16th April 2012
Cabinet
Agenda Item No_____9_______
Development of the offshore wind energy sector off the North Norfolk Coast – A Strategic
Positioning Paper and proposal for local partnership working arrangements
Summary:
This report provides a strategic overview of the development of
offshore wind energy schemes off the North Norrfolk Coast and
proposes a number of actions which will allow the District to realise
the economic and employment benefits associated with such
developments.
Conclusions:
The report proposes that the Council becomes a member of the
Norfolk and Suffolk Energy Alliance and works with local partners
through a new North Norfolk Renewables Partnership to respond
positively to enquiries from businesses connected with offshore wind
energy proposals and other renewable technologies wanting to
establish facilities and create new employment opportunities in the
district.
Recommendations:
Cabinet is recommended to:1. Note the contents of the report, particularly as it relates to the
proposed development of offshore wind energy schemes off
the North Norfolk coast and to acknowledge the economic
and employment opportunities presented by such
developments to the district over the next fifty years.
2. Endorse the proposal for the Council to become a member of
the Norfolk and Suffolk Energy Alliance for a one-off
contribution of £20,000 and to nominate a member of the
Council to represent the authority on the Alliance Board.
3. To endorse the proposal for the Council to work with local
partners through a North Norfolk Renewables Partnership to
promote the district to businesses operating in the renewable
energy sector and respond positively to inward investment
and new business enquiries from businesses operating in
this expanding economic sector.
Cabinet member(s):
Wards affected: Councillor Tom FitzPatrick
Primarily Priory and Walsingham, but potentially all
Contact Officer:
telephone number:
e-mail: Steve Blatch, Corporate Director
Tel:- 01263 516232
Steve.blatch@north-norfolk.gov.uk
Cabinet
16th April 2012
1.0
Introduction
1.1
With continued awareness at a global level of issues relating to climate change and
carbon reduction, there has over the past few years been an increasing number of policy
developments and investment announcements at a European and UK level with respect
to the introduction of renewable energy technologies. These developments have
resulted in an increasing number of proposals for new sources of electricity generation
being made to the District Council for onshore and offshore wind, solar and photo
voltaic, and anaerobic digestion and biomass, schemes.
1.2
Investment in such proposals, particularly supporting the development and operation of
offshore wind energy proposals, and to a lesser extent solar farm, anaerobic digestion
and biomass facilities; provide the District’s economy with new employment and
business opportunities.
1.3
Under the Jobs and Economy Action Plan of the District Council’s new Corporate Plan
the Council has stated that it wishes “to increase the number of new businesses and
support the growth and expansion of existing businesses”, through, amongst other
actions, “seeking to maximise the opportunities for the district to benefit from
investment in renewable energy developments off the North Norfolk coast”.
1.4
This report therefore outlines how the Council proposes working with partners so as to
realise the economic opportunities for the District of the development of the offshore
wind sector moving forward.
2.0
Context
2.1
Since 2008, the Crown Estate has issued licences for a number of offshore wind
developments off the UK coast – the largest concentration of which are in the southern
North Sea, with at least four schemes proposed off the North Norfolk Coast.
2.2
At a national level the growth of offshore wind developments represents a huge capital
investment and will support a very large number of new jobs and business opportunities for
the next fifty plus years. Whilst much activity in the sector to date has involved investment
by European companies, as the sector has developed and matured within the UK there
have been a number of strategic investment announcements made by both the public and
private sectors which will support an increasing number of job creating investment
decisions in locations around the UK coast. Examples include proposals made by turbine
manufacturing companies Siemens and Vestas to establish manufacturing facilities in Hull
and Sheerness, whilst more locally Great Yarmouth and Lowestoft have been designated
as one of five national Centres for Offshore Renewable Engineering (CORE) areas by the
Government which will be the focus of efforts to attract investment by offshore renewable
companies. In Great Yarmouth and Lowestoft the CORE designation will complement the
Enterprise Zone status granted to six sites across Great Yarmouth and Waveney.
