United Kingdom Energy Offshore Wind Opportunities for U.S. Companies

The UK’s target of up to 50GW of new offshore wind power by 2030 presents opportunities for U.S. companies to enter the UK market, partner and learn from experienced players, and integrate into global supply chains.

When the UK’S Department for Energy Security and Net Zero (DESNZ) released its Powering Up Britain strategy and its Offshore wind net zero investment roadmap in March 2023, it focused on renewable sources as “cheaper, cleaner, domestic sources of energy.” The UK government aims to develop up to 50GW of offshore wind by 2030 and increase offshore wind’s current capacity of 13.8 GW five-fold by 2035. Furthermore, the government has proposed categorizing offshore wind as “critical national infrastructure” in an effort to accelerate the build-out. The UK public has shown strong support for offshore wind energy.

The UK is already a global leader in offshore wind with 13.8GW of capacity as of 2023 and a current pipeline capacity of 78GW including a mix of fixed and floating offshore wind farms. This includes Dogger Bank A, B, and C (and potentially D) off the northeast coast of England. When completed, Dogger Bank will be the world’s largest wind farm. While scoping and development of new offshore wind farms continues, new cable and monopile manufacturing facilities are being built along with port infrastructure to support the offshore wind industry. 

The UK government seeks to promote growth in offshore wind energy in multiple ways. It has a regulatory regime covering the full project lifecycle, providing certainty for businesses and investors, and DESNZ aims for further streamline and reform to the system. The innovative Contracts for Difference (CfD) scheme, which offers low-carbon electricity generation plants a flat rate over a set amount of time, provides reliable financing streams. The government-established Offshore Renewable Energy (ORE) Catapult partners with industry, academia, and other stakeholders to provide products and services in research, innovation, testing for certification, and support supply chain growth. ORE Catapult also hosts a Floating Offshore Wind Centre of Excellence (FOW CoE).

The UK government’s focus on securing clean energy by expanding offshore wind capacity, especially in the North Sea, presents a market opportunity for U.S. companies. UK ecosystems of experienced and new industry players offer a chance for U.S. firms to learn and partner with innovative leaders and integrate into supply chains. The UK market faces some of the same challenges as in the United States: inflation, the need to upgrade the electric grid, build new infrastructure, and train a skilled workforce. The UK also presents an excellent opportunity for U.S. companies to learn and gain experience.

By working with international companies already doing business in the UK, such as at Dogger Bank, U.S. firms have the chance to enter the UK offshore wind market and grow their global supply chains. U.S. firms can build on these relationships for offshore wind projects in other parts of the world, including in the United States. Many UK offshore wind companies are looking to apply their skills and expertise and expand into the United States and are seeking new partners in the growing U.S. industry. By connecting early with UK companies, U.S. firms can build best of breed supply chains to serve the domestic market and take advantage of incentives in the Inflation Reduction Act.

For information or updates on the UK offshore wind energy sector, please contact Rachel Fefer, Commercial Specialist.