Benefits of Floating Offshore Wind to Wales and the South West
There is significant opportunity for floating offshore wind in UK waters, including the Celtic Sea covering waters around Wales and the South West of England. However, the pilot floating offshore wind projects deployed in Scotland to date have had limited contribution from the UK supply chain, with major fabrication and installation works being undertaken in Spain and Norway.
This report investigates how the industries surrounding the Celtic Sea can maximise local content. Under the UK’s Industrial Strategy and Clean Growth Strategy, there is an increasing need to demonstrate that public funding of energy generation is giving value to UK taxpayers and energy consumers. Currently the UK supply chain for fixed bottom offshore wind is achieving 48% of the lifetime value of projects. The Sector Deal, between the government and the sector, agreed in March 2019 sets a target of achieving 60% UK content by 2030, including an emphasis on increasing the UK share of capital expenditure (“capex”) beyond 29%. This kind of supply chain development, which the region is seeking to encourage, will be critical to the sector delivering on its commitments.