Offshore Wind: First Renewable Technology to Agree to Sector Deal

This is the first Sector Deal for a renewable energy technology. It puts offshore wind at the centre of the nation’s clean, affordable and reliable energy system, almost quadrupling our capacity from 7.9 gigawatts now to at least 30GW by 2030, generating one-third of our  electricity.

The UK is already the world leader in offshore wind, with more capacity than any other country, the biggest offshore wind farms and the most powerful turbines. The supply chain extends to every part of the country, and UK companies are already exporting our offshore wind products and services to more than 20 countries. With the Sector Deal now in place, those exports are set to increase fivefold in value to £2.6 billion a year by 2030.   

The Sector Deal builds on our nation’s success, notably by the industry investing up to £250m to develop the UK supply chain, 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, as well as a new initiative to develop skills for the sector.

The Energy and Clean Growth Minister Claire Perry said “This new Sector Deal will drive a surge in the clean, green offshore wind revolution that is powering homes and businesses across the UK, bringing investment into coastal communities and ensuring we maintain our position as global leaders in this growing sector. By 2030 a third of our electricity will come from offshore wind, generating thousands of high-quality jobs across the UK, a strong UK supply chain and a fivefold increase in exports. This is our modern Industrial Strategy in action.” 

The Co-Chair of the Offshore Wind Industry Council and Ørsted UK Country Manager for Offshore, Benj Sykes, said: “Now that we’ve sealed this landmark deal with our partners in government, as a key part of the UK’s Industrial Strategy, offshore wind is set to take its place at the heart of our low-carbon, affordable and reliable electricity system of the future.

“This relentlessly innovative sector is revitalising parts of the country with transformational,  sustainable opportunities, especially coastal communities, from Wick in the north of Scotland to the Isle of Wight, and from Barrow-in-Furness to the Humber. Companies are burgeoning in clusters, creating new centres of excellence in this clean growth boom. The Sector Deal will ensure that even more of these companies win work not only in the UK, but around the world in a global offshore wind market set to be worth £30bn a year by 2030”.

The Chief Executive of RenewableUK. Hugh McNeal, said: “The Sector Deal is about creating opportunities for the people who will be part of our 27,000-strong offshore wind workforce. We’re setting up a new body to develop the right skills for years to come, not only by offering apprenticeships, but also by helping experienced people from other parts of the energy sector, as well as the military, to make the change into offshore wind. We also want to ensure far more diversity in the industry, by reaching a target of at least  33% women employees by 2030, and by recruiting people from a wider variety of ethnic backgrounds”.

“This Deal will also ensure that the UK maintains its leading role as an offshore wind  innovation hub, accelerating our world-class R&D in fields like robotics and AI, and cutting-edge technologies being put through their paces at our globally-renowned test facilities”.     

• Policy paper: Offshore wind: Sector Deal