OWIC & The Sector Deal

The Offshore Wind Industry Council (OWIC) https://www.owic.org.uk/ is a senior Government and industry forum established in May 2013. It was formed to drive the development of the world-leading offshore wind sector in the UK. It is comprised of members drawn from the leading UK and global firms in the offshore wind industry, including developers and original equipment manufacturers.

The Council oversees and drives the implementation of the Offshore Wind Sector Deal, co-Chaired by Industry and the UK Minister of State for Business, Energy and Clean Growth.

The Offshore Wind Sector Deal

The Offshore Wind Sector Deal was the first Sector Deal ever made in a renewable energy technology. This signified a shift in UK Industry towards renewables. The Deal was agreed and published in March 2019 and since then the industry has been working hard, alongside Government and others, to deliver on the various commitments made.

You can view the Sector Deal here.

Of course policy changes over time due to political, environmental and economic factors. For example, when the Sector Deal was implemented – the UK’s offshore wind targets were created around a target of 30GW of offshore wind by 2030 – this has now increased to 50GW by 2030. Whilst this is of course a welcomed ambition and creates greater opportunity for regional, UK and export benefit capture, it conversely presents a challenge in terms of supply chain capability and the availability of people, jobs and skills. Despite this challenge, the industry continues to increase its efforts to work successfully in these areas.

Clusters sit under the ‘Place’ heading of the Offshore Wind Sector Deal Foundations.

Sector Deal Commitments

30GW by 2030 (now 50GW)

PEOPLE
  • ~27,000 skilled jobs by 2030
  • New skills model to track and report workforce data
  • Actions to increase equality in the industry from 16% to 33%
  • Increased training and mobility from other sectors
  • Collaboration with universities on R&D

BUSINESS ENVIRONMENT
  • Auctions for 30GW by 2030
  • Target of 60% UK content
  • Support to access global market, aim for a fivefold increase in exports to £2.6bn p.a.
  • Independent review of supply chain requirements

IDEAS
  • Offshore Wind Growth Partnership fund (OWGP) of £250m to help develop R&D and supply chain
  • Co-funding of innovation to create new IP
  • Technical advancement to continue cost reduction
  • New technologies
  • System Integration measures to manage variability

INFRASTRUCTURE
  • ~£40bn investment into infrastructure & clean energy.
  • Creating a pan government / industry program to addressing strategic barriers such as aviation, offshore transmission and cumulative environmental impacts
  • New seabed leases ensuring a sustainable pipeline of projects through the 2020s and into the 2030s.

PLACES
  • Helping coastal communities prosper across the UK, including economic benefits and growth
  • Creation / development of regional clusters
  • Stir up local supply chains – highlight opportunities
  • Engage with and learn from existing regional clusters

Cluster concept & deliverables

Offshore wind clusters have naturally occurred as OSW projects have developed. Offshore wind clusters drive & deliver…

  • Competition
  • Economies of scale
  • Productivity
  • Knowledge
  • Innovation
  • Business opportunities
  • Inward investment
  • Employment
  • Growth in the local economy
  • Global export potential