SSE has called on the UK to increase the 6GW cap in the current Contracts for Difference round to allow more offshore wind to secure capacity.
The utility said the limit was set before the government enacted new laws to reach zero carbon emissions by 2050, which was based on a recent Committee on Climate Change that suggested up to 75GW of offshore wind will be needed by 2050.
SSE chief executive Alistair Phillips-Davies stated in a letter to BEIS Minister Chris Skidmore that nobody should underestimate the scale of the challenge net zero poses.
“This year’s CfD auction includes, for the first time, a capacity cap of 6GW, restricting the amount of low carbon capacity that can be delivered,” wrote the SSE boss.
“By increasing this 6GW cap the Government can take a significant first step towards net zero, by demonstrating increased ambition for renewable energy. This move would also reflect the fact that eligible capacity for the auction has increased since the budget was allocated, meaning that the auction round will be more competitive than originally anticipated.
“The Secretary of State is able to change the parameters of the auction in this way at any time before it commences via a revised budget notice.”
SSE is seeking a CfD with is 1.5GW Seagreen project off Scotland.