What does the Clean Growth Strategy mean for UK wind?

Following the announcement of the UK government's Clean Growth Strategy, A Word About Wind analyses the impact on the UK wind industry.

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A Word About Wind
October 17, 2017
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This content is from our archive. Some formatting or links may be broken.
What does the Clean Growth Strategy mean for UK wind?

Following the publication of the UK’s Clean Growth Strategy last week, UK wind industry professionals may well be wondering what these new policies mean for their businesses.

While companies should be bolstered by what is essentially a major pat on the back from the UK Government, especially for offshore wind, those in the industry will need to continue to rely on their entrepreneurial skills to fill the gaps left by the strategy. The fight for backing for onshore wind – or even acknowledgement of the sector’s good points – is not yet over.

Momentum continues for offshore wind

First, the exciting news. The UK Government announced support of £557m for renewables projects including offshore wind farms, and a target of over 10GW of new offshore capacity in the 2020s. This gives offshore companies more certainty to keep investing in their business with confidence that there will be future projects – although exact dates were not included.

Screen Shot 2017-10-19 at 16.03.28-1.png

This strategy continues the momentum of last month’s Contracts for Difference auction, which was an important moment in showing that offshore wind can be built cheaply, and comes as an additional boost to the industry’s visibility. A Word About Wind has provided analysis of the impact of the auction for businesses, which members can access here. The auction results have been hailed by commentators as the start of a new era for UK energy: the Guardian described the strategy as a long-awaited acknowledgement that a low-carbon and a prosperous economy are one and the same.

The inclusion of a sector deal for offshore wind indicates, in the words of Matthew Wright, UK managing director for Ørsted (formerly Dong Energy), that wind can be “the backbone of the UK’s energy system”. This positivity is heartening for those working in the supply chain.

Delivers on Conservatives’ election manifesto

The strategy is also encouraging for firms developing onshore wind farms on remote islands in Scotland, as they can enter these projects to receive support in the next CfD auction, due in spring 2019. This is a positive step, both for reducing costs to consumers and potentially boosting the economies of island communities – not to mention the jobs they support.

But it was not all good for onshore wind. The lack of support for onshore wind continues an antipathy towards the sector since the Conservatives took power in 2015, after five years in coalition with the Liberal Democrats. This is unsurprising given that the party appears unwilling to cause controversy in Conservative-voting rural communities.

As Gordon Edge of Inflection Point Energy writes, the support in the Clean Growth Strategy is a small first step in gaining government backing for the sector: “This is the beginning, not the end, of many policy processes, and there will be many consultations and decisions that can get bogged down in trench warfare as incumbents defend their interests.”

This lack of support for UK onshore wind is another disappointment for those working in the sector. We may yet see a change of heart from government, as it is tough to see how the UK will meet its fourth and fifth carbon budgets without more investment in onshore wind. For businesses, it means carrying on as they were. The strategy hasn’t changed much.

In conclusion

The support for offshore wind, where the UK is a world leader, must be good for businesses.

However, the government’s reluctance to embrace onshore wind, or even acknowledge its many benefits, shows that professionals will have to keep arguing the case for the sector. The government needs to realise that the debate about ‘subsidies’ should not be too much of a hindrance: as strike prices for wind farms, both offshore and onshore, move closer to market power prices then the need for financial support falls.

Public finances are stretched and new energy projects are needed. In that context, onshore wind businesses deserve as much recognition as their offshore cousins.

Want to discuss UK wind with your industry peers? Find out about our events by signing up to our mailing list below.

Following the publication of the UK’s Clean Growth Strategy last week, UK wind industry professionals may well be wondering what these new policies mean for their businesses.

While companies should be bolstered by what is essentially a major pat on the back from the UK Government, especially for offshore wind, those in the industry will need to continue to rely on their entrepreneurial skills to fill the gaps left by the strategy. The fight for backing for onshore wind – or even acknowledgement of the sector’s good points – is not yet over.

