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The time is now for Scotland’s offshore wind ambitions, says industry body

27/02/24 | News release
Offshore Wind - credit Natural Power

Ahead of funding for the next Contracts for Difference (CfD) auction to be announced next month, industry body Scottish Renewables has called on the UK Government to act now if Scotland is to unlock its world class pipeline of offshore wind projects in line with its climate ambitions.

The budget for CfD Allocation Round Six (AR6) will determine whether Scotland can enable the level of deployment needed for the UK to meet its net-zero targets and confirm its reputation as a world-leader in renewable energy.

In a letter to Claire Coutinho MP, Secretary of State for Energy Security and Net-Zero, Scottish Renewables has urged the UK Government to maximise the number of offshore wind projects capable of being successful in winning contracts through this year’s CfD allocation round.

Following the failure of last year’s CfD auction to attract any bids from offshore wind developers the renewable energy industry believes that at least 10GW of offshore wind projects need to be successful in AR6 for the UK to remain on track for its 2030 target.

Scotland is poised to power the UK’s future energy needs and boost the economy with a world leading pipeline of offshore wind projects including the 30GW ScotWind leasing round and the Innovation and Targeted Oil & Gas (INTOG) 5GW leasing round.

To capitalise on the potential from all renewable technologies, Scottish Renewables recommends the UK Government delivers the following priorities in AR6: 

  • Set an auction budget which maximises the capacity procured across all technologies.
  • Adjust reference prices and load factors for all technologies. Accurate reference prices and load factors are critical to maximising the capacity that the auction budget can procure.
  • Introduce a ringfenced budget for floating offshore wind.
  • Increase the budget ringfenced for tidal stream projects.

Claire Mack, Chief Executive of Scottish Renewables, said:

“Now is the time to incentivise investment in Scotland’s offshore wind sector, bolster domestic supply chains and supercharge the world class offshore wind pipeline that is set to power our net-zero future.

“The UK Government faces a choice between further energy insecurity or future economic prosperity. With the UK remaining one of the most gas dependent economies in Europe, underperformance in AR6 will leave UK consumers less energy secure and more exposed to high, volatile gas prices. 

“It is therefore essential that the UK Government provides a budget for AR6 that aligns with Scotland’s renewable energy ambitions and maximises the number of projects across all technologies that are successful in winning contracts.

“Scottish Renewables looks forward to continuing to work closely with the UK and Scottish Governments to drive the collaboration that will achieve our bold decarbonisation targets and deliver cheaper, cleaner power for consumers.”

Notes

  • Scottish Renewables’ Letter to the Secretary of the State for energy security and net-zero on maximising Contracts for Difference Allocation Round 6, is available here.
  • A new report published by RenewableUK shows that a record 14 offshore wind projects worth up to 10.3GW are eligible to bid into this year’s CfD auction. 
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