Friday 1 March 2024

Scotland urges UK action on offshore wind funding

Scotland urges UK action on offshore wind funding

The spotlight is on Scotland's offshore wind industry as Scottish Renewables pushes for immediate action from the UK Government ahead of the impending Contracts for Difference (CfD) funding round.

The budget allocation for CfD Allocation Round Six (AR6) is crucial for Scotland's role in achieving the UK's net zero targets and maintaining its position in renewable energy.

Scottish Renewables emphasised the need to maximize successful offshore wind projects in AR6, particularly following the absence of bids from offshore wind developers in the previous CfD auction.

Securing at least 10GW of offshore wind projects in AR6 is considered essential for the UK to meet its 2030 objectives.

Scotland's potential contribution to the UK's energy landscape is significant, with plans for offshore wind projects including the 30GW ScotWind leasing round and the Innovation and Targeted Oil & Gas 5GW leasing round.

Scottish Renewables advocates for strategic priorities in AR6, such as optimising auction budgets and adjusting reference prices and load factors, to harness the full potential of renewable technologies.

Claire Mack, Chief Executive of Scottish Renewables, said: "The UK Government faces a choice between further energy insecurity or future economic prosperity.

"With the UK remaining one of the most gas dependent economies in Europe, underperformance in AR6 will leave UK consumers less energy secure and more exposed to high, volatile gas prices.

"It is therefore essential that the UK Government provides a budget for AR6 that aligns with Scotland’s renewable energy ambitions and maximises the number of projects across all technologies that are successful in winning contracts."

Written by

Sumit Bose

Trending Articles