Several industry organizations expressed dissatisfaction with the UK government’s offshore wind budget for Contracts for Difference (CfD) Allocation Round 7 (AR7), with WindEurope labeling it “disappointing.”
WindEurope criticized the UK government’s GBP 1.08 billion budget, asserting it undermines the growth of the country’s offshore wind sector and could impact the broader European industry.
The UK currently operates 12.5 GW of offshore wind capacity, with a 50 GW target set for 2030. With only two auction rounds remaining to achieve this goal, the current budget could leave the UK behind schedule, WindEurope added.
“With this budget, the UK risks missing out on £53 billion in private investment and 45,000 jobs. Every gigawatt of offshore wind contributes £2–3 billion to the UK. More than 20 GW of offshore wind projects are ready to bid in this auction, but only about a quarter will proceed with this budget,” the organization stated.
“This budget could severely limit the growth of offshore wind in the UK. Many projects are ready to be built, and both consumers and industry seek the cheaper electricity they would provide. However, with this initial budget, only a quarter of projects will move forward,” noted Giles Dickson, CEO of WindEurope.
RenewableUK’s executive director of policy and engagement, Ana Musat, stated that the budget will not maximize investment in new offshore wind farms.
“We have a record amount of offshore wind capacity eligible for this auction – over 20 gigawatts – but the current budget would only secure about a quarter of that. With significant competition this year, we expect competitively-priced bids. The government should adjust the budget to maximize procurement, potentially attracting up to £53 billion in private investment in the UK economy,” Musat added.
“Investment in floating wind technology is crucial. Early investment in these projects will help build supply chains and reduce costs, enabling us to scale up in the next decade.”
Claire Mack of ScottishPower Renewables emphasized the importance of this year’s auction for growth in Scotland’s offshore wind sector and capitalizing on existing supply chain investments. She warned that failure in this round could jeopardize Scotland’s energy security and industry growth.
“A record capacity is eligible for AR7, and competition will ensure new capacity is secured at the best value to consumers, despite global cost pressures. The announced budget could significantly restrict that value from reaching consumers and communities. We urge careful consideration to ensure the final budget aligns with our national interests,” Mack added.
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Original Story at www.offshorewind.biz