The benefits

of clarity
The UK needs offshore wind and the industry has
shown it can deliver.
Continued momentum is important to build investor certainty,
maximise the economic opportunities for the UK and
accelerate efforts on cost reduction. A trajectory through
to 2025 for offshore wind will provide the UK with the best
opportunity for cost effective decarbonisation.
As recommended by the Committee on Climate Change and others, a clear
intent to see a build rate of 1 2GW (delivering at least 18GW by 2025) would
have the following effects:*

Create further UK jobs by giving the long term confidence to recruit,

train and develop local staff.

Bring down the cost of offshore wind energy faster to a level of

80 - 90/ MWh by 2025 by encouraging further investment in
cost saving technology.

Offshore
Wind Vision

Create a continuous pipeline of projects that would stimulate

competition between developers and suppliers, and build a strong
and competitive market for project finance, further reducing the cost
of energy.

Enhance the leadership role for the UK in this field and create
export opportunities for UK based companies.
For more information, visit:

* Committee on Climate Change, Meeting Carbon Budgets Progress in reducing UK emissions: 2015 Report to Parliament

Annual and cumulative installed UK offshore wind capacity (MW)

Annual and cumulative installed UK offshore wind capacity (MW)

Annual and cumulative installed UK offshore wind capacity (MW)

5000

5000
4000
5000
4000
3000

Three
key messages
Offshore wind is on track to be cost competitive with
other new forms of power generation by the mid 2020s.
By 2030 offshore wind could supply 35% of UK electricity
demand, providing over 50,000 skilled jobs.

4000
3000
2000
3000
2000
1000

The sector is already delivering

and can do so much more

2000
01000
1000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

ANNUAL INSTALLED
2000 2001 2002 2003 2004 2005 2006 2007 2008
2009 CAPACITY
2010 2011
2000 2001 2002 2003 2004 2005 2006 2007 2008
2009 CAPACITY
2010 2011
ANNUAL INSTALLED

ANNUAL INSTALLED CAPACITY

3 million homes.

By 2030 we can easily build 30GW capacity, enough to meet

35% of UK electricity demand.

2) Reducing costs through investment in new technology

and increased competition
There has been a 38% reduction in government subsidy.
Offshore wind is on track to be cost competitive with
other new power sources by the mid 2020s.

lOW

HIGH

ANNUAL OPERATING AVERAGES

35
Global Investment in UK Offshore Wind (bns)

The sector has already delivered 9.5bn of large infrastructure projects,

with plans to deliver another 20bn by 2020 and 30bn by 2025.
The sector has created 13,000 UK jobs, with particular growth
in the Northern Powerhouse, driving regeneration of UK manufacturing
and creating skilled jobs for the 25 year lifetime of wind farms.
The UK content of offshore wind farms is now about 40% and well on
track to achieve the industry ambition of 50% by 2020.

2012 2013
CUMULATIVE
INSTALLED 2014
CAPACITY

CUMULATIVE INSTALLED CAPACITY

50

9.5bn

2015

2020

2015

2020

2015

2020

50

Offshore wind snapshot

Now

13,000

2015

2020

Date of Final Investment Decision

Offshore wind (repowered) snapshot

CCGT band

FOR 2020
INDUSTRY TARGET
FOR 2020

under a high growth scenario

Direct Employment in Offshore Wind (000s)

Offshore Structures Britain

(EEW/Bladt) Transition Pieces
New facility in Teesside making
transition pieces for UK projects

350 new jobs

PLANNING/DEVELOPMENT

02013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
(Source:
DECC (March, 2015). Delivering UK Energy Investment: Low Carbon Energy)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

5A

6A

5B

6B

2025

2030

At this point, the average cost of energy from offshore wind is competitive
with CCGT, even with the lowest gas price forecast

2010

PROJECTS
MOST RECENT
PROJECTS

under a high
growth scenario

3
4

PROJECTS
201214
PROJECTS

Direct Employment in Offshore Wind (000s)

DECOMMISSIONING
20
Since
2010, the sector has attracted
9.5
billion of
25
SUPPORT AND
OTHER
SPECIALISED TRANSPORT
25
SUPPORT
AND
OTHER
DECOMMISSIONING
investment.
Encouraged by our reputation
for operating
1520
OPERATION/MAINTENANCE
DECOMMISSIONING
SPECIALISED TRANSPORT
20
10
stable
and
predictable
regulatory
regimes
for
renewable
CONSTRUCTION/INSTALLATION
15
SPECIALISED
TRANSPORT
OPERATION/MAINTENANCE
DESIGN/MANUFACTURE
15
energy,
global investors will provide
another 16 21
510
OPERATION/MAINTENANCE
CONSTRUCTION/INSTALLATION
PLANNING/DEVELOPMENT
billion
by 2020 to help bring the total
installed offshore
CONSTRUCTION/INSTALLATION
DESIGN/MANUFACTURE
0105
DESIGN/MANUFACTURE
PLANNING/DEVELOPMENT
wind
capacity
to2018over
10GW.
52013
2014
2015 2016 2017
2019 2020
2021 2022 2023
0

