore Wind 2023 conference organized by RenewableUK in London, Stuart acknowledged the need for ambitious reforms in the auction market to address cost challenges.
The announcement follows Orsted’s disclosure of the significant increase in the delivery of its upcoming project, Hornsea Three.
The company had previously achieved a record-low price before the escalation of inflation due to the Russian invasion of Ukraine.
Additionally, a newly released report estimates that the number of jobs in the sector will surpass 100,000 by 2030.
Mr. Stuart, who represents Beverley and Holderness – the East Yorkshire constituency off where the project that is set to join the world’s largest wind farms already operational there will emerge, said: “While our flagship Contracts for Difference scheme has been immensely successful to date and much repeated around the world, we aren’t resting on our laurels.
“We know that prices can go up as well as down, and I’m very aware that we’re in a hugely competitive and challenging economic context. We want to ensure we have resilient and innovative supply chains.
“That’s why we’re looking at ambitious reforms to the CfD to ensure that it continues to provide sustainable prices for future projects so that developers have the confidence to invest in infrastructure for the long term.
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“I welcome the work to produce an Industrial Growth Plan that builds on the UK’s strengths and advantages across the lifecycle to capture the value of combined Government and industry effort.
“We’re working closely with industry to develop a globally competitive offshore wind supply chain for the long term.”
Regarding the report on job growth, Stuart noted the significance of the 100,000 jobs milestone by 2030.
He emphasized the potential economic opportunities that offshore wind can bring to areas where the government aims to promote economic leveling up.
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By creating jobs in diverse regions, the industry can contribute to a more equitable distribution of economic opportunities throughout the country.
The current offshore wind workforce in the UK has already surpassed 32,000, representing a 4% increase compared to the end of 2021.
This figure includes over 17,000 direct jobs and nearly 15,000 indirect jobs.
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To support the ongoing construction of several offshore wind farms, rapid job growth is required in the short-to-medium term.
The forecast predicts a need for 88,509 jobs by 2026, which is an increase of over 56,000 compared to the current workforce.
RenewableUK’s chief executive, Dan McGrail, also emphasized the importance of reforming the CfD scheme to maximize economic benefits in next year’s clean power auctions.
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In his opening speech at the same conference session, RenewableUK’s chief executive Dan McGrail highlighted the importance of reforming Contracts for Difference to ensure that next year’s clean power auctions bring even wider economic benefits.
McGrail said: “In spite of an oft-repeated narrative that the UK has missed out on supply chain opportunities, we are seeing some world-class innovation happening which is positioning the UK as a global leader in many fields.
“The nine biggest market segments against which the UK has its strongest positioning have a combined addressable GVA potential in the hundreds of billions to 2040.
“This is the real value we can create and capture in the UK and are already doing so, and we are working with Minister Stuart and his team to see how we can do more of this and raise our ambition further.
“Getting CfD design right, from next year’s auction onwards, is absolutely crucial to allow offshore wind to continue to drive the energy transition in the UK – and this value must flow around our industry to boost the health of our supply chains and sustain and grow the jobs and skills upon which our sector depends.”