Momentum continues for offshore wind

First, the exciting news. The UK Government announced support of £557m for renewables projects including offshore wind farms, and a target of over 10GW of new offshore capacity in the 2020s. This gives offshore companies more certainty to keep investing in their business with confidence that there will be future projects – although exact dates were not included.

Screen Shot 2017-10-19 at 16.03.28-1.png

This strategy continues the momentum of last month’s Contracts for Difference auction, which was an important moment in showing that offshore wind can be built cheaply, and comes as an additional boost to the industry’s visibility. A Word About Wind has provided analysis of the impact of the auction for businesses, which members can access here. The auction results have been hailed by commentators as the start of a new era for UK energy: the Guardian described the strategy as a long-awaited acknowledgement that a low-carbon and a prosperous economy are one and the same.

The inclusion of a sector deal for offshore wind indicates, in the words of Matthew Wright, UK managing director for Ørsted (formerly Dong Energy), that wind can be “the backbone of the UK’s energy system”. This positivity is heartening for those working in the supply chain.

Delivers on Conservatives’ election manifesto

The strategy is also encouraging for firms developing onshore wind farms on remote islands in Scotland, as they can enter these projects to receive support in the next CfD auction, due in spring 2019. This is a positive step, both for reducing costs to consumers and potentially boosting the economies of island communities – not to mention the jobs they support.

But it was not all good for onshore wind. The lack of support for onshore wind continues an antipathy towards the sector since the Conservatives took power in 2015, after five years in coalition with the Liberal Democrats. This is unsurprising given that the party appears unwilling to cause controversy in Conservative-voting rural communities.

As Gordon Edge of Inflection Point Energy writes, the support in the Clean Growth Strategy is a small first step in gaining government backing for the sector: “This is the beginning, not the end, of many policy processes, and there will be many consultations and decisions that can get bogged down in trench warfare as incumbents defend their interests.”

This lack of support for UK onshore wind is another disappointment for those working in the sector. We may yet see a change of heart from government, as it is tough to see how the UK will meet its fourth and fifth carbon budgets without more investment in onshore wind. For businesses, it means carrying on as they were. The strategy hasn’t changed much.

In conclusion

The support for offshore wind, where the UK is a world leader, must be good for businesses.

However, the government’s reluctance to embrace onshore wind, or even acknowledge its many benefits, shows that professionals will have to keep arguing the case for the sector. The government needs to realise that the debate about ‘subsidies’ should not be too much of a hindrance: as strike prices for wind farms, both offshore and onshore, move closer to market power prices then the need for financial support falls.

Public finances are stretched and new energy projects are needed. In that context, onshore wind businesses deserve as much recognition as their offshore cousins.

Want to discuss UK wind with your industry peers? Find out about our events by signing up to our mailing list below.

Following the publication of the UK’s Clean Growth Strategy last week, UK wind industry professionals may well be wondering what these new policies mean for their businesses.

While companies should be bolstered by what is essentially a major pat on the back from the UK Government, especially for offshore wind, those in the industry will need to continue to rely on their entrepreneurial skills to fill the gaps left by the strategy. The fight for backing for onshore wind – or even acknowledgement of the sector’s good points – is not yet over.

Momentum continues for offshore wind

First, the exciting news. The UK Government announced support of £557m for renewables projects including offshore wind farms, and a target of over 10GW of new offshore capacity in the 2020s. This gives offshore companies more certainty to keep investing in their business with confidence that there will be future projects – although exact dates were not included.

Screen Shot 2017-10-19 at 16.03.28-1.png

This strategy continues the momentum of last month’s Contracts for Difference auction, which was an important moment in showing that offshore wind can be built cheaply, and comes as an additional boost to the industry’s visibility. A Word About Wind has provided analysis of the impact of the auction for businesses, which members can access here. The auction results have been hailed by commentators as the start of a new era for UK energy: the Guardian described the strategy as a long-awaited acknowledgement that a low-carbon and a prosperous economy are one and the same.

The inclusion of a sector deal for offshore wind indicates, in the words of Matthew Wright, UK managing director for Ørsted (formerly Dong Energy), that wind can be “the backbone of the UK’s energy system”. This positivity is heartening for those working in the supply chain.

