- The UK government has said the maximum strike price for offshore wind will be GBP 73 (USD 91/EUR 84) per MWh.
- The maximum support for geothermal, solar and tidal technologies will also increase.
The UK government has increased the maximum price for offshore wind projects by 66% in its upcoming Contracts for Difference (CfD) auction. This follows the failure to contract any offshore wind project in its latest round. The government said that for the sixth CfD allocation round, which will open in March next year, the maximum strike price for offshore wind will be GBP 73 (USD 91/EUR 84) per MWh.
The new price represents a 66% increase from GBP 44 per MWh in the fifth round, which proved unviable for projects amid rising costs in the industry. The prices for floating offshore wind projects will increase to GBP 176 per MWh from GBP 116 per MWh. The maximum support for other technologies will also go up – for geothermal by 32% to GBP 157, for solar by 30% to GBP 61 and for tidal by 29% to GBP 261 per MWh.
The government also said there will be a separate funding pot for offshore wind in the sixth tender round in recognition of the high number of projects ready to participate, helping the UK progress towards its 50 GW by 2030 target. Also, the Energy Security Secretary, Claire Coutinho, said, “We recognise that there have been global challenges in this sector. Our new annual auction allows us to reflect this.” According to RenewableUK’s chief executive, Dan McGrail, the government could “attract a record level of private investment in offshore wind projects next year, with at least ten projects likely to be eligible, able to power 8.5 million homes each year and reduce the UK’s need for gas by 39%.”