Industry bodies have welcomed the UK government’s backing for 8400MW of offshore wind in AR7.
RenewableUK said the results – which beat the previous record of 7GW set in the 2022 auction – were vital to strengthen the UK’s energy security and to reduce electricity bills.
It estimates the power provided by the six fixed-bottom and two floating arrays awarded contracts will save billpayers £1.7bn a year compared to the alternative cost of gas while also creating 7,000 jobs.
“This is a great result for Britain’s energy security and for hard-pressed billpayers, because these new wind farms will generate the power we need at a lower cost than new gas or nuclear plants, and at a stable and predictable price,” said RUK Executive Director of Policy Ana Musat (pictured).
“The UK has made the right decision to roll out renewables at speed and at scale, giving our country greater energy security and protecting consumers against volatile global gas prices which caused the last energy crisis.”
Trevor Hutchings, CEO of the Renewable Energy Association, added: “Today’s record offshore wind auction is a turning point for Britain’s energy system. Securing 8.4GW of new capacity will help cut bills and restore confidence in the market.
“With offshore wind now around 40% cheaper than new gas power, expanding renewables is the fastest, cheapest way to stabilise prices, reduce reliance on imported gas and take back control of Britain’s energy.”
Cornwall Insight Renewable Generation Lead Lucy Dolton also said the results sent a positive signal to the market and that the volume of participation (with up to 25GW eligible to enter AR7) demonstrated the UK “remains an attractive place to invest, with strong competition for CfDs”.
ORE Catapult CEO Steve Foxley said AR7 had given more pipeline certainty. However, the UK would also need a “laser like focus” on innovation to fully reap the benefits of offshore wind.
“That means meeting the technology challenges of delivering the volume of offshore wind capacity needed, whether that’s through supercharging our ability to manufacture turbines quickly, finding new opportunities to extending the life of our existing fleet, or embracing new smart approaches to how we manage and maintain turbines,” he added.