Energi Coast believes that the Government’s announcement of the Renewables Obligation Certificates (ROC) offshore banding is a major step forward for the UK Offshore Wind Industry.
It is predicted that changes to subsidies for generated renewable electricity could incentivise between £20 billion and £25 billion of new investment in the economy between 2013 and 2017.
It was expected that the ROC bands of government funding to support offshore wind developments, would be delayed until the next parliamentary term after an announcement was delayed before the summer recess.
The announcement today confirmed the various bandings for renewable technologies under the Renewables Obligation – the Government’s main mechanism for supporting large-scale renewables – for the period 2013-17 and starting in 2014 for offshore wind.
Alex Dawson , Chairman of Energi Coast , said: “We believe this is the first step to creating some stability in an industry, which has the potential to become a cornerstone of a successful economy.
“Confirmation of the ROC banding ensures that vital Round 2, Round 2.5 and first of the Round 3 projects can begin construction. This will give the supply chain the necessary lead in time to be able to serve the majority of the Round 3 build. However, to ensure this is not just a false dawn, the Government must now clarify its Electricity Market Reform as soon as possible to ensure that the developers have confidence post 2017. ”
He added: “This announcement and expected investment it will generate will have a positive impact on the North East of England as the region is well prepared to serve the next stage of offshore wind developments.
“North East England companies have already laid the foundations by creating an integrated and innovative offshore wind supply chain that can meet the requirements of developers across the European offshore wind market.”
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Offshore WIND staff, July 25, 2012; Image: Energi Coast