Industry leaders have called on the UK Government to expand the budget for the latest Contracts for Difference (CfD) auction, warning that the current £1.08billion allocation for offshore wind will limit new investment.
The plea follows the launch of Allocation Round 7 (AR7), which includes £900million for fixed-bottom and £180million for floating wind projects.
RenewableUK said the budget “will not maximise investment” and may only cover a quarter of the 20 GW of eligible capacity. Its executive director of policy and engagement, Ana Musat, urged ministers to “adjust the budget to maximise procurement, which could attract up to £53 billion in private investment in the UK economy.”
Scottish Renewables chief executive Claire Mack warned that a limited budget “would significantly restrict that value from reaching consumers and communities.”
Offshore Energies UK (OEUK) said the announcement was a “step forward” but cautioned that it “may fall short of what’s needed to meet the UK’s goal of 43 to 50 gigawatts of offshore wind energy by 2030.”
Mike Tholen, OEUK’s sustainability and policy director, said: “To galvanise investment and continue becoming more competitive, firms need a stable and predictable pipeline of work which can be built by domestic supply chains. But this approach must carefully avoid locking in high electricity prices for people around the UK.”
The sealed bidding window for offshore wind in AR7 will take place between 11 and 17 November, with results due on 14 January.
Energy minister Michael Shanks said: “This auction is another step towards delivering the clean power this country needs to end our reliance on volatile global gas prices, ensuring our energy security and bringing down bills for good.”