THE OFFSHORE WIND SECTOR DEAL
In March 2019 the UK Government and the Offshore Wind Industry Council signed a world-leading Sector Deal. It is an ambitious, long-term strategy, in which offshore wind will become the backbone of the UK’s power system.
The UK has installed over 8GW of offshore wind - more than any other country - building the largest wind farms in the world, with the most powerful turbines. Offshore wind powers the equivalent of over 7 million homes each year and investment in new offshore wind capacity is the fourth largest infrastructure programme in the UK. The cost of new offshore wind has fallen by 66% since 2015 and it is now one of the lowest cost options for new power in the UK.
A Clean, Modern & Affordable Power System
The Sector Deal will ensure that the UK can significantly increase its share of affordable renewable generation while cutting carbon emissions. The Offshore Wind Sector Deal raises our ambition with a target of at least 30GW operational by 2030 providing over 30% of UK electricity. Innovation, collaboration with other sectors and supportive government policy have enabled us to halve the cost of new projects in the space of two and a half years. and the next projects will see further cost reductions, helping consumers.
A credible and achievable pathway to at least 30GW by 2030 provides a level of certainty unmatched by any other country and means the UK will remain the anchor market for the global offshore wind industry.
By 2030, over 30%
of UK power will come from offshore wind
Thanks to the certainty and stability that the Sector Deal provides, the industry will deliver £48 billion of investment in UK infrastructure between now and the end of the next decade, by which time the offshore wind industry will employ 27,000 people. Many of these jobs are highly skilled, and will be in coastal communities, where economic regeneration is needed.
The Sector Deal will secure further investment in our fast-growing supply chain, which already extends to every part of the country. UK companies lead the world in key services such as designing, building and operating offshore wind farms, as well as manufacturing blades, turbine towers and cables. The industry is setting a target to increase the UK content of UK offshore wind farms to 60% by 2030, as part of the Sector Deal.
£48bn investment
supporting 27,000 jobs
The UK’s global lead in offshore wind means we are uniquely placed to sell our innovative products and services not only to projects here but also overseas. Exports are expected to be worth £2.6bn a year by 2030 – a fivefold increase from today. Overall, the domestic and export market for offshore wind products and services provided by UK-based firms is expected to be worth nearly £5bn a year by the end of the next decade. Other countries are looking at the UK’s success and are seeking to learn from us.
The Sector Deal builds on our nation’s success, notably by the industry investing up to £250m to develop the UK supply chain, working with local enterprise partnerships, councils and development agencies, increasing productivity and fostering innovation. This includes an investment of up to £100m in a new industry programme, the Offshore Wind Growth Partnership, which will help UK companies seeking to grow their business in the rapidly-growing global offshore wind market. The OWGP will be delivered by the Offshore Renewable Energy Catapult.
In just one year, we've made great progress towards our commitments in the Sector Deal. You can read about these in the annual progress report.