UK Energy Minister Graham Stuart has declared the country’s Contracts for Different system is “sound”, despite calls for changes to the auction regime to address intense cost pressures swamping the offshore wind sector.
Stuart told renews on the sidelines of GOW 2023 he recognises the impact inflation and the rising cost of finance are having on projects but pointed out developers are still reaching final investment decisions.
The Energy Minister said non-financial criteria are under consideration for the future but declined to commit to any alterations to AR6 next year, saying officials will await the outcome of the current auction before deciding what comes next.
For the full story, see the first reNEWS Live@ Global Offshore Wind 2023 show daily from the event in London.
Stuart also declined to comment on questions about the potential for AR5 to be undersubscribed due to the pressure on costs.
However, he pointed out that the government has examined financing and supply chain data in setting the current Allocation Round 5 strike price of £44 per megawatt-hour.