The Starmer administration in the UK has confirmed that it is bringing forward the UK’s next auction for clean energy, Allocation Round 8 (AR8), an auction in which large numbers of offshore wind developers are expected to compete
Energy Secretary Ed Miliband announced the decision as part of a raft of measures designed to go further and faster in the pursuit of national energy security, as a response to events in the Middle East.
The Energy Secretary said, “We intend to bring forward the government’s next annual renewables auction to July, inviting renewables companies to invest in UK energy. The most recent round was the biggest ever, and alongside the previous auction, we have confirmed enough clean power to power the equivalent of 23M homes.” AR7, the previous auction round, delivered the single biggest procurement of offshore wind that Europe has seen.
The Energy Secretary said, “Global events demonstrate there is not a moment to waste in our drive for clean power because there can be no energy security while we are so dependent on fossil fuels.
“We are bringing forward the next renewables auction just months after our most successful ever… doing everything with one purpose, fighting the corner of the British people by taking back control of our energy.”
Responding, RenewableUK said it welcomed the decision to bring forward AR8. RenewableUK chief executive Tara Singh said, “Bringing forward the next Contracts for Difference auction is an important step towards strengthening Britain’s energy security.
“Recent global events have shown, yet again, how exposed we remain to shocks in international fossil-fuel markets, and the best way to reduce that vulnerability is to generate more of our own electricity here in the UK, at the stable prices wind and solar offer.
“There could be as many as 18 offshore windfarms potentially competing for contracts, alongside new onshore wind and solar sites. A high level of competition between projects is exactly what delivers the best value for billpayers. To secure it, developers need clear and decisive action on grid connection dates, charges and delivery timelines, so that projects can bid with confidence.”
Energy UK chief executive Dhara Vyas said, “Bringing forward the next Contracts for Difference auction round to July is a positive move that will maintain the momentum to a more secure, cleaner energy system and sends a clear signal to investors and the energy sector.
“Energy UK has long called for a return to regular auction rounds that the sector can rely on in order to maximise investment, support supply chains, and create good jobs.”
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