Prime Minister David Cameron has announced a massive cash injection to support the UK's renewable energy drive as part of the Government's National Infrastructure Plan.
Following today's announcement, global giant GE reaffirmed plans to invest £100 million to develop offshore wind turbine manufacturing facilities and locate design, application and service engineering resources in the UK.
Speaking at a CBI conference in London, the Prime Minister outlined plans to spend £60 million to upgrade port facilities, which he hoped would act as a catalyst to attract further private investment.
He added: “We need thousands of offshore turbines in the next decade and beyond… To help secure private sector investment in this technology, we’re providing up to £60 million to meet the needs of offshore wind infrastructure at our ports.
“And to help move things forward, the Crown Estate will also work with interested ports and manufacturers to realise the potential of their sites.
“It’s a triple win. It will help secure our energy supplies, protect our planet and the Carbon Trust says it could create 70,000 jobs.”
RenewableUK Director of Policy, Dr Gordon Edge, said: “We are delighted with the Prime Minister’s announcement today on the decision to retain the ports infrastructure fund, even more so as we are seeing an immediate positive reaction from turbine manufacturers detailing their investment plans.
"This is a great day for the UK’s wind industry. We are set to realise the full potential of offshore wind both in terms of energy and job creation, and are happy that the Government has shown vision and drive over this particular issue.”
Speaking in London, PM Cameron added: “I can announce today the UK’s first ever national infrastructure plan setting out the infrastructure Britain needs and how we will unlock some £200 billion worth of public and private sector investment over the next five years to deliver it.
“This is incredibly exciting, and it shows how, together, we can help create the right framework for growth in which British business can thrive and compete with the rest of the world.”
The government said the immediate challenge is to rebuild the economy, creating the conditions for enterprise to flourish based on an expansion of the private sector, saying the economy has been too reliant on growth from a limited number of sectors and regions.
It is hoped the infrastructure investment programme will help rebalance the economy and give industries the right conditions in which to grow.
In launching the Plan, Lord Sassoon, Commercial Secretary to the Treasury, said: “Today’s plan represents a broad vision of the infrastructure investment we need to underpin the UK’s growth and retain our competitiveness.
“For the economy to flourish, people, goods and information must move freely. Reliable infrastructure: energy, water, transport, digital communications and waste disposal networks and facilities, are essential to achieve this. Ensuring these networks are integrated and resilient is vital.
“We recognise the scale of the challenge and the need to encourage new sources of private sector capital. We are targeting Government’s own investment at a series of bold and critical projects that go to the heart of this vision and support a private sector led recovery.”
In the Spending Review the Government has committed over £40 billion to infrastructure projects. The plan includes:
• Investing in a new low carbon economy – including a Green Investment Bank, up to £1 billion for one of the world’s first commercial scale carbon capture and storage demonstration projects, and the provision of grants to increase the uptake of electric vehicles;
• Ensuring that the UK remains a world leader in science and research by continuing support for the highest value scientific research by maintaining a science budget of £4.6 billion, and £220 million of capital investment in the UK Centre for Medical Research and Innovation and £69 million in the Diamond Synchrotron.
Lord Sassoon continued: “The role of the Government is clear. It is to specify what infrastructure we need, identify the key barriers to achieving that investment and to mobilise the resources, both public and private, to make it happen.”
Paul Skinner, Chairman of Infrastructure UK, said: “Infrastructure UK will play an active role in driving forward this agenda across Government. This initial phase of Infrastructure UK’s work has validated the proposition that infrastructure development can be an important driver of the UK’s future growth and competitiveness and that there is real value in taking an integrated, cross-sector approach“.
The Spending Review confirmed that it would prioritise economic infrastructure that supports growth, the transition to a low carbon economy and encourage private sector investment in infrastructure.
According to GE, the fresh policy could create as many as 1,900 new clean energy jobs in the UK by 2020 - both GE jobs and those created in the associated supply chain with manufacturers of towers, blades, nacelles and other offshore wind technology all locating to the site.
“We are very pleased that the UK government has recognized the need to invest in ensuring that its port infrastructure can support the manufacturing of next generation wind turbines,” said Jeff Immelt, Chairman and CEO of GE, following a meeting with the Prime Minister at Downing Street.
“The UK has ample offshore wind resources that can provide clean energy for the UK as well as providing new, high-skill jobs for both GE and our suppliers in the UK. GE is ready to invest in the UK and hire the engineers, technologists and other skilled workers needed to make this a reality.
“We welcome the Prime Minister‘s plans to support port infrastructure, and reinforce the importance of the government continuing to create long-term certainty for offshore wind manufacturers and developers by committing to a sustainable financial structure.
“The UK government continues to demonstrate strong leadership in renewable energy and the jobs it can create."
In welcoming GE’s announcement, the Prime Minister added: "I want us to be a world leader in offshore wind energy. We are making these investments so that major manufacturers will decide that this is the place they want to come and build their offshore wind turbines. This investment is good for jobs and growth, and good for ensuring we have clean energy in the future and so I am delighted that GE has decided to bring their manufacturing to the UK."
At the core of GE’s European expansion plans is the development of GE’s next generation wind turbine, a 4-megawatt machine specifically designed for offshore deployment.
As the largest wind turbine in GE’s fleet, it will incorporate advanced drive train and control technologies gained through GE’s acquisition of ScanWind. The 4-megawatt wind turbine will feature GE’s innovative technology that eliminates the need for gearboxes.
GE’s UK manufacturing facility would produce the new 4-megawatt offshore wind turbine and future generations of GE’s offshore technology. This technology is already being demonstrated at a test site in Hundhammerfjellet, Norway, where the first ScanWind direct drive unit was installed in 2005.
However, John McShane, of energy analysts Saturn Energy, said the UK Government was calling on the private sector to lead the recovery just days after tying companies’ hands behind their backs with changes to the Carbon Reduction Commitment scheme.
He said: “Companies already reeling from the effects of other government cuts were relying on receiving money back for their energy saving - now, not only will they be fined instead but the government is asking them to lead the recovery.
“Many companies which invested valuable money and resources into energy-efficiency measures encouraged by the legislation will now be penalised at a time when they need every penny they can get.
“The government can’t expect companies to grow - and invest in a green future at the same time - if it keeps moving the goalposts.”
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