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The offshore wind supply chain review
The Chinn Review outlines the barriers faced by the UK supply chain and presents recommendations for the industry to action, to secure the UK's position as the world leader in offshore wind development.
In May 2014, Michael Fallon, then Minister of State for Business, Enterprise and Energy, and Benj Sykes of Dong Energy, in their capacity as co-chairs of the Offshore Wind Industry Council, invited Matthew Chinn from Siemens to review the current state of the UK offshore wind supply chain. The objective of the review was to understand what more could be done to support the development of the UK supply chain, in order to capture maximum economic benefit from the UK’s position as the world leader in offshore wind development.
The Chinn Review revealed a number of barriers which need to be overcome if a strong and sustainable supply chain is to grow in the UK.Many companiess within the supply chain describe unique challengess, often related to the location, size and type of company rather than the product. However, the main barriers that industry raised cut across all sectors:
- The need for clearer visibility and volume in the order pipeline and market;
- The difficulties facing new entrants without a track record in offshore wind;
- The challenges posed by the way risk is dealt with through the supply chain;
- The need for industry to move towards a culture which better enables collaboration and the efficiencies which follow;
- The need for a clearer support landscape.
A series of recommendations are presented, addressing the different barriers. These focus primarily on:
- The need for clarity on the long term market, including a 2030 emissions target for the power sector;
- Consistent messaging from UK Government;
- Governments, developers and the supply chain working together to help new market entrants;
- Actions on commercial issues, including bonding.
The Chinn Review will be sent to the Offshore Wind Industry Council (OWIC) with recommendations for both industry and Government, with an expectation that these ideas - which have come from the industry itself - will be driven forward through the Council. Much of what was reported to the review team has been said before in recent reports or working groups, showing that action is clearly needed.
OWIC needs to act promptly and decisively to drive forward actions that will make a tangible difference to opportunities for the supply chain in the UK. Working collaboratively to deliver this programme and learning lessons from other industrial sectors will help the offshore wind sector in the UK achieve industry-wide efficiencies, cost-reduction and support sustainable jobs and investment.
However, this is a long-term industry involving substantial financial investments and, if the UK supply chain is to have a chance of succeeding in gap areas, the Government has to show its long-term commitment to supporting the market and do so consistently.
Read the Offshore Wind Supply Chain Review in more detail.
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Biography - Matthew Chinn
Matthew Chinn, Siemens
Matthew Chinn was invited to lead the review, as his - then - position as Managing Director of Siemens Energy Sector in the UK meant he was well placed to provide insight on the UK market, looking across the sector as a whole. To avoid bias and potential conflicts where Siemens has direct involvement in the supply chain, the scope of the study was restricted to exclude Siemens’ main area of direct interest. The scope therefore excluded wind turbine manufacture, substation equipment, and wind turbine maintenance.