Recommendations & Conclusions
18 items
1
Conclusion
Second Report - Floating Offshore Wind …
Acknowledged
Floating offshore wind in the Celtic Sea will not only be key to meeting the UK’s Net Zero targets, it also presents an opportunity to bring significant investment into Wales and provide high quality jobs. If first-mover advantage can be seized for Wales the economic opportunity will be exponentially greater. …
Government response. The government acknowledges the opportunity presented by floating offshore wind and highlights its commitment to deploying up to 50GW of offshore wind by 2030 and its work with the Floating Offshore Wind Taskforce.
Wales Office
2
Conclusion
Second Report - Floating Offshore Wind …
Acknowledged
Developers need long-term targets and a clear pipeline of projects to unlock investment. Fully delivering on the opportunities for floating offshore wind in the Celtic Sea will require a high level of coordination across government and among public bodies. Given the scale and significance of this opportunity the UK Government …
Government response. The government acknowledges the importance of long-term targets and coordination, highlighting its commitment to deploying up to 50GW of offshore wind by 2030 and its work with the Floating Offshore Wind Taskforce.
Wales Office
3
Recommendation
Second Report - Floating Offshore Wind …
Acknowledged
The UK Government must set targets for floating offshore wind beyond 2030 up to 2045. Alongside these targets it should work with The Crown Estate to provide visibility on future leasing opportunities in the Celtic Sea beyond the current leasing round and bring forward a strategy setting out how this …
Government response. The government acknowledges the impact that deployment ambitions can have for renewable energy deployment, but retains the flexibility to adapt to changing circumstances. It will continue to review its plans and work with industry through the Floating Offshore Wind Taskforce …
Wales Office
4
Conclusion
Second Report - Floating Offshore Wind …
Accepted
Consenting bodies will face a significant ramp-up in applications from developers of floating offshore wind projects. In order to process these applications in a timely and coordinated manner and accelerate the delivery of floating offshore wind in the Celtic Sea it will be critical for these consenting bodies to be …
Government response. The government references reports from Tim Pick and the Welsh government regarding skills, and states that the renewables industry is working within the Green Jobs Delivery Group to develop the Net Zero Skills and Workforce Action Plan, and that the …
Wales Office
5
Recommendation
Second Report - Floating Offshore Wind …
Acknowledged
The UK Government should work with the Welsh Government to identify the staffing and resourcing requirements of consenting bodies necessary for the delivery of floating offshore wind at pace. Subsequent to this review, both governments should bring forward a joint plan and timetable for how these resources will be allocated …
Government response. The government acknowledges the need for environmental and biodiversity specialists and highlights the Net Zero Skills and Workforce Action Plan due in 2024, as well as the Welsh Government's review of marine licensing and consenting processes.
Wales Office
6
Conclusion
Second Report - Floating Offshore Wind …
Acknowledged
We recognise that investment in local supply chains must be balanced against accelerating programme delivery, bringing costs down for consumers and compliance with international treaty obligations. However, the potential for wealth Floating Offshore Wind in Wales 29 and job creation in Wales from floating offshore wind is too great to …
Government response. The government recognizes the potential for wealth and job creation in Wales from floating offshore wind and welcomes The Crown Estate’s requirement for developers to provide supply chain investment plans as part of their bid for a lease, and the …
Wales Office
7
Recommendation
Second Report - Floating Offshore Wind …
Deferred
We recommend The Crown Estate bring forward further detail on its supply chain requirements at the earliest opportunity to assist developers in preparing their bids. Alongside this it should formulate a credible mechanism for holding developers to their supply chain investment plans and ensuring these commitments are followed through.
Government response. The Crown Estate intends to provide further detail in this regard at the next market update.
Wales Office
8
Conclusion
Second Report - Floating Offshore Wind …
Accepted
Given the importance of ensuring local supply chains benefit from floating offshore wind it will be essential for supply chain requirements in Contracts for Difference auctions to be enforceable and brought into alignment with The Crown Estate’s leasing rounds. Contracts for Difference auction parameters must also take into account increased …
Government response. The government is working with The Crown Estate to coordinate their approach to supply chains, and future policy will be designed to maximize the development of a healthy, sustainable and secure Floating Offshore Wind supply chain, and that government makes …
Wales Office
9
Recommendation
Second Report - Floating Offshore Wind …
Accepted in Part
The UK Government should reform future Contracts for Difference auctions for floating offshore wind to include enforceable local content requirements as a condition of the contract. These requirements should be designed to align with those in The Crown Estate’s upcoming leasing rounds. It should also re-examine the parameters for Allocation …
Government response. The government is working with The Crown Estate to co-ordinate their future approach to supply chains, respecting that local content requirements are illegal under WTO trade rules. Government makes decisions about CfD auction design considering a wide range of evidence …
Wales Office
10
Conclusion
Second Report - Floating Offshore Wind …
Acknowledged
Developing regional port infrastructure for the manufacture and assembly of floating offshore wind components will require significant investment but will be necessary for local supply chains and jobs. The full economic benefits of floating offshore wind should go to the region and not be lost overseas. To ensure this happens …
Government response. The government states the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) opened for applications on 30th March 2023 and any funding awards will be based on a project’s ability to demonstrate value for money and their ability to meet the …
Wales Office
11
Conclusion
Second Report - Floating Offshore Wind …
Acknowledged
FLOWMIS will be critical for unlocking private sector investment in Welsh ports and making them ready for floating offshore wind. Investors require certainty on the UK Government’s commitment to this funding.
