Insights

Offshore wind has been one of the greatest technology success stories for the UK. The country has been able to establish global leadership by utilising it. The biggest offshore wind farm in the world is being built on the Yorkshire Coast. The Dogger Bank wind farm is bigger than Greater London, and when complete it’s going to produce enough clean energy to power well over 6 million homes. The UK should have great pride in the role that they have played in the adoption of solar wind.

The Three Advantages of Offshore Wind

There are three distinctive advantages to using offshore wind farms.

• Strengthens National Security
• Makes the UK Less Reliant on Importing Energy
• It’s Carbon-Free and Cheaper than Other Alternatives

It’s not all about energy though. It’s also about industrial strategy. At the end of the day, this is a technology that is required globally. The UK has been a strong leader in the quest for greener energy, so offshore wind can easily be seen as an inward investment. From job creation to new manufacturing facilities and even export opportunities, it’s safe to say that offshore wind is a game-changer.

Maintaining Momentum

It’s no surprise that other countries are fighting to keep up. Even though the UK has made a solid start and managed to break down a lot of barriers regarding offshore wind farming, one important factor to keep in account would be momentum. A recent auction has failed to bring forward any offshore wind projects, seemingly putting it on the back burner.

A lot of this comes down to interest and inflation. The cost of building huge infrastructure projects, such as offshore wind farms, have drastically increased. This wasn’t reflected in developer prices. That’s one of the reasons why the auction failed to generate the additional capacity the country needs to make good on energy security goals and targets.

While there is a limited relaxation regarding the rules for offshore wind farms, we need all the energy we can get. Homegrown energy is invaluable right now. Onshore can’t match offshore, in any way, in terms of both scale and impact. The UK is densely populated with limited land. With that in mind, the abundance of coastline is giving offshore wind advocates all the ammunition they need to make a solid case.

The UK Is at a Crossroads

Decisions will be made over the coming weeks, and they will decide whether or not we can recover the leadership status we once had. It’s make or break, and the next few years could decide if the UK ends up reaping the benefits of offshore wind farming, or whether it becomes another dead investment. If we throw everything we have into offshore wind farming, the benefits could be revolutionary.

Looking into the Future of Offshore Wind Farming

First of all, the prices that are being set by the government have to be sustainable. It’s also imperative to recognise the rising costs experienced by supply chains, and that this has impacted every household in the UK. The Administrative Strike Price is currently set around £60/MWh. In contrast, Ireland’s subscribed auction cleared at £74/MWh.

Sure, offshore wind farming will provide the country with some insurance regarding recent price spikes. Of course, you also get more security as climate action comes as part of the package. This makes It easier to justify creating new opportunities, as well as expanding the UK’s role in new green jobs. There are some other related reforms that aren’t connected to money. Extending contract lengths from 15 to 20 years, as the US have done, and extending capital allowance will help to cushion against increasing costs.

The UK Could be the Easiest Place in the World to Invest

The potential here could be great. By ensuring that the UK is the biggest and best place to invest, we could push an industrial renaissance. Green jobs aren’t a slogan. It’s a reality. When you look at the Dogger Bank wind farm, you’ll see that it supports 2,000 jobs. Upcoming projects include Berwick Bank, to the east of Scotland. This has the potential to create 9,000 jobs. Better national security, jobs, growth and investment are all benefits of pushing wind farms in the UK.

That being said, the UK has to be agile enough to seize the moment. If we don’t, it goes without saying that other countries will. The UK has been able to establish a competitive advantage with zero competition. Now, other countries are putting us in a global race.
To reference, Aesop’s fable, complacency hindered the hare, allowing the tortoise to win. It’s a solid lesson that very much applies to this situation.

The UK needs to pick up the pace, not slow down.