As part of its flagship renewables support scheme, The UK government has increased the price cap for tidal energy projects by 29 per cent
With the aims of offering certainty for developers, UK government raised the maximum bidding price for the next renewable energy auction from £202/MWh to £261/MWh.
A series of price increase have been seen in the offshore tidal scene with offshore wind price cap increasing from £44/MWh to £73/MWh and floating wind strike price increasing from £116/MWh to £176/MWh.
UK aims to deliver 50GW offshore wind by 2030
In the forthcoming Allocation Round 6, offshore wind will be given a separate funding pot. The healthy competition amongst the high number of projects will contribute to UK’s ambition of delivering up to 50GW offshore wind and 5GW floating offshore wind by 2030.
This is a vital part of our plan to bringing bills down for families
UK Energy Secretary Claire Coutinho said, UK is home to the world’s five largest offshore wind farms projects. Today we have started the process of our latest Contracts for Difference (CfD) auction for renewables, opening in March next year. We recognize that there have been global challenges in this sector and our new annual auction allows us to reflect this. This is a vital part of our plan to have enough homegrown clean energy, bringing bills down for families and strengthening our energy independence.
It ensures the scheme remains competitive for renewable developers
Energy Security and Net Zero Minister Graham Stuart said, This critical update to the scheme’s design provides further clarity and confidence to the offshore wind sector and ensures the scheme remains competitive for renewable developers investing in new low carbon technologies. I look forward to securing another year of successful contracts in 2024, creating skilled jobs, reducing emissions and delivering maximum amounts of reliable clean energy for the British public.
The government will not only review the projects from cost efficiency aspects but also from social aspects, such as the contribution to employment and communities.
OFFSHORE ENERGY
