UK: Energi Coast Calls for Stability in Budget to Enable Offshore Wind Sector Development

Energi Coast, North East England’s Renewables Group, has urged the Chancellor to make offshore wind a priority in next week’s Budget to ensure the UK can be placed at the heart of the energy revolution.

The group, which is supported by 22 North East England companies from the offshore renewables supply chain, that any changes to subsidies received by the industry will put further pressure of the sector, which is at a critical stage in its development.

Opposition to offshore wind have targeted the sector as a way for the Chancellor to save money by cutting subsidies to the industry.

Citing the uncertainty and disruption caused in the surprise tax on North Sea oil & gas projects brought in by George Osborne in his last Budget, Energi Coast is calling for the stability required that will encourage increased confidence in the offshore wind market among both the public and the industry.

Any reduction in subsidies would have a negative impact on confidence and immediately affect the plans of developers, investors and the supply chain looking to invest in the industry.

 Alex Dawson, Chairman of Energi Coast, said: “The offshore wind industry is not looking for hand outs, but an equitable and stable environment during this significant period in its development. As an emerging industry we have been made an easy target, but subsidies are a tried and tested practice for the energy sector. No energy sector has developed without subsidy, be they direct transfer, preferential tax treatments or research and development intervention.

 “The country’s economic challenges have also given anti-wind demonstrators a platform to voice their opposition. However, it is well worth noting that public support for offshore wind farms remains consistent – usually between 70 and 80 percent approval. “If the Government listens to reactionary opposition they could lose a sector that has the potential to be a jewel in the country’s industrial crown.

 “The Chancellor has said the Government should manufacture its way out of recession. In offshore wind they have a golden, once in a lifetime opportunity to build a world leading industry that creates real jobs, a sustainable energy resource and future tax revenues for UK PLC.”

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Offshore WIND staff, March 15, 2012; Image:  energicoast