Government response. The government states the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) opened for applications on 30th March 2023 and any funding awards will be based on a project’s ability to demonstrate value for money and their ability to meet the …
Wales Office
12
Recommendation
Second Report - Floating Offshore Wind …
Acknowledged
The UK Government should set out a clear timeline for the allocation of FLOWMIS and commit to ensuring Welsh ports receive at least half of the available funding.
Government response. The government states FLOWMIS opened for applications on 30th March 2023 and that funding awards will be based on a project’s ability to demonstrate value for money and their ability to meet the strategic objectives of the scheme, but does …
Wales Office
13
Conclusion
Second Report - Floating Offshore Wind …
Accepted
A consistent theme throughout our inquiry was the need for long-term certainty to provide confidence to the sector and unlock investment. Much of this investment is likely to go to Port Talbot and the Port of Milford Haven which are set to play a key role in the delivery of …
Government response. The government welcomes the Floating Offshore Wind Taskforce’s Roadmap and the Floating Offshore Wind Manufacturing Investment Scheme is open to applications, and will continue to work with the sector and will remove barriers to help modernise The Crown Estate’s investment …
Wales Office
14
Recommendation
Second Report - Floating Offshore Wind …
Acknowledged
To provide ports with the confidence to make long-term investments in infrastructure The Crown Estate should set further targets for floating offshore wind in the Celtic Sea beyond its initial target of 4GW. Alongside this the UK Government should set out its future funding commitments to ports beyond the allocation …
Government response. The government welcomes the Floating Offshore Wind Taskforce’s recently published “Industry Roadmap 2040” and will continue to work with the sector, through bodies such as the Floating Offshore Wind Task Force and the Offshore Wind Industry Council (OWIC), to understand …
Wales Office
15
Conclusion
Second Report - Floating Offshore Wind …
Accepted
We recognise the benefits of a grid planned strategically for the whole of Great Britain. However, the UK’s decarbonisation efforts should also be planned strategically and there are distinct opportunities that arise from ensuring floating offshore wind in the Celtic Sea connects into Wales. This is the case particularly given …
Government response. The government states it is already addressing grid capacity constraints and strategically planning network infrastructure through the Holistic Network Design (HND) and upcoming Future Framework Government Consultation Response, including consideration of floating offshore wind in the Celtic Sea.
Wales Office
16
Recommendation
Second Report - Floating Offshore Wind …
Acknowledged
Wider decarbonisation goals should be considered when planning grid infrastructure. The UK Government should continue to appraise National Grid ESO’s Holistic Network Design and follow-up exercise with this in mind and ensure opportunities for decarbonisation in Wales are not missed when decisions over where to connect floating offshore wind in …
Government response. The Government will continue to address recommendations to improve anticipatory investment and strategic planning of the networks through the work outlined in the Holistic Network Design (HND) and upcoming Future Framework Government Consultation Response. The HND offers a recommended design …
Wales Office
17
Recommendation
Second Report - Floating Offshore Wind …
Accepted
Strategic planning of grid infrastructure will be essential for accommodating future GW targets in the Celtic Sea. National Grid ESO have stated that proposals on how to develop the network in the region will be given when more detail is known on the capacity and location of future floating offshore …
Government response. The government will deliver anticipatory investment through Ofgem's price control, allocating £3.1bn for network upgrades, and has appointed an Electricity Networks Commissioner to advise on further improvements, with an action plan due later in the year.
Wales Office
18
Conclusion
Second Report - Floating Offshore Wind …
Accepted
Long-term targets and a clear roadmap for delivery, as recommended elsewhere in this report, should be provided at the earliest opportunity to assist National Grid ESO in planning for improvements to grid infrastructure. Alongside this, the UK Government should continue to appraise National Grid ESO’s proposals, ensure these are fit …
Government response. The government states it is working with Ofgem and network companies to deliver anticipatory investment, and that Ofgem's price control will fund investment in the network for new connections, and has appointed an Electricity Networks Commissioner to advise on how …
Wales Office