Page 0010

ENERGYOFFSHORE WIND

10

success and how this will be measured. The

Supply Chain group, for example, points to

better communication across the entire supply chain, cost reduction

at project level,

better links between the supply chain and

developers, and fewer accidents.

The UK's overall strategy is based on the

premise that increased UK supply chain

capacity will help reduce costs to consumers through

greater competition. The

Government is determined that this

increased UK content will result in reduced

prices - the target is to bring these down to

£100/MWh by 2020 in line with the Offshore

Wind Cost Reduction Task Force which

reported back in 2012 and which guided

many of the recommendations in the Strategy.

The sector is also guided by the importance

of the renewable sector to Britain's longterm

economic plan. It was Government Minister

Greg Barker from the DECC who called it the

"renewables revolution" when addressing a

group of major international investors at an

event hosted by the Royal Bank of Canada in

London's Savoy Hotel in May 2014.

The energy sector, he said, is at the heart of

the long-term plan - and he noted that in

little over a year, seven new listed investment companies had mobilised £1.4 billion

of new money entering the renewables

landscape.

While the EU had seen renewables investment drop

back 50% since 2011 the UK

was dramatically different growing by 20%

to a total of £8 billion in 2013.

With the passing of the Energy Act in

December 2013 with its radical new

Electricity Market Reform (including CfDs)

and the certainty that gives developers, he

forecast that investments will follow to

ensure the supply chain is "developed here

in the UK and not overseas."

www.gov.uk/government/uploads/system/uploads/attachment_dagrowoffshorewind@mymas.orgbis-13-1092-offshore-wind-industrialstrategy.pdf

www.growoffshorewind.com

Register your interest via the website or

call 0207 728 2738 or email:

growoffshorewind@mymas.org

continued from page 9

The challenge of ensuring that there is

maximum opportunity to develop a

healthy wind and marine renewables

manufacturing supply chain, especially

in the lower tiers, is a key focus of

RenewableUK's Supply Chain Strategy

Group.

Formed in early 2012 on the back of multiple announcements from

Original

Equipment Manufacturers of their intentions to

invest in new facilities in the UK,

the group's membership, which includes

key turbine, blade, tower, drive train and

generator manufacturers, is able to offer

valuable insight into the task of ensuring

the manufacturing inputs to existing and

future facilities maximise the benefit to the

UK economy.

A key initial function of the group in 2012

was to guide and shape the design and

development of the GROW: Offshore

Wind manufacturing programme which

was launched in June 2013 (see page 9).

The group has held regular meetings with

the GROW team including a workshop

where regional GROW advisors introduced

companies they have been engaging with to

gain insight into the likelihood of follow-up

leads with other lower tier suppliers.

Policy uncertainty during implementation of

the Energy Bill later in 2012 and during 2013,

led to increased supply chain uncertainty

about earlier announced investments of turbine manufacturers,

and some did not take

forward plans to invest in dedicated manufacturing facilities.

The group was crucially consulted to support

RenewableUK's response to the

Government's consultation on the establishment of an Offshore

Wind Industrial

Strategy and supported RenewableUK's

Building an Industry report (see link

below), both of which outline actions to

secure the UK's support industrial base

in face of competition for investment from

continental Europe.

The confirmation of strike prices in early

2014 and the subsequent awarding of

FID-enabling contracts has led to

increased optimism on the likelihood of

investment in manufacturing facilities, evidenced by Siemens £160m investment at

Green Port Hull, and the group is now

assessing the detailed requirements for

key lower tier components of the offshore

wind supply chain, and is supporting

development of supply chains in the

marine and onshore wind sectors.

www.renewableuk.com/en/publications/index.cfm/bai2013

STRATEGY GROUP FOCUS IS ON LOWER TIERS

Photo courtesy Siemens - the company is on

RenewableUK's Supply Chain Strategy Group.

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