The UK government could secure a record number of new offshore windfarms, and a record amount of new capacity, in this year’s auction for contracts for clean power
In a potentially huge boost to the UK’s energy security, the government has the potential to double the country’s offshore wind capacity in this year’s auction alone.
RenewableUK’s latest ‘EnergyPulse Insights’ offshore wind report reveals that 14 windfarms are already eligible to bid into this year’s Contract for Difference (CfD) auction, Allocation Round 6 (AR6), providing nearly 10.3 GW of new capacity. The previous records were set in 2022 when 8.5 GW was eligible across seven projects.
The 14 UK offshore wind projects which are currently eligible to bid into AR6 are: Norfolk Vanguard West and Norfolk Vanguard East (2,760 MW); Hornsea Four (2,600 MW; Awel y Môr (1,100 MW); East Anglia Two (900 MW); East Anglia ONE North (800 MW); Hornsea Three (753.1 MW); Seagreen 1A (500 MW); East Anglia Three (318 MW); Inch Cape (270 MW); Pentland (floating project) (100 MW); Erebus (floating project) (100 MW); Blyth 2 (floating project) (58 MW); and Forthwind (test and demonstration site) (8 MW).
In addition to this, a further 4.7 GW of new offshore wind capacity out of 8.7 GW in the planning system could become eligible before applications open for AR6 at the end of March. If these projects were to receive consent from the government, 14.9 GW of offshore wind capacity would be eligible for this year’s auction. The report notes that being eligible does not mean that projects will choose to bid, but they have the potential to do so.
To put this 14.9 GW of potential new capacity into context, the UK currently has 14.7 GW of fully operational offshore wind which generates 14% of the UK’s entire electricity needs.
The report also shows that a further 5.2 GW is already under construction in UK waters, and it forecasts that nearly 45 GW could be fully operational by the end of 2030.
The government is due to set out the overall budget and parameters for this summer’s auction in March and RenewableUK is calling for Ministers to aim high to maximise the amount of capacity we can secure. It says offshore wind is one of the UK’s cheapest sources of new power and is vital in boosting our energy security and independence from expensive imported power.
The report also shows that global operational offshore wind capacity has reached more than 70.0 GW (70.2 GW), up from 62.3 GW at this time last year, a 12.5% increase in 12 months. The top countries in terms of installed capacity are China (34.7 GW), the UK (14.7 GW) and Germany (8.3 GW).
The report includes a summary of global offshore wind activity in 2023, in which 7.6 GW of capacity went fully operational globally, while over 21 GW reached a final investment decision. 68% of capacity which went fully operational in 2023 was in two markets – China (4.1 GW) and the UK (1.1 GW).
The global total pipeline of projects in all stages of development (operational, under construction, consented, in the planning system or in early development) now stands at 1,078 GW across 1,461 projects in 41 countries; China is top with 195.5 GW, the UK second at 99.5 GW and Sweden third with 85 GW.
The report forecasts that total global capacity could reach more than 340 GW by the end of 2030, an almost fivefold increase from today, with 46% of this capacity in Chinese waters.
RenewableUK chief executive Dan McGrail said, “We are urging Ministers to be ambitious when they set out the auction budget and parameters next month. If this is done in the right way, we can secure billions in private investment, driving the growth of the UK’s offshore wind supply chain and new jobs in the sector.
“The report also shows that offshore wind is ramping up worldwide at an astonishing pace and that despite fierce global competition, the UK continues to be a world leader in this vital technology. In this year’s auction, we have the potential to prove again that Britain is one of the best places to invest in new offshore wind projects.”
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