The government intends to double the capacity of renewable energy generation supported by its contracts for difference (CfD) subsidy mechanism when the next auction round opens in late 2021. It is also committing £160 million of investment to upgrade ports, infrastructure and manufacturing capability in areas where offshore wind generation is located including sites in northern England, Scotland and Wales.
Energy law expert Melanie Grimmitt of Pinsent Masons, the law firm behind Out-Law, welcomed the announcements.
"We see the ambitious target of 40GW of offshore wind by 2030 as vital not only to power homes but also to support the development of the low carbon - particularly hydrogen - economy," she said. "However, there is now an urgent need for delivery of the long-promised Energy White Paper and commitment to sufficient contracts for difference or alternative routes to market and fiscal stimulus to deliver this target," she said.
UK offshore wind currently produces around 10GW of energy, the largest installed capacity of offshore wind in the world. Newer 'floating' offshore wind, as envisaged by the UK government, can be installed further out to sea and in deeper waters than traditional fixed arrays, in order to take advantage of stronger winds.
In his speech, Johnson emphasised the role to be played by UK construction and manufacturing in delivering increased capacity. However, Melanie Grimmitt warned that increased 'local content' requirements could push up prices.
"It will be difficult for UK manufactured content to be competitive with other global manufacturing markets in the Gulf and Asia but it may help an otherwise stretched supply chain and there may be an opportunity to take a lead in manufacturing of components for floating offshore wind," she said.
Projects expert Gareth Phillips of Pinsent Masons warned that delivery of offshore wind on the scale envisaged by the government would require "significant change" to planning regulations, particularly those around protected habitats.
"As things stand, we can expect each new offshore wind farm to undergo a Habitats Regulations assessment and be required to deliver compensation measures at project level, which is a significant challenge," he said.
"To deliver on the aim to power all homes by offshore wind by 2030, the government must take a robust strategic approach to HRA and compensation measures – tackling these issues on a piecemeal basis at project level is not sustainable and would undermine the green recovery," he said.