Waveney MP Urges Government to Maximise UK Content of Energy Infrastructure Projects

On Tuesday (March 26), Waveney MP Peter Aldous lead a Parliamentary debate on the opportunities for economic growth offered by the renewal of the UK’s energy infrastructure and called on the Government to maximise the British content of UK energy infrastructure projects.

Speaking about the offshore oil and gas and wind sectors in the House of Commons, Mr. Aldous warned the Government that more must be done to increase UK content in the supply chain for offshore energy projects in the country.

“In short, we need to strive to maximise the British content of UK energy infrastructure projects. At present, there are concerns that we are not meeting this challenge. Some two years ago, the Thanet wind farm was completed, with less than 20% of the £900 million of investment going to UK firms. Although companies such as ScottishPower and DONG Energy are aware of the need to maximise the UK content of contracts, we are some distance from achieving the Offshore Wind Developers Forum’s target of 50% UK content for UK offshore wind farms,” Peter Aldous said.

He also emphasized the importance of UK firms winning contracts in overseas countries, as that is currently very difficult.

Mr. Aldous detailed this issue: “The UK Government should apply pressure at national and EU level to ensure that UK companies are not disadvantaged when competing for overseas contracts. Sembmarine SLP, based in Lowestoft in my constituency, advises that in its experience, when it competes for projects in Norwegian, Dutch, German and French waters it has practically no chance of winning owing to blatant protectionism.

“In the offshore wind sector, Seajacks, based in the constituency of my hon. Friend the Member for Great Yarmouth (Brandon Lewis), points out that the French Government have explicitly stated that they intend to award licences for offshore wind sites to bidders favouring the French supply chain. British companies are not looking for favouritism or trade barriers; they are seeking a level playing field. I urge the Minister, together with his colleagues in the Department for Business, Innovation and Skills and the Treasury, to do all he can to help achieve that.”

The Minister of State, Department of Energy and Climate Change, Mr. John Hayes, said:  “My hon. Friend [Peter Aldous] rightly emphasised that the investment in our energy infrastructure is vital. The UK must be able to compete to stay ahead of others in what is increasingly a competitive world order. This is, to the use the Prime Minister’s phrase, a global race. We must ensure not just that we keep up, but that we win that race.

“It is estimated that replacing and upgrading our electricity infrastructure and closing power stations over the next decade will require no less than £110 billion of capital investment. The Government’s electricity market reform programme, which my hon. Friend mentioned in his remarks, is designed to drive investment that will support as many as 250,000 jobs in the energy sector.”

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Offshore WIND Staff, March 28, 2013; Image: peteraldous