Delivers on Conservatives’ election manifesto

The strategy is also encouraging for firms developing onshore wind farms on remote islands in Scotland, as they can enter these projects to receive support in the next CfD auction, due in spring 2019. This is a positive step, both for reducing costs to consumers and potentially boosting the economies of island communities – not to mention the jobs they support.

But it was not all good for onshore wind. The lack of support for onshore wind continues an antipathy towards the sector since the Conservatives took power in 2015, after five years in coalition with the Liberal Democrats. This is unsurprising given that the party appears unwilling to cause controversy in Conservative-voting rural communities.

As Gordon Edge of Inflection Point Energy writes, the support in the Clean Growth Strategy is a small first step in gaining government backing for the sector: “This is the beginning, not the end, of many policy processes, and there will be many consultations and decisions that can get bogged down in trench warfare as incumbents defend their interests.”

This lack of support for UK onshore wind is another disappointment for those working in the sector. We may yet see a change of heart from government, as it is tough to see how the UK will meet its fourth and fifth carbon budgets without more investment in onshore wind. For businesses, it means carrying on as they were. The strategy hasn’t changed much.

In conclusion

The support for offshore wind, where the UK is a world leader, must be good for businesses.

However, the government’s reluctance to embrace onshore wind, or even acknowledge its many benefits, shows that professionals will have to keep arguing the case for the sector. The government needs to realise that the debate about ‘subsidies’ should not be too much of a hindrance: as strike prices for wind farms, both offshore and onshore, move closer to market power prices then the need for financial support falls.

Public finances are stretched and new energy projects are needed. In that context, onshore wind businesses deserve as much recognition as their offshore cousins.

Want to discuss UK wind with your industry peers? Find out about our events by signing up to our mailing list below.

Following the publication of the UK’s Clean Growth Strategy last week, UK wind industry professionals may well be wondering what these new policies mean for their businesses.

While companies should be bolstered by what is essentially a major pat on the back from the UK Government, especially for offshore wind, those in the industry will need to continue to rely on their entrepreneurial skills to fill the gaps left by the strategy. The fight for backing for onshore wind – or even acknowledgement of the sector’s good points – is not yet over.

Momentum continues for offshore wind

First, the exciting news. The UK Government announced support of £557m for renewables projects including offshore wind farms, and a target of over 10GW of new offshore capacity in the 2020s. This gives offshore companies more certainty to keep investing in their business with confidence that there will be future projects – although exact dates were not included.

Screen Shot 2017-10-19 at 16.03.28-1.png

This strategy continues the momentum of last month’s Contracts for Difference auction, which was an important moment in showing that offshore wind can be built cheaply, and comes as an additional boost to the industry’s visibility. A Word About Wind has provided analysis of the impact of the auction for businesses, which members can access here. The auction results have been hailed by commentators as the start of a new era for UK energy: the Guardian described the strategy as a long-awaited acknowledgement that a low-carbon and a prosperous economy are one and the same.

The inclusion of a sector deal for offshore wind indicates, in the words of Matthew Wright, UK managing director for Ørsted (formerly Dong Energy), that wind can be “the backbone of the UK’s energy system”. This positivity is heartening for those working in the supply chain.

Delivers on Conservatives’ election manifesto

The strategy is also encouraging for firms developing onshore wind farms on remote islands in Scotland, as they can enter these projects to receive support in the next CfD auction, due in spring 2019. This is a positive step, both for reducing costs to consumers and potentially boosting the economies of island communities – not to mention the jobs they support.

But it was not all good for onshore wind. The lack of support for onshore wind continues an antipathy towards the sector since the Conservatives took power in 2015, after five years in coalition with the Liberal Democrats. This is unsurprising given that the party appears unwilling to cause controversy in Conservative-voting rural communities.

As Gordon Edge of Inflection Point Energy writes, the support in the Clean Growth Strategy is a small first step in gaining government backing for the sector: “This is the beginning, not the end, of many policy processes, and there will be many consultations and decisions that can get bogged down in trench warfare as incumbents defend their interests.”

