UK: Humber’s Firms Face Cost-Reduction Challenge

Driving down costs is one of the biggest issues for companies wanting a place in the renewables supply chain, says a Humber-based industry expert.

Developers looking to find suppliers and partners will increasingly expect a focus on cost-reduction according to Andrew Oliver, head of renewables at legal firm Andrew Jackson, which has offices in Hull and Grimsby.

Mr Oliver highlighted the issue ahead of a major green energy conference in the Humber which is focussing on the main challenges that could prevent local companies securing work in the emerging market.

Renewing The Humber takes place tomorrow (Tuesday, May 1) at the KC Stadium, Hull.

Mr Oliver said: “The main issue affecting the renewables industry and those businesses entering it is an economic one.

“All the renewable energy developers and the industry in general are under pressure to drive down costs per megawatt-hour.

“What organisations have to understand is that renewables will not be a simple licence to print money – developers will be looking for cost-effective solutions.

“When it comes to tendering for work, the pencil will be sharpened on costs and prices.”

Renewing The Humber is aimed at helping local businesses gain a better understanding of the region’s growing green energy industry.

Andrew Jackson, which has built up considerable experience acting in many areas of the sector, including both on and offshore wind power, is sponsoring the official drinks reception at the conference.

This year, the event has the theme of Meeting the Challenge and will look at many of the issues critical to success in renewables, from skills and recruitment, to finance, innovation and doing business overseas.

Mr Oliver said companies in the Humber need to have the “X-factor” in every area of their operations, if they are to be successful in the fast-paced renewables market, where competition comes from firms across the UK and beyond.

He said: “Although the Humber has a geographical advantage – particularly for work in the offshore wind sector – firms in the area have no guarantee this will be the critical difference.

“Businesses in the region need to prove they excel in every area.

“They need to make sure they have got the necessary accreditations, procedures and policies in place and properly prepare and present their business.

“These accreditations are important, so developers don’t have an easy reason to knock you out of the running for a contract at the beginning of a process.

“Yet, you can’t gain the right accreditations by doing this in a rush.

“That’s why it’s essential you get the right marketing, legal advice and other support from the outset. Preparation and knowledge is key.

“Renewing The Humber, as an example, provides an opportunity to learn more about the industry and exchange ideas and network.”

Andrew Jackson is one of the region’s best-established legal practices, offering services to clients based both in the UK and overseas.

With its broad commercial base ranging from advice on shipping and maritime law through to trade agreements, employment and property law, the firm’s renewables team can advise on all the legal issues that may arise from those entering, or already doing business, in the energy sector.

The company has acted for several offshore wind farm developers as well as many companies involved in the operation, maintenance and chartering of support vessels, together with dealing with cabling and compensation agreements.

Renewing The Humber, sponsored by KMS Facilities Group, takes place on tomorrow (Tuesday, May 1) at the KC Stadium, Hull, and is organised by the Renewables Network and other event partners.

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Offshore WIND staff, April 30, 2012; Image:  Renewables Network