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BUSINESS DEVELOPMENT


MARKET SIZE The last offshore farms to move from ‘planning’ to ‘consented’ were Race Bank (580MW) and Dudgeon (560MW), both in the Greater Wash area. Although the onshore sector is bigger in terms of installed capacity, it is the greater productivity of offshore wind farms that is key to delivering the total energy production at the low financial cost and low social cost required.


MARKET DEVELOPMENT – OFFSHORE SECTOR The target LCoE of £100/MWh is a difficult task to achieve. The degree of Government focus on providing the right environment for success reflects the value of achieving energy security as soon as possible, quite apart from the minimisation of environmental damage.


The Government established the Offshore Wind Cost Reduction Task Force, which reported in June 2012 and officially announced the LCoE target. Subsequently they established 3 workstreams as the key drivers of cost reduction. These are:


• Financial – focusing on the sources of investment and the costs of financing the massive capital investments


• Technical – focusing on the innovations of products and processes that will increase productivity and decrease the cost of production


• Supply Chain – focusing on the sources of supply chain costs that will repeat year after year if not resolved.


Workshop 1 will concentrate on the Supply Chain workstream as the focus which will influence the aspirations of most SMEs operating at tiers 3, 4 and 5. Even though a lot of the issues I will highlight in this article will not require your direct involvement, they will ‘set the scene’ for the customer expectations that are placed on you as a prospective supplier. They will determine the objectives that your customer is trying to achieve.


If, by attending Workshop 1, you can understand what is setting the agenda and why, then you will be in a better position to help your customer succeed and improve your long term relationship with him/her.


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www.windenergynetwork.co.uk


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