This lack of support for UK onshore wind is another disappointment for those working in the sector. We may yet see a change of heart from government, as it is tough to see how the UK will meet its fourth and fifth carbon budgets without more investment in onshore wind. For businesses, it means carrying on as they were. The strategy hasn’t changed much.

In conclusion

The support for offshore wind, where the UK is a world leader, must be good for businesses.

However, the government’s reluctance to embrace onshore wind, or even acknowledge its many benefits, shows that professionals will have to keep arguing the case for the sector. The government needs to realise that the debate about ‘subsidies’ should not be too much of a hindrance: as strike prices for wind farms, both offshore and onshore, move closer to market power prices then the need for financial support falls.

Public finances are stretched and new energy projects are needed. In that context, onshore wind businesses deserve as much recognition as their offshore cousins.

Want to discuss UK wind with your industry peers? Find out about our events by signing up to our mailing list below.

Following the publication of the UK’s Clean Growth Strategy last week, UK wind industry professionals may well be wondering what these new policies mean for their businesses.

While companies should be bolstered by what is essentially a major pat on the back from the UK Government, especially for offshore wind, those in the industry will need to continue to rely on their entrepreneurial skills to fill the gaps left by the strategy. The fight for backing for onshore wind – or even acknowledgement of the sector’s good points – is not yet over.

Momentum continues for offshore wind

First, the exciting news. The UK Government announced support of £557m for renewables projects including offshore wind farms, and a target of over 10GW of new offshore capacity in the 2020s. This gives offshore companies more certainty to keep investing in their business with confidence that there will be future projects – although exact dates were not included.

Screen Shot 2017-10-19 at 16.03.28-1.png

This strategy continues the momentum of last month’s Contracts for Difference auction, which was an important moment in showing that offshore wind can be built cheaply, and comes as an additional boost to the industry’s visibility. A Word About Wind has provided analysis of the impact of the auction for businesses, which members can access here. The auction results have been hailed by commentators as the start of a new era for UK energy: the Guardian described the strategy as a long-awaited acknowledgement that a low-carbon and a prosperous economy are one and the same.

The inclusion of a sector deal for offshore wind indicates, in the words of Matthew Wright, UK managing director for Ørsted (formerly Dong Energy), that wind can be “the backbone of the UK’s energy system”. This positivity is heartening for those working in the supply chain.

Delivers on Conservatives’ election manifesto

The strategy is also encouraging for firms developing onshore wind farms on remote islands in Scotland, as they can enter these projects to receive support in the next CfD auction, due in spring 2019. This is a positive step, both for reducing costs to consumers and potentially boosting the economies of island communities – not to mention the jobs they support.

But it was not all good for onshore wind. The lack of support for onshore wind continues an antipathy towards the sector since the Conservatives took power in 2015, after five years in coalition with the Liberal Democrats. This is unsurprising given that the party appears unwilling to cause controversy in Conservative-voting rural communities.

As Gordon Edge of Inflection Point Energy writes, the support in the Clean Growth Strategy is a small first step in gaining government backing for the sector: “This is the beginning, not the end, of many policy processes, and there will be many consultations and decisions that can get bogged down in trench warfare as incumbents defend their interests.”

This lack of support for UK onshore wind is another disappointment for those working in the sector. We may yet see a change of heart from government, as it is tough to see how the UK will meet its fourth and fifth carbon budgets without more investment in onshore wind. For businesses, it means carrying on as they were. The strategy hasn’t changed much.

In conclusion

The support for offshore wind, where the UK is a world leader, must be good for businesses.

However, the government’s reluctance to embrace onshore wind, or even acknowledge its many benefits, shows that professionals will have to keep arguing the case for the sector. The government needs to realise that the debate about ‘subsidies’ should not be too much of a hindrance: as strike prices for wind farms, both offshore and onshore, move closer to market power prices then the need for financial support falls.

Public finances are stretched and new energy projects are needed. In that context, onshore wind businesses deserve as much recognition as their offshore cousins.

Want to discuss UK wind with your industry peers? Find out about our events by signing up to our mailing list below.

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