Definition of local content in offshore elevators – industry awaits specific regulations

On 2 March in Szczecin, the 2nd Forum of Suppliers of Polish Wind Energy was held – an event that was to give a new dynamic discussion about local content in offshore wind energy.

During the forum, representatives of government administration, energy companies and the shipbuilding industry debated the principles of building a national component in the offshore elevator supply chain.

Participants of the Forum of Suppliers of Polish Wind Energy and the position of the Ministry of State Acts

The event was attended, among others, by Minister of State Assets Wojciech Balczun, Deputy Minister of Infrastructure Arkadiusz Marchewka, Minister of Climate and Environment Paulina Hennig-Kloska, President of Orlen Neptun Janusz Bil, President of PGE Baltica Bartosz Fedurek and Marshal of the Zachodniopomorskie Voivodeship Olgierd Geblewicz. Representatives were also present shipbuilding and supplier sector for offshore.

The Ministry of State Assets reported that the work of the team had ended with the adoption of a proposal for a definition, but its publication will take place with the methodology for calculating the share of the national component and legal analyses. As Minister Wojciech Balczun stressed, the definition itself without measuring tools will remain a document of limited practical value.

The Ministry announced cooperation with the Central Statistical Office on monitoring the national component and including it in public statistics. In parallel, there are talks with the Public Procurement Office, which already today refers to local content in the State Purchase Policy. Finally, the new definition is to be incorporated into the public procurement system and the ownership supervision of State Treasury companies.

Local content and shipbuilding – real participation or marketing index?

During the forum, it was repeatedly stressed that local content could not only be a percentage declaration. It remains crucial to determine whether the national nature of the investment is determined by the registration address of the company, the place of production, the ownership structure or the actual added value produced in Poland.

If we are talking about a national component, we need to separate the implementation phase, the installation phase and the OEM phase. In each individual, we should determine the percentage of the national component and account for these phases separately. National producers are mainly phase one and here Polish companies should supply a large majority of the components, because here we have the highest competences and the most production capacity. We must talk about the work performed in Polish establishments and the competences that remain here. Phase two whether the OEM phase must not replace the construction of industrial competences.

Radosław Kowalczyk, President of SSN "Wulkan"

Deputy Minister of Infrastructure Arkadiusz Marchewka pointed out that already today specific orders are being made to national entities. He recalled the agreement of the Maritime Office in Szczecin to build the drifter in Szczecińska Stocznia "Wulkan" and about the award of a tender for the construction of a dredge for Partner Shipyard in Police. This is an example of activities to increase the participation of Polish companies in maritime investments.

Offshore elevator in Poland – regional dimension of the national component

During the debate, the regional theme was also clear. Marshal Olgierd Geblewicz stressed that the national supply chain in offshore elevator You can't just talk from a central administration perspective. The centres such as Szczecin, Police and Świnoujście have industrial facilities which can become a permanent part of the supply chain for offshore wind energy.

It was also pointed out that local content covers not only the production of structural elements, but also the development of service ports, logistics facilities and operational competences. These are areas that will decide on the sustainability of the participation of Polish entities in offshore projects in the long term.

The Szczecin Forum has not yet brought publication of the definition of local content, but has clearly shown the scale of market expectations towards public administration. The industry needs clear rules and a uniform methodology for calculating the national component, which will allow for comparability of data and a realistic assessment of the participation of Polish companies in offshore projects.

The economic environment expected the final document to be presented already during the event, but its publication was postponed. As announced by the Ministry, the definition together with the methodology of measuring the share of the national component is to be presented in the coming weeks. Only then will local first be able to be verified in practice – not as a declaration, but as a development support tool domestic industry.