2.3
In North Norfolk, development of the £1billion 317MW Sheringham Shoal development has
already seen significant investment made in the district by Norwegian companies StatOil
and Statkraft, which are joint venture partners in SCIRA, the company established to
operate the Sheringham Shoal development. SCIRA has established office, warehouse
and support facilities in Wells-next-the-Sea and has recently commenced construction of a
permanent support facility at Egmere to the south of Wells, which will provide long-term
employment for over 50 staff who will oversee the operation and maintenance of the 88
turbine development once it becomes fully operational later this year. However, SCIRA has
already had an important presence in North Norfolk, and particularly Wells, for a number of
years as the Sheringham Shoal proposal has moved through design and construction
phases. Supported by significant investment in new port facilities by the Wells Harbour
Cabinet
16th April 2012
Commissioners, including the construction of an outer harbour facility to accommodate
survey and support boats and onshore support facilities including warehousing and
stevedoring services which allows the supply of general provisions, specialist parts and
equipment out to the wind farm from Wells; SCIRA’s investment in the town has included
establishing an information “shop” on Staithe Street, and a temporary project management
facility in the former Wells Field Study Centre on Polka Road in the town. SCIRA has also
funded the Sheringham Shoal Wind Energy Visitor and Education Centre in The Mo at
Sheringham, as well as having established a Community Trust Fund which is able to
provide grants to local organisations taking forward projects with climate change,
sustainability or other environmental objectives. Whilst some of the contracts let by SCIRA
have inevitably involved specialist companies operating in an international context, a
number of which have established support facilities in and around Wells and employed
local people, the company has developed strong links with the North Norfolk Business
Forum through which it has established a suppliers directory and database allowing local
companies to bid for contracts associated with the development. SCIRA recognises the
benefits of local knowledge and establishing long-term relationships through engaging local
businesses and has already let contracts of considerable value to established local
companies including engineering and transport businesses, marine businesses and
suppliers, local hotels and retail businesses, as well as having engaged local architects,
public relations and other professional services, many of which will develop long-term
relationships with SCIRA providing supply chain and employment opportunities locally for
many years to come.
2.4
In addition to the Sheringham Shoal development, there are three or four further offshore
wind proposals with licences granted by The Crown Estate which could potentially be
serviced from Wells / North Norfolk, subject to the necessary statutory consents being
granted by the Marine Management Organisation. These are the Dudgeon Wind Farm off
the coast of Cromer; the Docking Shoal and Race Bank proposals to the north and northwest of Wells; and potentially the Triton Knoll proposal off the coast of Lincolnshire. Formal
decisions on all of these proposals are anticipated within the next twelve months and, if
granted approval, are expected to be developed over the period to 2020, potentially
creating significant economic and employment opportunities for the North Norfolk area,
based upon the experience of the Sheringham Shoal development.
2.5
Local partners particularly the Wells Harbour Commissioners, the District Council, the
Holkham and Walsingham Estates and the North Norfolk Business Forum are keen to
ensure that the opportunities to secure successive phases of new job-creating investment
associated with the development of further offshore wind farms off the North Norfolk Coast
are realised locally and have therefore proposed forming a working partnership structure in
order that a co-ordinated pitch and response can be provided to companies seeking to
establish a presence in and around Wells, based upon the facilities provided in Wells
Harbour.
2.6
Local partners believe the offer and attraction of Wells and its hinterland through to
Fakenham, including Egmere in the B1105 corridor to support the wind energy
developments off the North Norfolk Coast is complementary to the investments proposed in
the Great Yarmouth and Lowestoft areas and hopes to be able to develop strong and
mutually beneficial relationships with partners in Great Yarmouth and Lowestoft in meeting
the needs of the sector. Wells will not, for example, be able to serve as a support base for
the large specialist vessels which will be involved in the construction phases of new
offshore wind developments or fulfil a role as a supply base for the turbines and blades
because of the limited scale of the Wells Harbour and its quayside facilities, limited supply
of quayside storage and warehouse facilities and the need to balance any development
with the environmental designations which overlay the town and support the town’s strong
role as a tourist and visitor destination at the heart of the Norfolk Coast Area of Outstanding
Natural Beauty.
Cabinet
16th April 2012
2.7
Wells and its harbour / port facilities are however able to develop their role as a servicing
and support base for the offshore wind developments off the North Norfolk Coast being the
closest and therefore most cost effective base for the regular servicing of such
developments – including survey work, deployment of staff during the construction phases
of developments, servicing of the developments once operational, acting as a support base
for the supply of provisions to hotel ships and possibly accommodation platforms for
developments in the future and in the provision of emergency evacuation services in cases
of medical emergencies and bad weather. The Wells Harbour Commissioners are
confident that the investment made in the outer harbour facilities will be able to serve a
number of the proposed wind energy developments off the North Norfolk Coast as there is
likely to be a rolling programme of investment in different schemes and, based on
experience of the Sheringham Shoal development the maximum number of support boats
to operate from the harbour will be during the construction phase of developments, with
perhaps only four or six boats being required to support a development once operational.
