Onshore wind sector contributed £548m to UK economy in fiscal 2011: Report

UK’s onshore wind industry has provided 8,600 jobs and contributed £548m to the economy in fiscal 2011, according to a joint report commissioned by Department for Energy and Climate Change (DECC) and trade body RenewableUK.

Compiled by BiGGAR Economics, the report anlaysed the impact of 18 wind farms of different sizes, and their contribution to the economy at national and local levels.

Out of 8,600 jobs, about 1,100 jobs were created at the local authority level, which is estimated to be worth £84m.

The report also predicts that if the onshore wind power is implemented at a scale suggested by the government’s Renewable Energy Roadmap, it would support about 11,600 jobs and benefit the economy to the tune of £0.78bn by 2020.

Secretary of State for Energy and Climate Change Edward Davey said onshore wind power is a cost effective and valuable part of the UK’s diverse energy mix as it not only provides secure, low carbon power to homes and businesses, but also supports jobs and brings significant investments.

"With the cost of the technology coming down, there is a real opportunity to reap the economic benefits onshore wind can bring," added Davey.

RenewableUK CEO Maria McCaffery said the survey shows the real value that wind provides – close to £700,000 for every MW installed in the UK, with over £100,000 benefitting the local authority area.

At the local level, about one in three of the jobs are in operations and maintenance, indicating that wind farms support employment even years after construction.

Majority of the value of contracts during the development, and operations & management phases of the wind farm process stays within the country – for instance, 98% of the investment on development equates to £106,330 per MW, and more than 90% of the operating and management costs equates to another £47,610 per MW.

The report pointed out that around 8,000 components required to manufacture a turbine are, or could be produced in the UK, which could boost the amount of UK content during the construction phase, from a point of £529,383 per MW today.

"As the sector develops, there are likely to be opportunities to increase this activity," the report concluded.