The latest clean energy auction has put the wind back in the government’s sails, with offshore projects making a strong comeback for funding in this year’s round.
It’s a reversal of fortunes, you might say; ministers have welcomed the strong presence for offshore – and even onshore –wind following “disappointing results” in the 2023 auction, which saw zero offshore wind farms agreed.
All told, it was – according to the Department of Energy Security & Net Zero (DESNZ) – a record-breaking year, with 131 infrastructure projects bidding for funding; enough, we are told, to power 11m homes. Along with wind energy, projects also seek to harness solar and tidal energy.
The results of this round come after the government last month moved to increase the budget by 50% – a record funding uplift and seven times bigger than the previous round’s pot.
Offshore wind saw nine contracts awarded, including securing both what will be Europe’s largest and second largest windfarm projects, Hornsea 3 and Hornsea 4 off the Yorkshire coast.
Ed Miliband, the energy secretary, said: “We inherited a broken energy policy, including last year’s disastrous auction round which gave us no successful offshore wind projects.
“Today we have now achieved a record-setting round for enough renewable power for 11m homes; essential to give energy security to families across the country. It is another significant step forward in our mission for clean power by 2030 – bringing Britain energy independence and lower bills for good.
“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.
As we accelerate our plan for clean power by 2030 the government will work with the industry on how we can build on this success to ensure we can go even further and faster to deliver the power we need.”
Projects in this latest auction include:
- The largest offshore windfarm project in Europe – the Hornsea 3 project off the Yorkshire coast
- The largest floating offshore wind project in the world to reach market, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity
- Six new tidal projects, building on the UK’s world leading position, with just under half of the world’s operational tidal stream capacity being situated in UK waters
- A combined 115 solar and onshore wind projects
Energy Minister Michael Shanks said: “Securing new wind turbines, solar panels and cutting-edge technologies such as tidal will boost growth, catalyse investment and support good jobs across Great Britain.
“We’ve done this while ensuring value for money for bill-payers, delivering the biggest auction round to date at competitive prices, helping turbocharge our mission for energy independence and clean power by 2030.”
Neil McDermott, chief executive Low Carbon Contracts Company, said: “We are delighted with the outcome of Allocation Round 6 (AR6), which has awarded contracts to the largest number of projects ever.
“The results of AR6 increase our total renewable electricity CfD portfolio to 39GW and 372 contracts. CfDs (Contracts for Difference) support technologies including offshore and onshore wind, solar, as well as emerging technologies of floating wind, tidal and geothermal.
“The success of this allocation round not only boosts our ability to decarbonise the economy and enhance energy security, but also unlocks exciting new opportunities for innovation and growth. We look forward to working closely with our new generators to deliver these projects, accelerating the delivery of net zero and a sustainable, low-carbon future.”
Image credit: fokke baarssen/Shutterstock
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