Taking a stance on renewable energy subsidies
TIGHTENING OF OFFSHORE WIND SUPPLY CHAIN REGIME WELCOMED BY ENERGY PARK DEVELOPER
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.”