2.8
Recognising the landscape designations surrounding Wells, the importance of the tourist
economy to the town and pressure on car parking facilities both within the town centre and
close to the beach; local partners have agreed that any investment proposed by wind
energy operators in support facilities – eg offices, control room facilities, stores and
warehousing etc should probably be established outside of the AONB area in the B1105
corridor to the south of the town. The B1105 is the principal access route to the town from
the south and opportunities exist to accommodate new development on a mix of brownfield
and greenfield sites at Egmere and Fakenham. Any facilities established at Egmere would
allow deliveries to stores and warehouses by HGVs to be achieved without increasing HGV
movements in the town. Similarly turbine maintenance engineers would be able to be
deployed from such facilities allowing them to park their cars at the support base and be
transported to the outer harbour by minibus, thereby minimising the impact of additional
traffic within the town.
2.9
Through such joint working local partners hope that a co-ordinated approach can be
developed in responding to inward investment and new business enquiries associated with
offshore wind sector developments allowing the District to realise the benefits presented by
this emerging economic sector through the diversification of the district’s economy,
realisation of supply chain opportunities and the provision of new and better quality
employment opportunities over the next fifty or so years. Further detail of a proposed
partnership working arrangement is provided in Section 4 below.
3.0
Norfolk and Suffolk Energy Alliance
3.1
In the Spring of 2011, Norfolk and Suffolk County Councils, Great Yarmouth Borough
Council and Waveney District Council, established the Norfolk and Suffolk Energy Alliance
as a means of co-ordinating local actions in support of the energy sector across Norfolk and
Suffolk. The Alliance recognised that the energy sector in its widest sense – ie offshore oil
and gas, nuclear and emerging renewable technologies, formed a significant element of the
economies of Norfolk and Suffolk, and particularly the Great Yarmouth and Waveney
areas. Local public sector partners therefore wished to engage with the East of England
Energy Group (EEEGr) and the emerging New Anglia Local Enterprise Partnership (LEP)
to present a strong case to both Government and energy sector companies that Great
Yarmouth and Lowestoft had particular strengths in terms of established companies, skills
and sites and premises assets to support future investment and development in the energy
sector. Early achievements of the Alliance, in conjunction with EEEGr and the New Anglia
LEP, was to secure Enterprise Zone status for parts of Great Yarmouth and Waveney and
in appointing an Inward Investment Manager to work with energy sector businesses to
attract new investment to the area.
Cabinet
16th April 2012
3.2
During the summer of 2011, North Norfolk District Council discussed with Norfolk County
Council its concerns that the focus of the Norfolk and Suffolk Energy Alliance overlooked
the growing importance and opportunities of the offshore wind sector to the Wells / North
Norfolk economy, together with the existing long-term strategic and economic importance
of the Bacton Gas Terminal facilities. Discussions have therefore been progressed with the
Alliance to the point that North Norfolk District Council has been offered the opportunity to
become a member / partner of the Alliance for a one-off financial contribution of £20,000
and for a member of the Council to be serve on the Alliance board.
3.3
Authority is therefore sought for the Council to become a member of the Alliance, with the
financial contribution being met from the Economic Development budget which during
2011/12 received a refund amounting to £21,987 upon the winding up of the former Invest
East of England organisation, which had been the inward investment agency for the six
counties of the East of England towards which the District Council had paid an annual
subscription over a number of years. Authority is also sought for the council to appoint a
member to serve on the board of the Alliance.
3.4
Benefits to North Norfolk of the Council becoming a member of the Alliance will include:• strategic engagement with Government and energy sector companies regarding
future developments in the offshore renewables and southern North Sea gas
sectors, the latter of which is important in terms of future investments proposed at
the Bacton Gas Terminal facility;
• an ability to both influence and gain benefit from the inward investment marketing
efforts of the Alliance which will be represented at UK and overseas events and in
the co-ordination of inward investment visits to the region where there may be
complementary opportunities for investments in Great Yarmouth / Lowestoft and
Wells / North Norfolk; and
• the opportunity for energy companies currently based in North Norfolk and those
considering setting up operations here to access skills training programmes,
specialist business development advice / support and business to business / supply
chain opportunities.
