The UK is a cornerstone of offshore wind energy, employing thousands of professionals from all over the world. It’s also home to some of the most ambitious and exciting offshore projects in the world, such as Kincardine Wind Farm, the largest floating offshore wind farm on the planet.
This central role, however, means that Brexit will inevitably introduce changes that will affect the entire European sector. Numerous points of tension need to be addressed as an entire industry attempts to traverse new requirements for employment, procurement, and customs.
A Strained Supply Chain
Offshore wind farms need highly specialised parts for assembly and for maintenance. Currently, those components are seeing a bottleneck where those units used to pass freely.
The Brexit deal has ensured no additional tariffs on trade with EU member countries. However, that hasn’t protected companies from delays caused by more administrative checks. The no tariff trade agreement also isn’t cut and dried. Components are sourced from different locations–some of which may fall outside the scope of tariff-free stipulations. “There are issues here which are not straight yet. It’s still trial and error,” says Jesper Bank, the Port of Esberg’s Chief Commercial Officer.
Navigating the North Sea
The North Sea plays a vital role in hitting the offshore wind capacity targets of several European countries, as well as the EU’s carbon neutrality ambitions. Coordination among these nations is key to accelerating developments and developing policies for the region. The North Sea Energy Cooperation is a group created to help align and set goals among all member countries.
Britain is currently excluded from the group, a decision criticised by the UK’s trade commissioner for Europe, Richard Burn: “We could create another multilateral body, but it seems a bit silly as there is one there already”.
John Pettigrew, Chief Executive of the UK’s National Grid reassures that both parties are still keen on working together. “Although we’re not part of the internal energy market, the commitment to co-operation between the UK and Europe continues,” he shares in an interview with the Financial Times. The National Grid is responsible for managing the UK’s electricity system, and owns subsea cables that export energy to countries like the Netherlands and France.
Another Extension for Workers
One of the boons of offshore work is getting the opportunity to travel broadly. Crews are typically made up of professionals from all over the world. Brexit introduces complications in terms of work permits for new and returning employees alike.
The last minute extensions for the Offshore Wind Workers Concession (OWWC) provides a glimpse at how difficult it is to sort arrangements for an industry with a large migrant workforce. First introduced in 2017, the OWWC exempted non-British employees from needing a work visa until October 2018.
Several extensions have been granted since then, with the latest one set to end last July 1. Yet the Home Office has since announced that it will be extending the OWWC by another 12 months to July 2022, after warning operators earlier this year to prepare for the end of the scheme.
Looking Inward
Alongside changes buckling work arrangements and the supply chain, movements are being made to pump growth into the local sector. The Department for Business, Energy and Industrial Strategy has announced grant funding for offshore wind manufacturers, which Business and Energy Kwasi Kwarteng predicts will generate 1,000 jobs in the North-East of England and the Humber.
The government has also announced plans to cut subsidiaries from companies unless they use British manufacturers. Major companies like Siemens Gamesa are shoring up against future changes by preparing to localise operations. The Spanish energy company already enjoys an advantage with its turbine manufacturing plant in Hull.
Such decisions to stimulate the local sector are not without contention. The European Commission has already expressed concern that the country may be biased towards awarding contracts to local turbine manufacturers–a violation of the EU-UK trade deal.
As a major producer and pioneer of offshore wind energy, the UK’s departure from the EU isn’t likely to turn operators and developments away. “It’s just harder work,” says Julian Brown, the UK country manager for Vestas.
Brexit has created turbulent tides around the offshore wind industry. Yet much of the struggle involves establishing administrative frameworks for employment and manufacturing. The interconnectedness of the European offshore wind sector means that cooperation will remain crucial for ensuring continued growth across borders.
