A new report, The Economic Value of Offshore Wind: Benefits to the UK of Supporting the Industry, published by the Offshore Renewable Energy (ORE) Catapult highlights the huge economic benefits of a strong UK offshore wind industry, which could be worth as much as GBP 2.9 billion to the UK economy by 2030.
The key findings from the report are:
- Supporting UK offshore wind is cost-benefit neutral with a strike price of GBP 105 and 30% UK content. But industry is already doing better than this, and each additional 10% of UK content is worth a net GBP 500 million – GBP 600 million (depending on strike price), and each GBP 10 strike price reduction is worth GBP 240 million – GBP 350m (depending on the level of UK content).
- The Gross Value Added (GVA) to the UK per GW installed, given current UK content (input) is 32%, is GBP 1.8 billion and is estimated to increase to GBP 2.9 billion by 2030 – if a projection of 65% UK content can be achieved
- If the next UK auction round achieved a strike price of GBP 90 and 50% UK content, this would represent an estimated GBP 1.7 billion per GW net benefit for the winning bid.
- Continued public support for, and investment in, the UK offshore wind industry will create a virtuous circle of cost reduction and economic growth.
