Opportunities in the supply chain

New installation of electricity generation capacity in the renewables sector in the UK is dominated by the wind energy sector, with over 1GW of grid-connected, large wind turbines (ie. power rating around 1MW or greater) installed in 2006 and 2007. The industry is structured as follows:

Owners - often utility companies who have financial interest in having wind farms in their energy portfolio. Owners generally also operate their assets themselves.

Developers - take wind farms from initial idea through consenting, financing and construction to final completion and early operation, before selling on to owners. Frequently, utility owners have their own in-house development team.

Wind turbine manufacturers - design and assemble the wind turbine (including rotor, nacelle, and tower) from mainly bought-in components. These companies generally are based in Germany, Denmark and Spain and a number sell globally.

Balance of plant suppliers - whether onshore or offshore, frequently balance of plant supply is managed directly by the developer. Balance of plant includes foundations, site cabling, wind farm transformers and switchgear and access roads.

First tier suppliers - provide components or services to turbine manufacturers or balance of plant suppliers, for example gearboxes, generators, control systems, towers, transformers.

Second tier suppliers - provide components or services to 1^st tier suppliers such as machined parts, flanges, fixings, electrical components.New installation of electricity generation capacity in the UK renewables sector is dominated by the wind energy sector, with over 1GW of grid-connected, large wind turbines (ie power rating around 1 MW or greater) installed in 2006 and 2007. The industry is structured as follows:

For more information please visit www.bwea.com/.

Currently there are no manufacturers of large wind turbines headquartered in the UK. The UK has around the 8th largest installed base of wind turbines of any country. Much of the growth has been in the last few years, after the supply base was established in continental Europe, so there are few components supplied from the UK for assembly into turbines on the continent. With a global shortage of a number of supply chain items and the UK now establishing itself as the global leading offshore wind market, opportunities for UK suppliers with excellence to offer are significant.

For example, within three years the wind energy industry will use over half of the large SG iron castings manufactured globally and the market leader in wind is the biggest customer of industrial carbon fibre in the world.

The underlying cost of energy generated by wind turbines has been dropping for the last 20 years, through innovation in the design and supply of all aspects of wind farms. The UK has much to offer the sector in this regard as the trend of innovation continues, especially offshore. 

Key opportunities for the UK are:

• provision of assembly and construction facilities in UK ports for the offshore wind sector
• supply of standard components and services to the above, once established supply of balance of plant offshore 
• innovation in design and supply of components right across the sector

Support for the development of manufacturing generally is provided via the Regional Development Agencies or similar devolved bodies in Scotland and Wales. Additional European support via the Selective Finance for Investment (SFI) initiative is also available in some areas. UK Trade & Investment also provides help in drawing inward investment into the UK.

UK Renewables has strong links throughout the supply chain, especially in the wind sector. Please contact us if you would like to discuss a specific opportunity.