UK continues offshore wind energy ambition

The UK government announced this week a further subsidy auction for offshore wind and other renewable technologies in the spring of 2019.


Minister for Energy and Industry, Richard Harrington, announced that renewable energy projects will be able to compete for contracts worth up to £557m. The news was swiftly followed with the publishing of the UK Government’s Clean Growth Strategy. It confirmed 10 GW of new offshore wind capacity, with the opportunity for additional deployment “if this is cost effective,” built in the 2020s.

The news comes on the back of the last Contract for Differences (CfD) auction results in September which saw dramatic price reductions in offshore wind averaging 47%.

“Offshore wind has more than proven its cost-competitiveness in the UK. We welcome the announcement of another CfD round in 2019,” said WindEurope CEO Giles Dickson. “It is also promising that the UK has committed to deploy ambitious volumes of offshore wind into the 2020s. It sends the right signals to the industry. The UK Government clearly recognises that wind energy can deliver low-carbon jobs and growth. The wind industry looks forward to further clarification on the auction timetable post-2020 to deliver these volumes. Visibility on the auction timetable and the volumes or budgets behind each auction is crucial to enable the industry to plan ahead and reduce costs.