In a significant move to stimulate offshore wind projects, the UK government announced a 66% increase in the guaranteed prices for its upcoming renewables auction. Striving to encourage more investments after the previous auction fell short of attracting offshore wind projects, the government aims to elevate its offshore wind capacity to 50 gigawatts (GW) by 2030, aligning with climate targets and enhancing energy security. Energy Security Secretary Claire Coutinho emphasized the vital role of the annual auction in securing ample homegrown clean energy, reducing bills, and fortifying energy independence.

The offshore wind sector has faced challenges such as rising supply chain and interest rate costs, leading to project cancellations. Despite the absence of offshore wind projects in the last auction, it successfully supported other technologies, including solar, tidal, and onshore wind, capable of generating 3.7 GW. The upcoming auction, scheduled for March next year under Britain's contract-for-difference (CfD) scheme, offers a strike price of £73 per megawatt hour (MWh) for offshore wind projects, a significant increase from the previous £44 per MWh. Floating wind projects, in earlier developmental stages, will see their strike price rise to £176 per MWh from £116.

Project developers welcomed the announcement, viewing it as a positive step toward boosting ambitions in the renewable energy sector. Keith Anderson, CEO of Iberdrola’s ScottishPower, highlighted the significance of the move and emphasized that the overall budget for the next auction round, set next year, would be a crucial indicator of the government's commitment to driving renewable growth.

Source: reuters.com