Offshore wind developers have secured contracts for around 5300MW of capacity in the UK government’s Allocation Round 6 renewables auction.
Nine deals for fixed bottom projects were awarded in the process totalling 4.9GW, along with a single floating scheme.
The strike price for fixed offshore wind projects was between £54.23 per megawatt-hour and £58.87/MWh – the majority being at the former level for “permitted reduction” entries.
The technology had been set a £73/MWh bid ceiling prior to the auction.
Flotation Energy and Vargronn’s 400MW Greenvolt floater meanwhile cleared at £139.93/MWh, below the Pot 2 cap of £176/MWh.
It is a return to form for offshore wind in the UK’s flagship Contracts for Difference scheme following last year’s failure to secure any offshore capacity amid price concerns.
ScottishPower chief Keith Anderson said the offshore wind results for AR6 show the sector is now “back on track” after last year’s auction.
In total, 9.6GW of renewable energy capacity cleared the Allocation Round 6 auction across all technologies.
In Pot 1, onshore wind developers emerged with a clearing price of £59.90/MWh.
A total of 21 onshore wind farms were awarded the 15-year government contracts, totalling 990MW.
No remote island schemes came through the auction, however.
Solar was the big winner in Pot 1, emerging with almost 3.3GW of capacity across 93 winning schemes at a strike price of £50.07/MWh.
Tidal stream projects in Pot 2 secured deals for 28MW of capacity at a £172/MWh strike price.
WindEurope chief executive Giles Dickson said: “This is going in the right direction – and it is a big improvement on last year’s failed offshore wind auction.
“But the UK needs to secure more clean energy capacity in each annual auction reach its current targets. Auctions like this also help to unlock new supply chain investment – and are key to strengthening the UK’s existing supply chain.”
Energy Secretary Ed Miliband said: “These results show that together, this government and the energy industry are securing investment into our country.
“This auction has produced a record number of solar projects bolstering our mission for a solar revolution, we have powered forward with onshore wind, secured the largest commercial floating offshore wind project in the world and got the offshore industry back on its feet.”
On the back of AR6, the Energy Secretary is working with the industry to “accelerate ways” that the Contracts for Difference system and other energy policies can be expanded, so that more renewable energy, including offshore wind, can be connected to the grid, and quicker.