A major new £1 billion investment deal has been announced to support the UK’s offshore wind supply chains and deliver thousands of clean energy jobs in industrial regions across the country.
The agreement brings together Great British Energy, The Crown Estate, industry and government to catalyse industrial renewal in areas such as Teesside, Scotland, South Wales and East Anglia. It forms a central pillar of the government’s Plan for Change and clean energy-focused Industrial Strategy.
The investment includes £300 million of state-backed funding from Great British Energy, £400 million from The Crown Estate and a further £300 million being raised by the offshore wind sector through the Industrial Growth Plan.
“This is an unprecedented collaboration between public and private investors with Great British Energy crowding in millions of private sector investment from industry and The Crown Estate,” said Energy Secretary Ed Miliband. “We are witnessing the coming of age of Britain’s green industrial revolution.”
The funding will back the domestic manufacturing of key offshore wind components including turbine towers, blades, floating platforms and HVDC cables, while also upgrading port infrastructure from Leith and Teesside to Great Yarmouth and Port Talbot.
Great British Energy CEO Dan McGrail said: “Today’s announcement highlights the unique role Great British Energy can play in the market. By providing state-backed, catalytic investment, we can deliver on our remit to crowd-in investment.”
RenewableUK estimates the plan could create an additional 10,000 jobs by 2035 and boost the UK economy by £25 billion.
The investment will also be supported by up to £544 million from the government’s Clean Industry Bonus, encouraging developers to prioritise projects in the UK’s most deprived communities. This could support 14,000 jobs and attract £9 billion of private investment over the next four years.
A unified public finance ecosystem will also be developed, bringing together the National Wealth Fund, The Scottish National Investment Bank, Crown Estate Scotland and others to support faster deployment of clean energy infrastructure.
“This deal is good for developers, consumers and our Clean Power Mission,” said Richard Sandford, Chair of the Offshore Wind Industry Council. “It’s vital that industry and government keep working together to remove barriers.”
