The UK needs to create a supply chain if it wants to reap the economic benefits of the wind energy revolution, says a new report.

Lord Browne of Madingley, former chief exec at BP and president of the Royal Academy of Engineering, says the Government needs to create for wind energy the kind of platform that spurred success in the oil & gas sector.

He said: “The Government supported the oil and gas supply chain in its early days with generous tax incentives, training programmes, strategic infrastructure and supportive regulation.

“The result today is a world leading industry, creating jobs in manufacturing and engineering across the UK. The UK oil and gas supply chain generates £16bn each year, including £5bn in exports, and employs more than 300,000 people in the UK.

“That is a valuable economic legacy, which was accelerated by early government support and which can now be repeated for offshore wind.”

He was following up release of a report, ‘Making green growth real: UK offshore wind supply chain,’ which outlines the conclusions of a meeting of the offshore wind industry convened by the Royal Academy of Engineering and Orbis Energy, the East of England technology, innovation and incubation hub for offshore renewables.

At the roundtable, chaired by Lord Browne, industry representatives discussed ways in which the Government can support the industry in four key areas: infrastructure, skills, investment and health & safety.

According to the report, the UK faces a huge challenge in developing offshore wind over the coming decade. The 13GW scenario set out in the government's National Renewable Energy Action Plan requires a tenfold increase in capacity between now and 2020.

The report says that it is vital that the UK gains the greatest possible value from this expansion through jobs and wealth creation. Crucial to this is establishing a supply chain.

The report calls for the Government to:-
• Develop a UK wide strategy focusing on a select number of ports spread around the coast
• Increase the total pool of skilled workers available to the energy industries
• Ensure that the Health and Safety regime for offshore wind is rational, clear and tailored to the specific risks of offshore wind
• Honour the timetable for Electricity Market Reform
• Provide clarity on how the transition to Feed-in Tariffs will work
• Kick-start investment with targeted financial support during the construction phase, through loan guarantees or similar products delivered by the Green Investment Bank.
The Government should also indicate its intentions for further development rounds. The prospect of sustainable growth in the long-term would provide extra confidence for supply chain companies looking to invest.

Peter Aldous, MP for Waveney, has supported the findings. He said: “We know that offshore wind is a key growth sector for the economy and we are committed to ensuring companies in the UK benefit from this huge opportunity.

“Not only can offshore wind generate significant amounts of electricity, it can support a new generation of engineering skills creating long term jobs which will be key to sustainable growth.”

• The Academy report is available at www.raeng.org.uk/offshorewind