As the UK government’s Department for Business, Energy & Industrial Strategy launches the consultation on amending the Contract for Difference (CfD) process in order to integrate much more floating wind, it is worth considering why this is required and what it can achieve. The CfD, once seen as just yet another form of subsidy, has now taken on a new role in the energy sector – an effective mechanism for propelling growth in the supply chain, unlocking untapped offshore resources, and delivering low-cost renewable energy to the consumer. So, what does this mean for floating wind?

From our own background in the offshore energy sector we have long worked with the oil & gas industry to address the challenges associated with deploying floating turbines in harsh and challenging environments. The lessons learned in the North Sea and other major regions by the oil & gas sector have accelerated installation times, improved operations and enabled streamlined maintenance strategies.

As the floating sector moves towards industrialisation, the potential for diversified growth in the oil & gas supply chain is enormous. But, while a natural transition in terms of scope, it will be a big change in terms of scale. And it will require an adaptation of business models, improvements in ports and harbours and a fresh approach to volume manufacturing and services to meet the needs of upcoming Scotwind licensing round and future tenders off Britain.

With the vision for offshore wind in the UK of 30GW by 2030 as set out in the industrial sector deal, 40GW in the Conservative manifesto, and the requirement for 75GW by 2050 as highlighted by the Committee on Climate Change (CCC) if Britain is to meet its net-zero emissions target, we will need a bold, new approach to development. Meeting this demand for space offshore will require deploying floating farms in deeper waters, further from shore, in locations with more challenging seabeds and in areas with as-yet unharnessed wind resource. The Scotwind leasing is a great start, but beyond this we can also look to many other opportunities for floating wind in the southwest and northeast coasts of England as well as off Wales.

As we seek to deploy floating wind in volume across the UK, like all forms of renewables, we are conscious of the need to minimise costs to consumers. This volume is where we begin to see the creation of the virtuous circle of deployment, supply chain and costs benefiting each other. With visibility of volumes the supply chain has the opportunity to mobilise and the incentive to compete, this in turn will drive down costs, which in turn will accelerate the rates of deployment, all this bringing us closer to CCC’s climate change-slowing target.

Do it right and floating wind can help the UK enlarge the role sea-based wind power plays in the country’s energy system. And, to restate, the opportunity here is not just about cleanenergy. Floating wind could be built into a market worth tens of billions of pounds by mid-century if the British government adapts the CfD auction system to support the sector, as a study last year from RenewableUK (RUK) and Scottish Renewables (SR) showed, with as much as £33.6bn ($43.4bn) of economic activity and 17,000 in-country jobs created by 2050.

Having a CfD that sets a place a table for floating wind will mean the supply chain can start to invest in a focused way, developers can start to plan, and commercial scale projects can get underway. This approach would not only help us reach our targets of 75GW but will also lead to increased economic growth across the UK. In truth, we feel the RUK/SR study’s numbers – which also include calculations that floating wind could spur annual UK exports of over £200m by 2031 and over £500m by 2050 – may be modest. With demand for floating expanding across the globe, now is the time for UK government to provide the tools for UK industry to seize this massive opportunity.

· Cian Conroy is floating wind technology developer Principle Power's senior business development manager for Europe

Wind

'Forecasts of a $45bn UK floating wind market by 2050 might be modest'