Wind Energy Update: Addressing recommendations to cut supply chain costs

The report by the Offshore Wind Cost Reduction Task Force provides five recommendations of how costs can be cut in the supply chain; £3billion could be saved. The recommendations to cut supply chain costs are to:

Create supply chain risk register to identify and address areas of weakness.

Increase engagement with component suppliers to ensure the adequate capacity for growth.

Put in place mechanisms to support SMEs to enter the market. This will reduce costs by increasing competition.

Ensure there is financial support and regulation framework from component and wind turbine manufacturers to increase market certainty.

Create supply chain confidence by revealing project timelines and help decision making.

Responding to the report, Charles Hendry, energy minister, said: “I am encouraged that this report shows that substantial cost savings can be achieved if action is taken and I welcome this valuable work.” If Charles Hendy believes this then, with the right tools, the supply chain can radically improve and everyone in the supply chain can benefit from

In a reflection of the need for costs to be reduced and increasing business, developers, OEMs and suppliers have committed to meet and collaborate at the Wind Turbine Supply Chain Conference on 4-5th September in Berlin. We will be trying to address some of the issues that the report says will create more confidence and cut costs in the supply chain. For example:

Revealing project timelines and decision making
We have the procurement managers, CEOs and corporate managers from leading wind turbine OEM’s and developers including WinWind, Repower, GE Energy, Areva, RES Offshore and Leitwind. They will discuss with the industry their plans and selection criteria.

Risk management
Presentation from the practice leader of global markets, Tom Teixeria of the Willis Group, who will be presenting on the challenges in understanding and managing supply chain risk.

Increasing engagement with component suppliers
With round table discussions on the big four components, blades, gearboxes, towers and foundations this will initiate honest discussion between the component suppliers and purchasing managers

Supporting SME’s and financing the supply chain
With presentations from investors from BNP Paribas clean energy partners and leading consultant, Steen Broust Nielsen, there will be a understanding of where investment and the industry is doing forward.

Attend the supply chain event of the year where we will address all the issues to provide the most successful supply chain strategy for your business and the industry!