The UK can – and must – lead the global expansion of offshore wind
Benj Sykes, Head of Ørsted UK
| Ørsted
Offshore wind’s supply chain must expand to three to four times its current size to meet global demand. Benj Sykes, Head of Ørsted UK, explains how the UK can lead the way.
The UK’s offshore wind success story over the last decade is undisputed and something we should be proud of and celebrate.
Wind was the number one source of electricity generation in the UK for the first year ever in 2024 – overtaking gas.
Wind power made up 30 per cent of the country’s electricity generation mix, according to data released in early January by the National Energy System Operator (NESO), the government’s independent system planner and operator for the energy transition.
We’ve come a long way since 2014 when wind and solar accounted for about 10 per cent of Great Britain’s electricity.
Now the Government’s ambition to make Great Britain a clean energy superpower includes the aim that 95 per cent of the country’s energy come from low-carbon sources by 2030.
To achieve this, offshore wind will need to generate over half of the nation’s electricity, supporting around 100,000 jobs, according to NESO’s ‘Clean Power 2030’ report.
To get there, billions of pounds have already been mobilised and invested in the UK economy, £15bn of which has come from Ørsted alone.
In addition, in 2024 we committed a further £8bn to construct Hornsea 3, which with a generating capacity of 2.9 gigawatts (GW) will power more than 3m UK homes.
The offshore wind industry has collectively developed a sector that already supports 30,000 jobs. But with the Government raising ambitions for offshore wind to new levels, and with other countries increasing their own ambitions, the global supply chain must expand to three to four times its current size to meet demand.
The UK supply chain needs to be given the best chance to access these opportunities – in the UK, across Europe, and in global markets. To achieve this, we must do three things.
Firstly, we must support our existing supply chain in the UK. We sometimes forget that the UK already has a substantial supply chain. Companies like Siemens Energy in Hull and JDR Cables in Blyth, both of which are expanding, demonstrate the UK’s domestic manufacturing capabilities.
Building on the existing supply chain should be the starting point for our industrial policy. For example, Ørsted has placed major contracts with over 230 UK suppliers in the last few years, and it is important that these companies are nurtured and supported, not least to access the fast growing export market.
Secondly, we will have to secure investment in new or upgraded manufacturing facilities. To do this we have to create the right business environment to support companies that want to invest in the UK.
As an example, the South Korean company, SeAH, recently invested over £900m in a new offshore wind foundation manufacturing facility in Teesside. We need to encourage more of these kinds of investments.
Thirdly, the long-term objective for the UK industry must be to compete and win global contracts in the global offshore wind market – exporting UK success abroad.
For example, 55 of Ørsted’s UK suppliers have also gone on to support our global projects. If we can replicate this and more UK companies can compete internationally in the next decade, that will be a key measure of the success of the UK offshore wind industry.
Energy policy can go some way to supporting the UK supply chain – the new Clean Industry Bonus, which encourages investment in more sustainable supply chains, and other changes to the Contract for Difference auctions may help support UK companies.
However, this will not be enough without the Government’s new Industrial Strategy working in parallel with energy policy levers. This means providing more support for critical infrastructure, research and development, skills programmes, and enabling companies to invest in and expand facilities in the UK.
With the right Industrial Policy, the UK can reach its 2030 clean power ambition – and reap the rewards during the next golden decade of offshore wind’s global expansion.
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