FEATURE SPONSOR
SPOTLIGHT ON ABERDEEN Challenges
CONTRACTS FOR DIFFERENCE (CFDS) More recently, the award of CfDs in the round one allocation to Mainstream Renewable Power's Neart na Gaoithe project and further from home Scottish Power Renewables' East Anglia One offshore windfarm demonstrate the achievement of significant economies of scale, the mainstreaming of offshore wind and projects moving forward through the development cycle.
The highly competitive prices achieved by these offshore projects in this auction (up to 18% lower than previously) is also encouraging as cost reduction is one of the major challenges for the sector.
ECONOMIC AND ENVIRONMENTAL BENEFITS To win the very significant economic and environmental prize that the offshore wind industry offers the UK, efforts to address and overcome the challenges must continue. Aberdeen as a global energy capital has a unique role to play in making offshore wind work – the city is renowned for its problem solving capabilities and the development, commercialisation and deployment of new technology.
CENTRE OF EXCELLENCE As a world class energy centre of excellence, Aberdeen has over forty years’ experience and many strengths. There are approximately 1,000 local energy companies employing over 40,000 people and these companies between them are active in sixty-five global markets.
The work force in the North East of Scotland is highly skilled and their skills are excellent for the development of offshore renewables both at home and around the world. In fact, the capability of the people of Aberdeen City and Shire spans the whole energy project life cycle from inception to de- commissioning.
The North East of Scotland is now the largest employer in offshore wind in Scotland by some margin. This is a significant achievement and one the city and its industry can be proud of.
LEARNING FROM OIL & GAS Much can be learned from the North Sea oil and gas industry’s cyclical cost reduction activities. This experience suggests that key activities for cost reduction are the removal of duplication and supply chain development, streamlining of contract structures, share of experience and data, economies of scale, the development and deployment of technology and communication of problem solving and best practice.
COST REDUCTION, CO-OPERATION AND INNOVATION
Summed up, the way to a successful, industrial scale offshore wind industry will be cost reduction, co-operation and innovation.
Councillor Jenny Laing Leader
Aberdeen City Council Click to view more info Click to view more info
www.windenergynetwork.co.uk
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