Gateways for renewables
The different stages of wind farm development require distinct port capabilities and supporting services.
Supporting the offshore renewables industry presents both short and long term opportunities for UK ports. Wave and tidal power is still in its infancy whilst offshore wind farm development is moving forward apace.
The UK offers the largest offshore wind market in Europe with a forecast capacity of up to 40GW as the UK government seeks to secure 15% of its energy requirements from wind by 2020. The process of identifying and leasing sites – to date Rounds 1, 2 & 3 – is managed by the Crown Estate.
Key for the ports is understanding developers’ requirements and working to provide them. “Supply chain” thinking is vital explains Richard Versteegh of Ecofys.
The different stages of wind farm development require distinct port capabilities and supporting services. These include turbine manufacture, construction and installation, commissioning and operation & maintenance (O&M). Installation of the foundations and the electrical infrastructure also have specific requirements.
Facilities and services can include a need for quay berths, dedicated land space, storage and offices backed up by 24 hour service support and a developing skills base and educational facilities.
Developers are looking for a package of capabilities and services, says Richard Versteegh, which a port will need to develop in co-operation with others. However, requirements will continue to evolve as turbines and fields become larger, deeper and further offshore and their service vessels in turn become larger.
As size and distances increase, tasks will become more ‘production line’ focused and operations, where feasible, will be moved onshore to reduce developers’ costs, requiring additional port facilities .
The Port of Grimsby East has been supporting some of the early sites. Martyn Boyers explained how their traditional fish business is complemented by the operation and maintenance (O&M) services now provided to North Sea wind farms. Working with Centrica the port has developed its capability and infrastructure and importantly the skills base to meet requirements.
Increasing amounts of work are now being undertaken by local labour, and long term revenue streams from O&M contracts are smoothing out the variable fish revenues and providing an assured return against investments. Further, local businesses are benefitting from providing support services.
However, ports wanting to develop this market may be faced with a conundrum. To be considered by developers, ports need to invest in the necessary infrastructure ahead of any assurance of winning contracts. Despite the UK governments pledge of up to £60m to meet the growing needs of offshore wind infrastructure at ports in England & Wales (similarly matched by a promise of up to £70m by the Scottish government) this remains particularly challenging. There is only limited funding available and the planning system is not geared up to support new development within the required timeframes. This is a shared concern across the industry and there’s no sign of this being resolved just yet.
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