The latest report from the University of Edinburgh’s Policy and Innovation Group, supported by the Supergen ORE Hub, evaluates the economic benefits of building a strong UK-based supply chain to support offshore renewable energy development. The analysis reinforces sector-wide calls to strengthen the UK supply chain to facilitate the acceleration of offshore renewables deployment, enhancing competitiveness and delivering significant economic benefits for the UK.
This updated policy paper highlights the significant potential value of sustained government support for supply chain development which will drive growth in these emerging industries.
The report looks at two scenarios — a higher ambition and a lower ambition — to evaluate the economic benefit to the UK where local supply chains are supported and strengthened.
- In total, these industries could add between £21 billion and £86 billion to the UK economy, depending on how competitive the UK supply chain becomes.
- Under the higher ambition scenario, there could be nearly 68,000 full-time jobs by 2040 and over 166,000 jobs by 2050.
- UK-based projects alone could contribute £18 billion to £41 billion in economic value, adding up to 756,000 job-years between 2025 and 2050.
- Exports could bring in an extra £3.3 billion to £45 billion, showing potential for much bigger gains where an ambitious approach to market support is applied.
- Most of the value and jobs come from manufacturing, a key example being the manufacture of floating foundations for offshore wind. Operations, maintenance, and other equipment supply also make important contributions.
However, all these benefits depend on the UK making focused improvements to effective market support, modernisation of the supply chain and sustained innovation funding - otherwise, these economic opportunities won't be achieved.
This report is the second report in the series: "What is the value of innovative offshore renewable energy to the UK economy?" which has been updated and expanded.
