Green Energy Supply Chain Businesses Get Govt Help
Businesses involved in the supply chain for green energy have been urged to apply for a share of a new Government fund to boost UK competitiveness.
Businesses involved in supplying companies which manufacture wind turbines and parts for electric cars have been encouraged by the Business Secretary, Vince Cable, to bid for a share of the new Government fund introduced to try to make the UK more competitive.
The Advanced Manufacturing Supply Chain Initiative has been launched by Vince Cable. This is set to target the renewable energy sector and low carbon technologies. The initiative was based on an initiative by the Regional Growth Fund to help firms involved in car manufacturing and the aerospace industry but this has now been expanded to cover other areas involved in manufacturing.
Utility Exchange reported recently that energy suppliers had cut down on renewable energy projects and that the number of new projects had fallen significantly this year. The Government hopes that the fund will give a boost to businesses in the supply chain and as a result it will persuade new suppliers to manufacture in the UK.
Manufacturers have been suffering recently and have been hit by rising business electricity prices and gas prices, as reported recently by Utility Exchange. However, this fund will mean firms can apply for funding worth £2m or more.
Mr Cable said “Recent economic and natural shocks such as the ash clouds, tsunami and Japanese earthquake have shown the fragility of long-distance and single-source supply chains. I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations”.
The fact the green energy supply chain is not strong has been blamed for slowing down the emergence of a green energy market. The new Advanced Manufacturing Supply Chain Initiative will work in conjunction with the Regional Growth Fund which received a boost in the Chancellor’s Autumn statement.
Nick Clegg said of the extra funding for the Regional Growth Fund “This additional £1bn boost for British businesses means the Regional Growth Fund will create an estimated 500,000 jobs before the end of this parliament”.
Whether or not the new Supply Chain Initiative will encourage new green energy manufacturers to the UK remains to be seen.