Offshore Energies UK has warned that failure to approve at least 8400MW of new wind capacity in Allocation Round 7 would jeopardise the government’s Clean Power 2030 target.
The trade body said the UK must approve record volumes in the latest Contracts for Difference auction, which opened today, to recover from shortfalls in previous rounds.
Only one fixed and one floating wind project totalling 1.3GW have been awarded contracts since AR4, according to OEUK, following weak bidding in AR5 and AR6 due to low strike prices.
Further delays could arise from the exclusion of floating wind projects lacking full planning consent, OEUK added.
The group said floating wind offers higher electricity yields, is well suited to UK supply chains and faces less public opposition than fixed-bottom projects.
Administrative strike prices in AR7 have been increased by 10% compared to AR6 for both technologies.
OEUK wind energy manager Thibaut Cheret said: “We will be able to significantly increase wind-generated electricity by using the new generation of floating offshore turbines as well as fixed ones.
“Floating turbines can produce 25% more electricity and in future auction rounds the government should allow the same consenting flexibility to floating wind projects as it has done for fixed wind.”
He added: “The strike price involves a balancing act because it needs to be high enough to support the projects needed for CP2030 at the same time as controlling ultimate costs to consumers.”
OEUK also called for further government investment in domestic supply chains and support schemes such as the Clean Industry Bonus, which backs offshore wind developers that prioritise investment in oil and gas transition regions.
“This initiative will help to support highly skilled jobs such as engineers, electricians and welders across the UK,” said Cheret.