With discussions spanning consenting, finance and coverage throughout the offshore wind house, listed here are our key takeaways from this week’s main convention in Glasgow.
It was a whirlwind two days in Glasgow this week for Scottish Renewables annual Offshore Wind Convention.
With every day aligned with one of many two pillars of provide chain and coverage, sector leaders continued to color a brilliant image and wholesome pipeline within the wake of the ScotWind and INTOG leasing rounds.
But challenges additionally persist round consenting, the supply of port infrastructure and the demand for well timed grid connections.
Listed below are a few of our high takeaways.
All eyes on AR6 price range
The trade seems to be recovering after the catastrophe of the final Contract for Distinction spherical and has warmly welcomed a reset of strike costs for AR6. However a lot dialogue on the occasion turned to the amount of tasks and the price range obtainable for the devoted offshore wind pot.
SSE Renewables’ director of bids for UK and Eire Mark Timmons made clear a bullish request for “over 10GW” of offshore wind within the pot because of the backlog from 2023’s unsuccessful AR5, and to make room for the wave of tasks prone to be consented within the coming 12 months.
Sarah Redwood of the Division for Power Safety and Internet-Zero acknowledged that managing the AR6 public sale was her “high precedence” forward of an announcement in March, and that she hoped to get the pot “as excessive as doable whereas guaranteeing it’s a contest”.
Notably, she additionally famous that the price range set in March is predicated on the tasks eligible to bid now – however this might be elevated if extra tasks are consented.
Authorities to set price range for ‘catch-up’ AR6 CfD public sale in March
In December DESNZ’s Helena Charlton stated the division aimed to depart its ultimate price range choice as late because it might to permit as many tasks to safe consents and connections in time to use.
Port problem nonetheless essential
In the meantime, there was continued demand for help and certainty across the UK’s port infrastructure wants.
First Minister Humza Yousaf set the scene on day one, hinting at an upcoming funding as a part of the Scottish Authorities’s Strategic Funding Mannequin (SIM).
In the meantime, Ms Redwood spoke of an imminent replace on the UK authorities’s Floating Offshore Wind Manufacturing Funding Scheme (FLOWMIS), which once more would assist mobilise capital into the sector.
Hywind upkeep a ‘misplaced alternative’ for UK provide chain
The perils of failing to mobilise this funding was additionally referenced throughout a panel on Thursday. Information that Equinor’s Hywind generators could be towed again to Norway for upkeep reasonably than to the UK was decried as a “misplaced alternative” for the native provide chain – and one which trade leaders say can’t proceed.
Group profit
Representatives from the Scottish Authorities burdened to builders the significance of demonstrating tangible neighborhood advantages from any proposed offshore wind tasks.
Scottish Authorities deputy director for offshore wind consenting and marine planning help Mike Palmer informed convention delegates demonstrating social licence for a mission is “essential” for profitable consent purposes.
“It’s at all times an awesome concern to Scottish Ministers to have the ability to see an illustration of advantages to communities which can be coming from these offshore wind developments, and you’ll count on that from a politician,” Mr Palmer stated.
“They are going to be searching for that in any utility that comes by means of for derogation. It’s clearly going to be an enormous issue, the diploma of social licence that you simply’ve received.
“I can’t emphasise sufficient the significance of participating the communities… It’s so essential in your utility to have the ability to reveal that you simply’ve received the varied pursuits which can be being affected onside.”
Many rural communities in Scotland, notably these within the Highlands, stay unconvinced they’re getting a good deal from renewable vitality developments https://www.energyvoice.com/renewables-energy-transition/wind/uk-wind/546450/five-things-we-learned-from-offshore-wind-conference-2024/, with some questioning the “tokenistic” approaches of builders.
Ocean Winds’ UK nation supervisor Adam Morrison advised the sector may be coming to the purpose of “exhausting” the standard neighborhood profit and funds mannequin. As an alternative, when all is alleged and accomplished, the trade is prone to be judged on its lasting legacy of making jobs, abilities and vitality safety, he ventured.
Rural communities specifically have to see the advantages of the brand new community of technology and infrastructure that’s deliberate.
Whereas neighborhood profit funds are nicely established for onshore wind farms, some delegates identified the problem in defining a definite neighborhood for offshore wind builders.
SSEN Transmission director of consumers and stakeholders Christianna Logan floated the thought of wind builders contributing to each native and regional funds within the areas they function, with tasks pooling neighborhood fund sources collectively to “speed up the advantages”.
‘No transition with out transmission’
The significance of transmission infrastructure was extensively mentioned within the wake of the Winser Assessment, with the sector determined to beat boundaries to grid connection.
Nationwide Grid estimates the UK must construct 5 instances extra transmission strains by 2030 than have been constructed up to now 30 years, at a value of greater than £50 billion.
However standing between these offshore wind tasks and their grid connections are a whole lot of landowners and communities, a lot of whom are decided to cease additional electrical energy pylons being constructed.
© File photograph. Sandy McCookBlueFloat Power Renantis Partnership portfolio director David Robertson stated whereas it was necessary to hurry up grid connections to satisfy internet zero targets, the general route of the electrical energy grid was simply as necessary.
Mr Robertson stated the UK wanted a “match for goal” and “future proof” grid community, and argued Electrical energy Act reforms would pace up planning and supply larger standardisation of tasks.
Nationwide Grid head of buyer connections David Wildash stated there wanted to be a “holistic strategy” to community design, bringing collectively tasks and minimising infrastructure spending.
Thistle Wind Companions vitality export capability supervisor Jean Lewis stated offshore wind wanted a coordinated trade marketing campaign to raised educate the general public on the significance of electrical energy infrastructure to a internet zero future.
Collaboration key to success
With the sector having weathered a storm of challenges in 2023, many audio system highlighted the necessity for larger collaboration between builders shifting ahead.
Ms Lewis stated many offshore wind builders are presently duplicating their surveying, planning and environmental assessments which is costing the trade each money and time.
She pointed to a scenario the place a number of Scotwind builders had separate marine survey vessels within the water on the identical time, surveying almost an identical sections of the seabed.
© BoskalisCoordinated information sharing, she advised, would reduce prices and expense for all builders and advised utilizing Scotwind and INTOG tasks as trial schemes to advertise larger trade collaboration.
Audio system additionally highlighted the advantages of larger collaboration and strategic planning are usually not restricted to offshore wind builders.
International Power Group government director Ian Sinclair stated the success of the Inverness and Cromarty Firth Inexperienced Freeport bid confirmed the advantages of bringing collectively aggressive companies.
He added that with a lot financial potential inside the Scottish offshore wind sector, companies wanted to recognise that in an rising sector collaboration would result in extra alternatives, not much less, and to deal with what they’ll do to assist one another.
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