Offshore wind needs more innovation funding to match ambition
Richard Crossick, Head of Public Affairs
| Ørsted
To harvest the full economic benefit of the UK’s offshore wind industry, we need to create an ecosystem of innovators here
The growth of renewable energy in the UK over the last two decades has been an incredible success story.
In 2024, renewable energy sources in the UK generated a remarkable 50.8 per cent of the country’s electricity. Notably, wind power was the biggest source of electricity – generating 30 per cent of the UK’s electricity in 2024 – overtaking gas for the first time.
As the world’s leading offshore wind developer, Ørsted has helped contribute to the UK’s success. Our 12 operational offshore wind farms generate over 7 per cent of the UK’s electricity, boosting the UK’s energy security and independence – whilst cutting carbon emissions.
However, for the offshore wind industry to truly deliver government’s wider expected industrial strategy and energy policy ambitions for jobs and economic benefit, funding for business-led research and development (R&D) and innovation is a vital piece of the puzzle that cannot be forgotten.
Lack of funding for offshore wind innovation
Innovate UK, the UK’s innovation agency, is an incredible accelerant for the UK economy. By providing funding and support for business-led innovation, it helps companies – and industries – grow, commercialise and scale.
Yet, the offshore wind industry has not historically benefitted from that support as much as other net-zero focussed sectors.
Wind has received approximately 4.5 per cent of funding awarded to Clean Growth & Infrastructure projects (where the predominant majority of wind funding is housed in Innovate UK’s classification) from Innovate UK over the last 10 years, according to an Ørsted analysis of the agency’s funding.
To put that into context:
- solar-related business-led innovation received 5.1 per cent of Clean Growth & Infrastructure funding
- grid received 8.8 per cent
- hydrogen received 12.1 per cent.
That level of funding for wind innovation does not match the government or the industry’s ambitions for growth in a sector that is the backbone of the UK’s renewable energy transition.
Innovation needs to support ambitious growth
In 2024, the Offshore Wind Industrial Growth Plan set out an ambitious vision for a global offshore wind industry led by UK expertise that could help grow our economy, increase energy security and achieve net-zero.
The Industrial Growth Plan calls for the UK to become a global technology leader in:
- advanced turbine technology
- industrialised foundations and substructures
- future electrical systems and cables
- smart environmental services
- next generation installation and operations and maintenance.
To become a leader in any of those areas requires UK innovation – and large amounts of funding for offshore wind technologies that are looking to move from proven concept to fully commercialised production.
Let’s unlock even more economic benefit
In order to harvest the full economic benefit of having a fleet of offshore wind farms in UK waters, we need to create an ecosystem of innovators here.
We need to bring innovative new products into our supply chains and enable our suppliers to be more competitive so that that they can bring new products to market both at home and abroad. That way we can grow our supply chain capacity, create jobs, expand the economy, deliver greater energy independence and reduce greenhouse gas emissions.
It’s well proven that public investment in innovation and R&D stimulates further private investment.
Ultimately, we need to see the offshore wind industry recognised in the UK’s innovation funding priorities at a level commensurate with the industry’s importance to the government’s industrial strategy and energy policy.
To find out more about innovation visit orsted.co.uk/insights/expert-take
