The UK government needs to ensure that floating wind projects can successfully compete for supports at future Contracts for Difference auctions by setting a minima or similar mechanism, according to RenewableUK.
RUK policy head Rebecca Williams (pictured) told the virtual Global Offshore Wind conference its expectation is that BEIS will create a separate Pot 3 for fixed bottom projects in next year’s auction, leaving floating to compete in Pot 2 for “less established” technologies alongside wave, tidal and island wind developments.
BEIS is due to hold its next auction, CfD4, in 2021 and the Department for Business, Energy & Industrial Strategy (BEIS) is currently consulting on plans to change the scheme ahead following consultations with the renewables industry earlier this year.
“It’s not over the line yet, and we will need to see extra measures to ensure that floating wind can compete,” she said.
“This could be setting a minima or maxima for each technology, or constructing the auction in a way that provides a large enough budget to Pot 2 so that all technologies are competitive.”
Williams said the industry should “remind policy makers” of promises already to help early floating projects find a route to market as they finalise changes to the incentive mechanism ahead of next year’s auction.
The ruling Conservative party’s 2019 election manifesto promised to “enable new floating wind farms” and deliver 40GW of offshore wind by 2030.