Plans to auction up to 12 GW of contracts for renewable power generation have been welcomed by industry in the UK
Commenting on an announcement by the Energy Minister Kwasi Kwarteng of the details of the next auctions for contracts for difference (CfD) in 2021, RenewableUK chief executive Hugh McNeal said, “Next year’s renewable power auctions can unlock more than £20Bn (US$27Bn) of investment in the economy and secure an unprecedented amount of low cost, clean electricity for consumers using the full range of renewable technologies we have available.
“The new structure for clean power auctions, with a dedicated pot for offshore wind, can deliver the scale needed for the UK’s 40 GW by 2030 target as well as providing support for innovative marine and floating wind technologies.
“The industry is investing to develop a vibrant, competitive UK supply chain. We look forward to working with government on the details of how reforms to Supply Chain Plans can support this.
“The Prime Minister’s 10 Point Plan set important headline ambitions for putting renewables at the heart of a green recovery and today’s announcement provides the details to unlock the investment needed to make that a reality.”
On 6 October 2020, the government announced an ambition to deliver 1 GW of floating offshore wind by 2030, as part of the wider ambition of reaching 40GW of offshore wind by 2030.
Taking account of responses from a recent consultation, the government will proceed with defining floating offshore wind as a distinct technology within the CfD, with a different administrative strike price, from fixed bottom offshore wind. Floating offshore wind will compete against other less established technologies in Pot 2.
To be considered a floating offshore wind project, (in addition to meeting the existing requirements for offshore wind) all turbines will need to be floating and situated in offshore water depths of at least 45 m. If an offshore substation is required, it can be either floating or fixed bottom.