Thursday 16 November 2023

UK raises prices for offshore wind in renewable energy auction

The UK Government has increased the maximum prices for offshore wind projects in the upcoming Contracts for Difference (CfD) auction.

This adjustment, a 66% increase for offshore wind projects, from £44/MWh to £73/MWh, and a 52% increase for floating offshore wind projects, from £116/MWh to £176/MWh, is part of efforts to encourage investment in the nation's clean energy sector.

The CfD scheme provides a guaranteed price for electricity generated by renewable energy projects.

The recent changes aim to ensure that projects in the next CfD auction are economically viable and competitively priced.

The adjustments come after a comprehensive review that considered the impact of global events on supply chains.

This strategic move seeks to support the UK's ambition of having up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind.

Minister of State for Energy Security and Net Zero Graham Stuart said:  "Last year’s Contracts for Difference scheme saw more than 90 clean, homegrown energy projects and today we have shown our ongoing commitment to retaining our global leadership in renewable energy. 

"This critical update to the scheme's design provides further clarity and confidence to the offshore wind sector and ensures the scheme remains competitive for renewable developers investing in new low carbon technologies."