The energy landscape is changing rapidly as the UK gears up to meet its Clean Power 2030 targets. A significant contribution is set to be made by offshore wind where a target has been set to treble the UK’s current installed capacity of 15GW to around 40-50GW by 2030.
Some key challenges and opportunities for the UK were outlined at our recent “Unlocking the Energy Transition: The role of offshore wind in clean power 2030” event.
The upcoming Auction Round 7 (“AR7”) and Auction Round 8 (“AR8”) to award new Contracts for Difference (CfD) will be make-or-break to meeting the target. The panel was in agreement on the record levels of deployment needed and the sector is hoping for a “bumper auction” that sets the pace.
Whilst most of the changes in policy have been welcomed by the industry, there are important next steps:
“It’s not just a question of awarding the contracts, as important as that is. It’s also about having the supply chain and skills in place, while the consents need to be ready, the grid needs to be ready – all of the flow-through needs to be there.” Jane Cooper, Deputy CEO of trade association Renewable UK.
KPMG supported RenewableUK in developing the Offshore Wind Industrial Growth Plan (IGP) – a blueprint for accelerating delivery while building UK supply chain strength. The IGP sets out targeted interventions across five key areas: cables, foundations, turbines, data, and operations & maintenance. It’s now vital that the government backs this with long-term industrial strategy and funding, so the UK can capture more economic value as deployment scales.
“We’re in global competition here. The government has a critical role to play, with long-term policy clarity being a guiding light to attract investment and supply chain capacity. Uncertainty, on the other hand, creates complexity which adds to the cost of capital and, potentially, the cost to consumers.” Simon Virley, Head of Energy and Natural Resources, KPMG in the UK.
Collaboration across industry and government is essential to reduce delays and uncertainty. One important area where this can come into play is the discharge of consents, especially around environmental issues.
Conditions imposed around environmental obligations can be time- and effort-intensive when they are dealt with on a project-by-project basis (such as the building of kittiwake towers for nesting or fish hotels that protect small fish). There is some welcome government support here such as the Marine Recovery Fund, but full implementation is needed and other schemes in addition.
More work needs to be done to promote collaboration in the industry in order to develop a “library of options” that can be drawn on. Otherwise, dealing with conditions on a case-by-case basis slows projects down and creates uncertainty.
Research from RenewableUK estimated that 100,000 people would be needed by 2030. Some progress has been made – there are already approaching 30,000 people employed in offshore wind and the figure is higher if one includes other tiers of the value chain – but the skills demand remains pressing, including many hard-to-recruit roles like electrical engineers.
Modular training, graduate recruitment, apprenticeship schemes, transition pathways from other industries, and visa flexibility must all be part of the solution.
More immediately, it is vital that the AR7 and AR8 auctions take place on time this year and next, and that contracts are awarded.
“Quite simply, we need business to happen. The final hurdle is the winning of a CfD – that allows developers to take projects forward and actually build.” Danielle Lane, Director of Offshore Development, RWE.
A large part of getting “business to happen” is long-term policy clarity and certainty for investors. Massive changes in the market or policy could otherwise, all panellists agreed, risk the delivery of Clean Power targets.
“It’s been a speedy ride recently. But all the pieces are there. We need to gather ourselves, get some contracts awarded, and then move forward as an industry to get this done.” Jane Cooper, Deputy CEO of trade association Renewable UK.
While the UK forges ahead, global progress is uneven. Offshore wind in the US has stalled, Europe is mixed, and Asia – especially China – is accelerating. That global shift matters - as markets falter elsewhere, the UK can lead – but only if we move with purpose, unlock collaboration, and stay focused on delivery.
It was a fascinating and illuminating discussion which made the magnitude of the task clear – but also provided encouragement that, with industry collaboration and the right policy framework in place, offshore wind can rise to the challenge.
Watch the full discussion below:
