Leading Wind Energy Firm Urges Government for Clearer Offshore Wind Policy
One of the world’s top wind turbine manufacturers insists that the UK government must clearly outline its offshore wind budget strategy to achieve the ambitious goal of quadrupling wind energy output by the end of the decade.
Siemens Energy’s UK head, overseeing more than half of Britain’s offshore wind turbines, urges the government to commit to multi-year support for new wind projects instead of annual contracts.
Currently, developers compete yearly for contracts, securing a guaranteed maximum price for the energy they will generate. This year’s auction budget for such projects stands at a record £800 million.
“If we aim to quadruple offshore wind, we need predictable support to plan necessary domestic enhancements for such growth,” said Darren Davidson, CEO of Siemens Energy UK and Ireland.
Labour aims to quadruple offshore wind capacity, double onshore projects, and triple solar power by 2030.
Siemens Energy’s Hull facility, the UK’s lone offshore wind turbine blade manufacturer, employs approximately 1,300 people. Although the UK ranks second to China in offshore wind capacity, many wind turbine components are produced abroad.
In 2022, GE Vernova, another significant player supplying the world’s largest wind farm at Dogger Bank, scrapped plans for a blade factory in northeast England due to no new orders from the year’s capacity auction.
Davidson, 51, indicates that clearer multi-year government support could mitigate supply chain issues and prompt more UK-based manufacturing facilities.
“Achieving our set megawatt targets in the North Sea sustainably over the long term requires a stable supply chain and reliable resources,” Davidson added.
The Department for Energy and Net Zero stated: “The government aims to position Britain as a clean energy powerhouse, ending the onshore wind ban, backing solar, and supporting diverse clean power initiatives for 2030.
“Our current contracts-for-difference funding exceeds £1 billion, including £800 million for offshore wind projects. We are evaluating applications, and the secretary of state will consider increasing the budget.”
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