Industry groups have welcomed the UK government’s commitment to a rolling series of Contracts for Difference auctions starting in May next year and then every other year.
RenewableUK said the plans, covering both offshore wind as well as remote islands projects, will mean that UK offshore wind capacity will nearly double over the next decade.
R-UK chief executive Hugh McNeal said: “This is a ringing endorsement by government of our world-leading offshore wind industry and its ability to deliver for UK businesses and British industry.
“Today’s announcement confirming the budget and timing of new auctions, sets us on the path to deliver the tens of billions of pounds of investment that will be needed to meet our ambition of at least 30GW by 2030.
“This is good news for the domestic supply chain which can look forward to a pipeline of new offshore wind projects that will support tens of thousands of jobs across the UK.”
He added that the announcement also gives a boost to remote island wind, providing a “unique economic opportunity for island communities”.
Siemens Gamesa UK managing director Clark MacFarlane said: “This is a positive commitment from the government, which will see offshore wind playing a bigger part in the UK energy mix in the next decade.
“A regular commitment to auctions and higher deployment is exactly what the supply chain needs to consolidate today’s jobs and plan for the future ones.”
SSE director of generation development Paul Cooley said the announcement brings industry the certainty it needed.
Vattenfall UK country manager Danielle Lane said: “At a time of uncertainty, providing visibility of future auctions will help support investment in clean growth and further drive down the cost of offshore wind.”
EDF Renewables chief executive Matthieu Hue said: “We are very pleased the UK government is recognising what offshore and remote island wind have to offer to consumers across the country.”
MHI Vestas offshore wind chief executive Philippe Kavafyan said the company was ready to expand in the UK to meet the demand for the new projects the auctions would bring, while Orsted UK managing director Matthew Wright called the plans a “positive announcement”.
Scottish Renewables deputy chief executive Jenny Hogan said: “Today’s confirmation that next year’s auction will take place in May, and the schedule laid out for future rounds, provides much-needed clarity to Scotland’s renewables industry.
“Developers and supply chain companies across Scotland can now plan for projects over the next decade with more certainty.”
Greenpeace also welcomed the CfD announcement but was critical of the continued lack of support for onshore wind and solar power in the UK.
Greenpeace UK head of energy Kate Blagojevic said: “Offshore wind’s enormous cost reduction makes it the logical choice to provide the backbone of the UK’s energy needs, and we welcome the government providing certainty for investors.
“But this fall in price is far from unique. Onshore wind is also getting cheaper all the time, and is now the UK’s cheapest electricity source. Solar has been dropping for so long that it has actually reduced in cost by an astonishing 99% since the technology was commercialised.”
She added that the government should ditch support for nuclear power and favour all forms of renewables.
Image: reNEWS
Industry joy at GB auction plan
By EBS