Offshore wind one year after the election

Richard Crossick, Head of Public Affairs | Ørsted

4 min read01 July Partner content

In its manifesto, Labour pledged to make Britain a clean energy superpower. Despite ongoing challenges in the offshore wind sector, Richard Crossick, Head of Public Affairs at Ørsted UK, believes if we maintain focus on the policy reforms in process, the industry can deliver the secure energy supply and economic benefits the UK urgently needs

A year since Labour was elected and a few weeks before the start of the process to auction new Contracts for Difference (CfDs) for offshore wind and other renewables, now seems to be an excellent time for a stocktake on the offshore wind sector.

Where is policy succeeding? Where is there more work to do? Since Ørsted will have no large-scale offshore wind projects in the upcoming Allocation Round 7 (AR7), we have the luxury of having a slightly more removed view than normal.

There is a paradox in the offshore wind industry at the current time – the long-term direction of travel couldn’t be more positive, and yet the short-term challenges and anxiety are greater than ever. This is partially due to challenges in the supply chain and the industry as a whole, and partially because we are in the middle of reforming policies and processes but have yet to reap the benefits.

Let’s be clear, we have seen some phenomenal changes in recent months. We are seeing first-hand the advantage of the Clean Power 2030 target and the mission-led approach, including closer alignment between the Department for Energy Security and Net Zero and the Department for Environment Food and Rural Affairs.

The reforms to the grid connection process and the proposed changes on planning are huge steps in the right direction – however it will be several years before we feel their full benefits.

Ørsted is only too aware of the challenges in the global industry. But as the sector develops into a mature industry, we will experience fluctuations in price and changes in availability of the supply chain, just like other infrastructure sectors in the UK and globally. The industry must ride through these cycles. It does not feel comfortable or easy when you are in the middle of the storm, but we are confident that the industry will grow stronger as a result of facing these challenges.

There is a paradox in the offshore wind industry at the current time
– the long-term direction of travel couldn’t be more positive, and yet
the short-term challenges and anxiety are greater than ever

With AR7 round the corner, it is no surprise that the industry is (rightly) focussed on ensuring that we deliver a bumper round to make up for the disappointments of recent years. With the 2030 target guiding ambition, we need to see progress this year.

However, it is equally important to continue to focus on preparing the projects we will need in the 2030s by leasing new seabed in the coming years. Again, the industry can see the progress made by The Crown Estate, but given the timelines, we have yet to see the outcomes.

On skills, the industry is maturing our approach as we grow. For example, Ørsted has joined with other developers in the Humber to work with local colleges to design curricula for courses providing key skills needed across the industry.

Ørsted is proud to have created the first Wind Turbine Technician apprenticeship programme in the country, but in the medium-term we hope to move to a cross-industry approach to creating apprenticeship programmes.

Finally, the details of the Industrial Strategy were not known at the time of writing. However, the £300m the government has already committed to boost the UK offshore wind supply chain is a great start.

If the UK wants to build on our existing supply chain in Hull, Teesside, East Anglia and across the UK, and increase the number working in the industry from 30,000 to 100,000, we must be at least as attractive a place to invest in as other European options.

If companies choose to locate in other countries across the North Sea, even if those countries don’t have as strong a pipeline as the UK, it is because those countries are offering government guarantees, upgraded ports and infrastructure, and skills development. With the right support, the UK can match this offer.

In short, if we maintain focus on the reforms in process, the industry will be on course to deliver the secure energy and economic impact the UK needs.