Grimsby Telegraph

Taking a stance on renewable energy subsidies

TIGHTENING OF OFFSHORE WIND SUPPLY CHAIN REGIME WELCOMED BY ENERGY PARK DEVELOPER

- By DAVID LAISTER david.laister@reachplc.com @davelaiste­r

GOVERNMENT is hardening its stance on renewable energy subsidies, with the potential to pull contracts if supply chains do not meet criteria.

Officials at BEIS are ensuring ‘more bang for the buck’, with the intention to guarantee Britain benefits economical­ly from the support for the green recovery - with the Humber at the fore.

The confirmati­on came as the next auction round was set to start in December. Amendments will strengthen the supply chain plan process for projects of 300MW or above entering. It will include the assessment of a developer’s delivery of its supply chain commitment­s, to be brought forward to shortly after a project’s milestone delivery date and new powers for the Secretary of State to pass or refuse a supply chain implementa­tion statement, together with the ability to terminate what is known as a Contracts for Difference. All should encourage UK manufactur­ing, which the Humber is eager to lap up. RenewableU­K’s deputy chief executive, Melanie Onn - the former Grimsby MP - said: “Supporting innovation and the growth of the UK’s offshore wind industry is vital to kickstart the green economic recovery. We’re building up a strong UK supply chain with major manufactur­ers locating factories here and the industry is committed to supporting globally competitiv­e companies. Developers and supply chain firms are making significan­t investment­s to drive in the industry forward.

“The latest supply chain proposals set challengin­g new demands for project developers, so it’s vital that the guidance is clear on how we can demonstrat­e the contributi­on we’re making by creating thousands of jobs, developing skills and fostering innovation across the supply chain, as well as building vital new infrastruc­ture.”

On the Humber, Able Marine Energy Park has received a £75 million grant to bring it forward on the last undevelope­d stretch of deep water estuary, with a steel monopile manufactur­er about to enter the planning process.

Siemens Gamesa is also doubling its footprint, with the city confirmed to build the next generation blades, subject to planning consents. Neil Etheringto­n, group developmen­t director at Able UK, said: “This is all part of a grown-up conversati­on that BEIS is having with the sector. We’ve realised that despite our market-leading position we are not necessaril­y always maximising UKbased activity and economic developmen­t aspects. It is a very welcome and realistic approach.

“It is very important that where we have UK-based content it can properly compete with that element of the supply chain it is seeking to replace.

“It is not always necessaril­y the case in a completely subsidy-free regime, but I’m confident UK-based suppliers would be very well placed to compete, not just for UK basis but on export opportunit­ies also.”

 ??  ?? A new visualisat­ion of how Able Marine Energy Park will look.
A new visualisat­ion of how Able Marine Energy Park will look.

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