Expanding the UK’s onshore wind supply chain could add £56bn to the economy, according to a new report by RenewableUK.
Projections indicate that the UK’s current operating fleet of onshore wind turbines could potentially triple by 2050 from 16GW now to over 50GW. With a strong pipeline of onshore wind projects due to come online, the report from the UK trade body finds that if the domestic supply chain expands in line with these projections, onshore wind could contribute an additional £56bn to the UK economy, taking its total value to £154bn.
It’s not just new wind farms – much of the additional onshore wind generating capacity will come from ‘repowering’ the UK’s older onshore wind farms. This will mean replacing older turbines with newer and more powerful models.
Expanding the supply chain to provide high-value replacement parts for refurbishing these wind turbines is identified by the report as the easiest win for UK-based companies. It also finds that the greatest opportunities lie in increasing the manufacture of key components, including turbine blades, towers and steelwork, nacelles, drivetrains and electrical equipment such as cables and high-voltage substations.
James Robottom, head of onshore wind delivery at RenewableUK, said: “Onshore wind is an engine for significant economic growth in the UK. We already have supply chain companies across the country delivering high levels of spend in the UK from our onshore wind farms, but more can be done to grow this sector and create thousands of new jobs by investing in new factories to manufacture more components for projects here and abroad.”
The report makes three key recommendations for the onshore wind industry and government:
Industry should work with the government to make the case for investing in new UK manufacturing facilities by highlighting synergies with other parts of the energy sector such as offshore wind.Ensure the UK’s industrial base is cost-competitive at home and abroad by reducing the cost of electricity for manufacturers and cutting taxes and tariffs for specific onshore wind components.Focus on refurbishing and repowering onshore turbines as these areas offer major opportunities to grow the supply chain.
Robottom said: “As this report shows, industry can play its part by focusing specifically on the highest value components and services, while government also has a key role in reducing taxes and tariffs, as well as taking effective measures to bring down the cost of electricity for industrial users which are long overdue.”
Matthieu Hue, CEO at EDF Power Solutions UK and Ireland and Onshore Wind Industry Council co-chair, said: “Projections [indicate] that our current operating fleet across the UK could potentially triple by 2050. To be realised, we must provide stable policy support, a transparent project pipeline, a skilled workforce, and strong access to import and export markets. Together, we can solidify the UK’s position as a clean energy superpower, leading the way towards a secure and prosperous future.”