Statement and analysis from the Offshore Renewable Energy (ORE) Catapult in response to the UK Government’s announcement on Contracts for Difference Allocation Round 6 (AR6).
Andrew Jamieson, Chief Executive of ORE Catapult, said:
“Today’s announcement represents a positive development for driving the future growth of offshore wind and better reflects the economic reality that the wider energy sector is operating in. Even with these new prices, offshore wind is set to remain one of the cheapest forms of electricity available to us, as well as being the UK’s principal source of low carbon generation.
“It’s also very encouraging to see news of a separate funding pot dedicated to offshore wind and, while we await the full details, this should help to provide clarity as we continue our efforts to support and validate the innovative technical solutions that can help propel the UK towards meeting our ambitious targets for offshore wind capacity. The fact that this comes alongside new incentives for fostering low carbon supply chains is also an important aspect of ensuring the future sustainability of the sector.”
Following today’s news, our Analysis and Insights team has taken a look at some of the potential outcomes in relation to the forthcoming auction round for fixed bottom offshore wind. This initial analysis illustrates the budget, or ‘pot’, that will be required under different assumed scenarios for the announced Administrative Strike Price for the UK to achieve Government targets of 50GW of offshore wind by 2030.