How to turn an energy shortfall into windfall
“The reason we are building this is to protect our customers against what has happened over the last week where the sudden cold spell has produced a rise in demand.”
Mr Cooper said there had been issues with planning permission for some sites, where local residents raised concerns about the safety of gas storage facilities.
“People are very concerned about having gas storage on their back doorstep but we have done quite a lot to reassure the local population that the facility is quite safe,” he said.
Despite fossil fuels dominating the energy debate over the last seven days, renewables have also come under scrutiny following a major announcement which promises to drastically increase the UK’s offshore wind energy generation capacity.
The Crown Estate last week revealed the winners of £100 billion worth of licences which could provide electricity for up to 19 million homes in the UK.
Although all of the contracts went to major energy firms – with much made of the fact that most of them are based outside the UK – local environmental business specialists are convinced the West Midlands still has a significant opportunity to tap into this potentially huge market.
Fred Mead, director of the Birmingham-based Environmental Business Club, which has been involved in initiatives to help local firms diversify into supplying the wind energy sector, said there was a “tremendous opportunity” for companies in the region.
“It’s so exciting it’s not true – when all the other engineering and manufacturing arenas are feeling depressed, along comes this massive opportunity.”
He said although the contracts to make the large parts of the wind turbines were likely to go to foreign manufacturers, lower down the supply chain there would be significant opportunities for West Midland firms.
“Some things will be totally excluded like the big stuff like the towers and the blades – that won’t be made here.
“But with for example things like generators, there’s a company called Converteam at Rugby who are already making the generators and this will be a massive opportunity for them.
“There are other companies making things lower down the supply chain in the West Midlands – people making bolts or bearings for example.
“The core items that go into building a wind turbine are generators, gearboxes, shafts and hydraulic control systems and all of these things have been made in the West Midlands for 100 years.”
Despite the fact that most of the contract winners are based abroad, Mr Mead said the scale of the demand generated by the offshore projects meant there was still a huge opportunity for local companies to supply overseas-based original equipment manufacturers and tier one production firms.
“There is a tremendous opportunity if tackled in the right way.
“The opening is in two different ways – one is capacity because current supply chains are totally inadequate to supply this level of demand so there has got to be an opportunity there.
“The supply chain doesn’t exist currently to supply this amount of kit.
“Yes the manufacturers will be ramping up their existing suppliers, but there is an opportunity because of high demand to break in.
“The other opportunity is the chance for innovation.
“There is a big opportunity to look at the problems which have occurred in the past and find innovative solutions – new ideas for instance on how you install the turbines and all the grid connection issues.”
* The recently-launched Renewable Energy Supply Chain Opportunities (RESCO) programme is teaming up with the East and West Midlands regional development agencies and the Crown Estate to host an event to outline the supply chain opportunities for West Midland firms following the latest offshore wind announcements.
The event, which will provide opportunities for regional business to meet with the selected offshore wind developers, will take place on February 25 at the Imago suite, Holywell Park Village Park, Loughborough.
Businesses wishing to register for the event should email iesr@staffs.ac.uk or call 0121 616 5920.
