UK Commits £300 Million to Strengthen Domestic Wind Farm Supply Chains

The UK Government is taking a bold step in securing its offshore wind future, earmarking a substantial £300 million for developing domestic supply chains that will cut the nation’s dependency on imports. This funding, aimed at stimulating homegrown manufacturing, promises to enhance the UK's energy security and create a wealth of new jobs in the manufacturing sector.

In a significant announcement, Prime Minister Keir Starmer and Energy Secretary Ed Miliband are set to present the complete plans at an international energy security summit. The summit, jointly hosted by the UK Government and the International Energy Agency (IEA) this week, will outline how this funding is fast-tracked to bolster the supply chain for vital offshore wind components, such as floating offshore platforms and the cables that connect them.

Starmer said his Ministers are “bringing forward much-needed investment in our domestic offshore wind supply chains, strengthening our security and creating good jobs for our welders, electricians, and engineers”.

This significant financial infusion is a broader push to accelerate the UK’s energy transition. The funding will be allocated via Great British Energy, a new state-owned entity created by the Labour-led Government. Its mission is to de-risk the energy transition and attract private investment by providing solid backing for offshore wind manufacturing projects.

Great British Energy’s interim CEO Dan McGrail said: “We will help the UK win the global race for clean energy jobs and growth by investing in homegrown supply chains and ensuring key infrastructure parts are made here in Britain.

“We will work closely with businesses across the clean energy sector to get funding out as fast as possible and get projects off the ground.”

But that’s just the beginning. The UK Government is already backing offshore wind developers with an incentive structure—the Clean Industry Bonus—that rewards companies for sourcing components from local suppliers and creating jobs in areas that need them most. This initiative, introduced under the previous Conservative administration, is helping foster a strong local supply chain while encouraging investment in the nation’s renewable energy future.

The UK’s long-term vision is clear: by 2030, renewables and nuclear will dominate the national electricity mix. Gas-fired generation? It will account for just 5% of the total by then. A significant expansion in renewable energy projects, particularly offshore wind, is crucial to making this vision a reality. Labour’s manifesto boldly pledged to quadruple the UK’s offshore wind capacity, setting a target of around 60GW.

To ensure this ambitious goal is met, Ministers have appointed a special task force, led by former Climate Change Committee chief Chris Stark, to chart the roadmap to 2030. Stark’s team, which includes experts such as Nick Winser, Tim Pick, and Juliet Davenport, is tasked with ensuring the UK meets its targets despite the challenges ahead.

However, challenges are looming. A report commissioned by the Government from Baringa highlights critical vulnerabilities in the UK's offshore wind supply chains, which are already facing global pressures. Demand for components is rising, but supply chains remain fragile, especially with fluctuating energy and material costs. The analysis warns that there is a “high” or “medium-high” risk of capacity constraints for key offshore wind farm components, including floating foundations.

Despite these risks, the report highlights the significant opportunities for expanding domestic manufacturing. Strengthening the UK’s ability to produce offshore wind components locally could reduce costs, accelerate project timelines, and create new employment opportunities, positioning the UK on a path to a more resilient and self-sustaining clean energy future.

Reacting to today’s announcement, the TUC’s assistant general secretary, Kate Bell, said: “This is an important step forward. As chaos grips global trade, we need strong domestic supply chains delivering good quality jobs and energy independence – here in the UK.”

Green Alliance’s executive director Shaun Spiers said: “In the face of global instability, leaning into clean energy investment is the right call: for our economy, energy security, bills and jobs, as well as the climate. Bringing forward funding now, rather than waiting for the Spending Review, sends a strong signal to industry that Britain is open for business and takes the argument directly to those who would have us go slow.”