Building the North Sea’s Energy Future

Background 

Last July, when the Labour government was elected in the UK, it committed to making the country a “clean energy superpower” as one of its five key "missions to rebuild Britain." A central part of this vision is Clean Power 2030 — an ambitious plan aiming for at least 95% of Great Britain's electricity generation to come from clean energy sources by the end of the decade. Offshore wind has an increasingly important role in meeting the UK’s electricity demand, becoming the country’s largest source of electricity generation for the first time in 2024.  

As part of this mission, Labour pledged to ban new drilling licenses for oil and gas in the North Sea. In August, the Department for Energy Security and Net Zero (DESNZ) announced that it would not challenge the judicial reviews brought against development consent for Jackdaw and Rosebank offshore oil and gas fields in the North Sea by Greenpeace. In January, the Scottish Court of Session ruled that the consent for these oilfields was granted unlawfully as emissions from burning the extracted oil and gas, Scope 3 emissions, were not considered in the Environmental Impact Assessments.  

There is strong recognition from the government of the history of the UK offshore industry and the importance of its workforce, particularly in Scotland and the Northeast of England. Supporting these workers through the transition to clean energy is therefore a key priority. 

Many of the skills required for the transition already exist, according to research commissioned by Offshore Energies UK (OEUK) that shows that 90% of oil and gas workers have transferable skills for offshore renewable jobs.  

Last month, a new energy ‘skills passport’ launched – led by Renewable UK and OEUK - backed by UK and Scottish Governments. This tool will support workers in transitioning careers in offshore wind initially, before being expanded to other renewables roles later this year.    

Building the North Sea’s Energy Future 

This week, the government announced it has launched a consultation that will put the North Sea – its communities, workers, businesses and supply chains – at the heart of Britain’s clean energy future to drive economic growth and deliver the Plan for Change.   

DESNZ’s consultation on Building the North Sea’s Energy Future will run for 8 weeks from 5 March to 30 April. It sets out the next steps in the government’s overarching objective for the North Sea to make it a world leading example of an offshore clean energy industry. 

The consultation includes how the government will deliver on its commitment to end the issuance of new licences for oil and gas exploration in the UK - aligning with the science on what is necessary to limit global warming to 1.5°C. In addition, it seeks input on the support needed to help workers fully benefit from the UK’s clean energy transition and engages with industry on managing existing oil and gas fields throughout the remainder of their operational life.    

On the same day, the government announced a £55.7mn investment into the Port of Cromarty Firth, securing critical facilities needed for the rapid development of new floating offshore wind farms. The investment, backed by a grant from the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS), will make it the first port able to make floating offshore wind turbines on site and at scale in the UK. 

In January, the government confirmed Aberdeen, Cheshire, Lincolnshire and Pembrokeshire as key growth regions for clean energy. To support workers access jobs, local partners will receive funding to identify the skills support that is needed in their area to deliver clean power by 2030. 

Dan McGrail, Chief Executive, RenewableUK said:  

“The biggest offshore wind farms in the world are being built in the North Sea and even more ambitious projects are being planned. Offshore wind is at the very heart of the government’s mission to reach clean power by 2030 and net zero by 2050, and the industry also offers the UK one of its biggest opportunities for job creation, industrial regeneration and economic growth.  

The North Sea is already playing a crucial role in powering the UK and this is set to grow in the years ahead. A future focused on offshore wind isn’t just cleaner - it provides a more stable energy system for billpayers as we will be less exposed to volatile international fossil fuel prices. Offshore wind also offers opportunities for skilled workers from other industries to transfer into this dynamic and innovative sector.”