Alexander Stafford is MP for Rother Valley.
In every conversation around the clean recovery there is, rightfully, a tendency of NGOs and commentators to look at how we can take the steps needed to achieve our net zero ambition. Job-rich initiatives such as energy efficiency and EV charging development are particularly alluring. The development of green hydrogen is promoted as strongly for its regional growth benefits as much as its importance for decarbonising heat.
The potential role of renewables in the green recovery is celebrated, but often overlooked. But it is these that are already driving jobs in the North of England and would help with this Government’s “levelling-up agenda”, as well as being the most publicly popular.
The Government has an ambitious target of 40GW of offshore wind by 2030, which will bring over £50 billion of investment into the UK over the next decade. The industry is already transforming ports across the country such as Grimsby, Great Yarmouth and Tyneside, employing thousands in high-wage high-value jobs and supporting our levelling up ambitions.
What’s more, as the cheapest large-scale new power source, the offshore wind that the UK will be building in the coming years, and indeed the onshore wind and solar, will be helping the British economy stay competitive.
Our competitive market framework of Contract of Difference auctions has ensured consumers get the lowest cost renewables, whilst supporting the development of a world-leading supply chain. New companies like Tekmar in Sedgefield have emerged as world-leaders in cables. Traditional oil and gas companies such as James Fisher, headquartered in Barrow-in-Furness, have found new contracts servicing offshore wind farms. However, we could be doing much more to support the development of the UK’s supply chain.
The Prime Minister is looking for infrastructure investment which will unlock future regional growth. The next generation of offshore wind turbines will be almost as tall as the Shard, so it is essential that we re-develop our ports so that they’re able to handle these incredible machines and their component parts.
Similarly, our manifesto rightly saw the opportunity of floating offshore wind, and the Government is looking at the CfD reform needed to develop it. We are well placed to become world leaders, with an established wind industry supply chain, expertise, and great wind resources. There’s the potential to power millions of homes by developing floating offshore wind in the Celtic Sea and deep in the North Sea, but we need to invest in ports like Milford Haven and Nigg to do so – vitally, to maximise the development of the UK supply chain in the process.
We know proactive industrial strategy works in renewables. It was a mixture of market opportunity and Government support that unlocked £310 milliom of private investment in the Siemens Gamesa blade factory in Hull, which now employs over a thousand people, 96 per cent of whom live within a 30 mile radius of the factory.
We need to reignite bilateral conversations with major supply chain companies, and set up a policy environment that better supports the vast number of UK SMEs. Test facilities like the ORE Catapult in Blyth are fantastic in allowing UK innovators to trial new products on wind turbines but, once they’re proven, we will need to ensure the grants, tax relief or financial de-risking schemes are in place which help these innovators to scale-up their businesses.
Increasing our research and development funding to the levels of competitor countries like Germany, Denmark, the Netherlands and Japan will ultimately ensure UK’s companies are at the forefront of innovation and remain competitive in the global market.
When the global market in offshore wind is set to increase to at least £30 billion a year by 2030, we should be increasing our export ambitions and the support that government gives companies in entering these global markets.
Just as Denmark has an ecosystem of multiple agencies working to boost renewable exports, we too should work across Government. We’re rightly levering our role as COP President and world leadership in offshore wind to encourage countries such as Brazil, Mexico and India to take advantage of their vast wind and seabed resources too. We do so for the future of the world’s climate. But we should also acknowledge that, in doing so, we’re developing markets for our supply chain companies, and departments should act accordingly.
Finally, and most importantly, the Government shouldn’t lose sight of the importance of also ensuring that people are re-skilled so they can take advantage of the jobs we create through the nurture of our renewables sector. We need to manage the transition.