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April 3, 2006
The UK’s leading renewable energy body BWEA, together with Renewables East, the renewable energy agency for the East of England, today releases new research which shows that the offshore wind industry is at a critical crossroads. The report; Offshore Wind: At a Crossroads, undertaken over the past four months through extensive interviews with over thirty companies active in the sector, has shown that without additional support for the sector only 2,000 megawatts (MW) of offshore wind capacity will be installed in UK waters by 2015. This is only 25% of what is possible over the next ten years. The major reason cited for the difference between what is possible and what is expected is the gap between the current costs of developing offshore wind and the revenues available to developers through the current Renewables Obligation. The report also examines what level of new offshore capacity could be built if a new policy impetus was put in place by Government. The findings are encouraging. With additional financial support there is a four fold increase in the amount of offshore wind capacity that can be delivered in UK waters. The report identifies that the industry could deliver some 8,000 MW of offshore wind capacity by 2015. This amount of development is equivalent to 6% of UK electricity supply, representing some £10 billion of investment and would prevent the emissions of up to 20 million tonnes of carbon dioxide. BWEA is today, at its Offshore Wind Conference in London, urging the Government to ensure it prioritises offshore wind in the current Energy Review and to put in place the necessary measures to ensure the current economic gap for offshore wind is closed while maintaining the strong progress being achieved onshore. Commenting on the new research, Marcus Rand, Chief Executive BWEA said: "This new research yet again identifies the enormous potential of offshore wind to deliver significant quantities of secure carbon free power over the next decade. Our offshore wind resource is of immense strategic importance to the UK. There is a huge amount of activity in the sector with over 8,000 MW of schemes in development. However, this potential will only be realised if the current economic gap is closed. Government must use the ongoing Energy Review to put in place a new policy impetus for offshore wind. With this in place, offshore wind can join its sister technology onshore wind in the delivery of the bulk of the Government's 20% by 2020 renewable aspirations." James Beal, Managing Director of Renewable East added: “The East of England is at the centre of the majority of offshore wind currently in development. We have already recognised the significant benefit that these developments can bring to the local economy, in building the UK’s second offshore wind farm at Scroby Sands, Great Yarmouth where local companies won orders totalling over £12 million. With the future developments we are looking for up to £2 billion to be captured in this region. For that reason the Suffolk County Council, East of England Development Agency and Europe are investing in a new £6 million business centre in Lowestoft to house and nurture the evolving offshore renewable energy industry. In support of this, Renewables East is directly investing over £500,000 of support into these companies. We are confident that Government will support our aspirations to deliver offshore wind.” The report can be downloaded from www.bwea.com/pdf/OffshoreWindAtCrossroads.pdf The report, Offshore Wind: At a Crossroads was prepared for BWEA and Renewables East by BVG Associates and Douglas-Westwood, and is based on detailed consultation with developers and the supply chain. It provides an assessment of developers' plans to build their projects, and the supply chain's capability to deliver that capacity, under two policy scenarios: no change to current policies, resulting in little delivery and minimal investment in the supply chain, so costs would remain high and few companies would participate in the sector or, on the assumption that policies are put in place that make projects economic, strong growth will result late this decade and into the next, with some constraints from the supply chain limiting delivery slightly. About BWEA: - The British Wind Energy Association (BWEA) is the trade and
professional body for the UK wind and marine renewables industries See www.bwea.com |
Offshore Wind at Crossroads, New Research Shows |