No bids for offshore wind projects in UK auction

General – UK Auction

BBC News announced that no new offshore wind project contracts have been bought by developers at a key government auction, dealing a significant blow to the UK’s renewable power strategy.

Results showed no bids for new offshore wind farms, but there were deals for solar, tidal and onshore wind projects.

Although the industry has warned the UK government ahead of the round regarding the soaring costs faced by offshore wind developers, it appears to have been in vain.

Firms have argued the price set for electricity generated was too low to make offshore wind projects viable.

The government said a ‘global rise’ in inflation impacting supply chains had ‘presented challenges for projects’.

It said while offshore and floating offshore wind projects did not feature on the agreed deals list, the outcome was ‘in line with similar results in countries including Germany and Spain’.

The Department for Energy Security and Net Zero said significant numbers of solar power, onshore wind, tidal energy schemes, and for the first time, geothermal projects, which use heat from the ground to generate power, had been awarded funding.

But the lack of offshore wind will be a blow to the pledge to deliver 50 gigawatts (GW) of offshore wind by 2030 compared with 14GW today.

Original Source: https://ocean-energyresources.com/2023/09/08/no-bids-for-offshore-wind-projects-in-uk-auction/