A second wind: maximising the economic opportunity for UK wind manufacturing
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In terms of offshore wind capacity, the United Kingdom is second in the world only to China. Yet in the next seven years, the UK must install triple the amount of offshore wind compared to the past 14 years.
Unresolved issues persist with wind deployment in the UK – such as slow planning and consenting, struggling grid infrastructure, and management and skills shortages. The failure to build up domestic wind manufacturing capacity has also proved to be an economic missed opportunity.
In this report, the authors argue for a green industrial strategy for the wind sector that should focus on expanding the UK’s specialisation in wind manufacturing, to help put the UK on track to energy independence and on course to meet its ambitious climate targets, while reaping the economic opportunity of the green economy.
Key findings:
- While global manufacturing capacity meets current demand for wind turbines, future supply will fall significantly short of demand. To meet global net zero 2030 targets, the world’s wind manufacturing annual capacity will have to increase to 350GW (up from the currently planned 120–140GW).
- China now accounts for three-fifths of the world’s manufacturing capacity in wind nacelles and blades respectively. Chinese wind turbines are currently between 20 to 40 per cent cheaper than those manufactured in Europe.
- The UK’s weak specialisation in wind manufacturing represents a missed economic opportunity as well as a drag to energy independence and net zero objectives.
