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Boost for offshore wind in Scotland

Boost for offshore wind in Scotland

Following an extensive review, the UK Government has raised the maximum price offshore wind and other renewables projects can receive in the next Contracts for Difference (CfD) auction. 

Responding, Claire Mack, Chief Executive of Scottish Renewables, said:

“Scottish Renewables has repeatedly warned of the cost pressures and increased challenges facing our industry so we’re pleased the UK Government has responded by delivering administrative strike prices which should go a long way to restoring investor confidence in the Contracts for Difference scheme as a viable route to market for offshore wind.

“Today’s announcement is important because in addition to the social, environmental and economic benefits that renewable energy projects can offer, bringing forward more of these developments will not only deliver affordable electricity and savings to bill-payers but will improve energy security and reduce consumer exposure to high, volatile gas prices.

“Make no mistake renewable energy is the cheapest way of generating electricity. A diverse technology mix will be crucial for meeting our net-zero targets so the increase in administrative strike prices for renewable energy technologies other than offshore wind is also welcome.

“Following the disappointing result of Auction Round 5, Scottish Renewables urged the UK Government to provide offshore wind with a separate funding pot in Allocation Round 6 to reflect the high number of eligible projects, so we are pleased that Government has listened to our calls. This separate pot should be retained for future auction rounds to secure the delivery of the vast ScotWind pipeline.

“However, whilst welcome, today’s announcement will not by itself ensure the success of this allocation round of the Contracts for Difference scheme. It is therefore essential that the UK Government provides a budget for Allocation Round 6 that aligns with Scotland’s renewable energy ambitions by maximising the number of projects successful in winning contracts to deliver clean power for consumers.”

Read the latest issue of the OGV Energy magazine HERE

Published: 16-11-2023

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