4.0
Proposed North Norfolk Renewables Partnership
4.1
In order that the North Norfolk District is able to maximise the opportunities presented by
offshore wind energy developments, local partners including the District Council, Wells
Harbour Commissioners, and the Holkham and Walsingham Estates have discussed how
local partnership working can be strengthened and co-ordinated in seeking to promote the
district to inward investment opportunities associated with renewable energy developments
and supporting such enquiries identify suitable premises / development sites, need to
obtain planning permission etc.
4.2
To date two informal meetings of partners have been held to discuss future joint working
and, with Cabinet approval, it is proposed to formalise this arrangement moving forward
and develop a North Norfolk Renewables Partnership website to promote our “offer”. An
example of a comparison website, is the GreenPort Hull website – greenporthull.co.uk,
which carries information about sector investments, development opportunities, and the
Enterprise Zone status which exists in Hull, as in Great Yarmouth and Lowestoft. Any
North Norfolk Renewables Partnership website would carry details of the facilities at Wells
Harbour, details of the wind energy development sites off the North Norfolk Coast, details of
sites and premises, initially in the Wells / Fakenham area capable of accommodating new
business investment and details of the planning process, together with key contacts and
links to partner websites such as the East of England Energy Group, Norfolk and Suffolk
Energy Alliance and the New Anglia LEP.
Cabinet
16th April 2012
4.3
Initially it is proposed that the focus of the Partnership will be on the requirements of
companies serving the offshore wind sector in the Wells / Fakenham corridor and that
partners will explore whether land and premises at Egmere on the B1105 to the south of
Wells could be developed as an Energy Sector Cluster Park. SCIRA have already secured
consent for their office and warehouse facility on land at Egmere and this facility is currently
under construction and other opportunities exist for the re-use of existing buildings,
redevelopment of brownfield sites and possibly development of greenfield land at this
location, subject to consultation with local stakeholders and detailed planning consent.
4.4
Local partners are also aware of the growth of solar / photovoltaic farm and anaerobic
digestion and biomass proposals both nationally and more locally, details about which the
Partnership could seek to develop in the medium term.
4.5
It is thought that the North Norfolk Renewables Partnership could in the first instance
become established and develop a website as detailed at para 4.2 above, for an initial cost
of £15,000. Cabinet is therefore asked to endorse the Council’s participation in the North
Norfolk Renewables Partnership as proposed and agree to the authority making a £5,000
contribution to the Partnership budget for the commissioning of a website with the balance
of such costs being met by other local partners. The Council’s contribution could be met
from an underspend of the Economic Development budget in 2011/12 and it has been
suggested by finance officers that this sum could be carried this forward into the 2012/13
financial year for this identified expenditure.
5.0
Financial Implications and Risks
5.1
This report proposes at para 3.3 above the Council becoming a member of the Norfolk
and Suffolk Energy Alliance for a one-off sum of £20,000, which is proposed to be met
from the Economic Development budget. At para 4.5 the report proposes that the
Council becomes a partner of the North Norfolk Renewables Partnership and that a sum
of £5,000 is made available by the Council to support the development of a partnership
website promoting the District to inward investors and new businesses operating in the
renewable energy sector.
5.2
The growth and development of the renewable energy sector and the potential
opportunities this offers to the district’s economy in terms of new investment, skilled
employment opportunities at rates of pay above those currently on offer locally, and
contract / supply chain opportunities for existing businesses, are considered to be
significant. The actions proposed in this report seek to position both the Council and
local partners positively in terms of our ability to realise the benefits of this emerging
economic sector for the district for many years to come. In this respect it is considered
that there are few if any risks, but many potential benefits in terms of brining quality jobs
and investment to North Norfolk from the actions proposed in the report.
6.0
Sustainability
6.1
At a strategic level the growth of renewable energy technologies is seen as a
fundamental component of the UK energy supply mix moving forward. In this respect
the actions proposed in this report seek to place the North Norfolk District in a strong
position to benefit from the growth of this sector both within and off the coast of North
Norfolk into the future.
Cabinet
16th April 2012
7.0
Equality and Diversity
7.1
This report does not raise any equality and diversity issues, but does seek to secure new
business and employment opportunities for local people in a sector where skilled
positions will offer rates of pay above the district average.
8.0
Section 17 Crime and Disorder considerations
8.1
This report does not raise any issues relating to Crime and Disorder.