The Offshore Renewable Energy (ORE) Catapult has released its second annual Offshore Wind Supply Chain Confidence Survey, indicating that confidence within the offshore wind sector remains robust despite facing challenges in the past year.
Conducted in October and November 2023, the survey shows that companies in the sector remain optimistic about growth in revenue and employment over the short, medium, and long term. However, overall confidence has slightly declined, reflecting the impact of tough market conditions.
The UK government’s recent announcement of a significant increase in the administrative strike price for the next Contracts for Difference (CfD) Allocation Round 6 (AR6) has been well received by the industry. This move is seen as crucial in addressing cost pressures and encouraging offshore wind projects.
ORE Catapult’s Chief Executive, Andrew Jamieson, highlighted the ambitious national deployment targets and a substantial project pipeline as factors supporting confidence in the continued growth of the UK’s offshore wind industry. He stated, “That is fantastic news and will ensure that we maintain the UK’s standing as a frontrunner in global offshore wind.”
RenewableUK’s Chief Executive, Dan McGrail, emphasized the industry’s collaboration with the government to maximize job creation and attract private investment. McGrail stated, “The industry estimates that the offshore wind supply chain could boost the UK’s economy by £92 billion by 2040, and the confidence demonstrated in the survey demonstrates we’re on the right track.”
The survey, which included 123 companies from various regions of the UK, identified potential barriers to growth such as skills shortages and the visibility of future project pipelines. Companies expressed challenges in recruiting a skilled technical workforce, with a focus on mechanical and electrical engineering qualifications. Despite these challenges, the report indicated increasing optimism about future employment growth in the offshore wind sector.
The survey report recommends addressing barriers through initiatives like a national portal for procurement opportunities, increased investment in programs facilitating the transition into offshore wind, and a substantial increase in the industry target for apprenticeships.
The study suggests that the UK supply chain has a unique opportunity to contribute to the growing global offshore wind market, with increased visibility of global market projections and export support from the UK government being key factors in overcoming industry concerns.