Source: BVG Associates

100

PROJECTS
201011
PROJECTS

A pipeline of projects is attracting investment in UK manufacturing facilities,

helping to boost UK content. New UK turbine manufacturing facilities are being
built by MHI Vestas and Siemens. Offshore Structures Britain opened a new
facility in Teesside earlier this year to make transition pieces for UK wind farms.

Siemens - WTG
Siemens and ABP new
manufacturing facility Hull

150

Offshore wind is getting more productive

Offshore wind has one of the highest load factors of all
renewable technologies, and in the future will continue
to improve.
The
newest
offshore wind
farms are already
201011
201214
MOST RECENT
INDUSTRY TARGET
90
80
PROJECTS
PROJECTS
PROJECTS
FOR
2020
operating
at load
factors
of up to 50%.
80
201011
201214
MOST RECENT
INDUSTRY TARGET

Direct
Employment
in Offshore Wind
(000s)investment
25
The
sector
is attracting
global

Offshore Wind Will Be Competitive With

New Gas Power
200

Specialised ports are being developed in coastal towns around

the country to build and then service the wind farms for their
full 25-year lifetime.

130
Levelised
Cost of Energy ( per MWh, 2011 prices)
140
120
140
130
110
130
120
100
120
110
90
110
100
80
100
90

under a high
growth scenario
SUPPORT AND OTHER

30
Global
Investment in UK Offshore Wind (bns)
35
1621bn
25
30.5bn
3530
20
1621bn
25
30.5bn
30
15
1621bn
2520
30.5bn
10
15
20
5
9.5bn
1510
0
105
9.5bn

2005

CUMULATIVE
2012 INSTALLED
2013 CAPACITY
2014

140
Levelised Cost of Energy ( per MWh, 2011 prices)

50
40
50
40
30
40
30
20
30
20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
20 2004 2005 2006 2007 2008LOW 2009 2010
HIGH
2011 ANNUAL
2012OPERATING
2013AVERAGES
2014
2011
2012
2013
2014
2004 2005 2006 2007 2008lOW 2009 2010
HIGH
ANNUAL OPERATING AVERAGES

Growing the
UK supply chain

2014

UK Offshore Wind Load Factors (%)

UK Offshore Wind Load Factors (%)

50

3) Helping economic recovery

2013

Levelised Cost of Energy ( per MWh, 2011 prices)

Cost of energy (/MWh)

We are consistently delivering our projects on schedule

and to budget.
In the last five years weve built 3.7GW capacity enough to power

2012

UK Offshore Wind Load Factors (%)

Global Investment in UK Offshore Wind (bns)

1) Delivering much needed energy infrastructure quickly

2011

Offshore wind is getting cheaper

Offshore wind band

2030

50,000

1,000 new jobs

Offshore wind subsidies have fallen by 38%* and the

technology is on track to be cost competitive with other
new generation in the mid 2020s, even once system
costs are taken into account.
(Source: BVG, July 2015, Delivering more for less)

Creating skilled jobs around the country

Offshore wind already provides employment to 13,000
people across the UK. With continued deployment, this
figure will grow as industry invests in skills and training.
By 2030 there could be up to 50,000 people working
directly in the offshore wind industry in the development,
manufacture and operation of offshore wind farms in the
UK and overseas.
(Source: RUK 2013, Working for a greener Britain. High growth scenario of 27GW
creates 23,465 direct and 21,188 indirect jobs (FTE))

*This is comparing 2ROCs at 45 a ROC for 20 years to a CfD for 15 years at a strike price of 120/MWh, assuming wholesale price of 45/MWh.

A survey of existing UK offshore

wind farms shows that UK
content levels were at 43% by
2014. The sector is on track to
reach the target of at least 50%
UK content by 2020. *

Sembmarine SLP Lowestoft

Substation construction

The sector is also starting to

export. The UKTI estimates
that there were 90m
worth of exports from local
offshore wind companies
in 2014/15, up from 1m in
2013/14.

200 new jobs

MHI Vestas Facility WTG blades

Facility on the Isle of Wight

By 2030 the sector will be

building wind farms with more
than half UK content, creating
employment across the UK,
with centres of excellence
developing in regions of
higher deployment.

220 new jobs

* Source: BVG Associates, May 2014, Methodology for measuring the UK content of UK offshore wind farms: additional analysis