RenewableUK has branded the allocation of a record £800m to support offshore wind in the upcoming AR6 budget as a “missed opportunity” to secure maximum capacity in this year’s auction.
The industry body calculates the funding will enable only 3GW-5GW to secure CfD deals despite 10GW being eligible.
RUK chief executive Dan McGrail (pictured) argued the UK needed to “make up lost ground” after AR5 failed to attract any bids from offshore wind developers and to help the country meets its 2030 deployment targets.
He added: “We’re urging ministers to be more ambitious in revising this year’s auction budget upwards if new projects are consented in time, and to aim high in future auction rounds. This would enable them to get closer to their own target of 50GW by 2030 – over three times our current capacity.
“At current pace, this target looks unachievable.”
He said: “Although we welcome this budget increase, as it recognises that global economic conditions have changed, the Treasury has missed the opportunity to maximise the amount of offshore wind capacity which the UK could have secured in this year’s auction for new clean energy projects.
“We have more than 10GW of capacity eligible to bid in this summer. Building this is essential if we’re to make up lost ground from last year’s auction and create the substantial pipeline required to accelerate supply chain investment and growth in the UK. This funding will only secure between 3GW-5GW.
“This means a delay in attracting billions of pounds in private investment which we could have secured in this year’s auction to build and operate these projects, and opportunities to grow our supply chain to provide goods and services for projects here and abroad will not be maximised.”