The upcoming Contracts for Difference (CfD) auction will fall well short of delivering the expansion of offshore wind needed to hit the government’s 2030 50GW target, according to industry body Energy UK.
The government has set a target for 50GW of offshore wind capacity by 2030 and, at present, there is around 27GW in operation or in receipt of a CfD contract.
As future offshore wind developments will almost exclusively come through the scheme, that means forthcoming auctions will need to deliver another 23GW.
However, Energy UK analysis shows that, as it stands, the scheme will fall well short of achieving this.
The long lead-in times for such projects means the extra capacity will need to come from the next three annual auctions, working out at a record 8GW each round.
Yet the forthcoming (AR5) auction will, at best, bring forward 3.2GW of new capacity – 4.8GW short of the necessary amount and meaning the next round will have even further to catch up.
Energy UK’s deputy director Adam Berman, said: “Developers are facing challenging investment conditions, but the government simply hasn’t gone far enough in recognising the effect of higher costs in the forthcoming round.
“The stark reality is that without rapid government intervention, the UK is set to fall short of our clean energy targets.
“As the 2030 target moves further and further into the distance it will lead to increased costs and emissions, and risks the UK falling behind in an increasingly competitive international market.
“We’re calling on the government to revisit the AR5 budget, and to take urgent action to ensure the UK continues to attract crucial international investment.”