Report claims energy system failings holding back job hopes

Dec 7 2009 by Adrian Pearson, The Journal

A FAILING energy infrastructure system is holding back jobs and investment that will be worth millions of pounds in the North East, a new report claims.

Business leaders have warned that more has to be done to pave the way for the 40,000 jobs expected to be created in the “green economy” by 2030.

Without investment now, they say, ministers will have to make tough choices over “which lights to turn off” from 2015 as the country faces up to the realities of running an outdated power network.

The North East Chamber of Commerce has praised the efforts done so far to transform the region’s economy, but highlighted six areas, from skills to infrastructure, where more must be done.

Working with business services group Eversheds, the chamber has highlighted the number of jobs set to be created as wind turbine production moves to Tyneside but warned that victory could be for nothing if the National Grid does not prepare for a new generation of wind farms.

The huge structures are set to be placed in their hundreds off the North East coast but bosses say the power produced by these Tyneside-built giants face a problem once brought onshore.

An outdated electricity network means that businesses looking to build the shortest off-sea cable to the nearest shoreline – most likely in the North East – may not be able to “plug in” the energy to the grid.

The Government has been told it will have to spend billions updating the system.

Martyn Pellow, chamber president and a director at PD Ports, said: “We have a great opportunity here, we have the brownfield land to build on, we have the skills and the history to make this work.

“We can create these jobs but to do we must get the infrastructure improvements and in particular grid access.”