The UK government is trying to pave the way for more offshore wind projects, and today launched a consultation on proposed reforms for this year’s AR7 Contracts for Difference (CfD) auction.
The UK is already home to the world’s three largest operational offshore wind farm projects, but must secure more to deliver clean energy by 2030.
The proposed reforms include relaxing eligibility criteria in planning consent for fixed-bottom offshore wind, helping to speed up new developments.
The government also wants to change the way offshore wind budgets are set and published, allowing funding to be invested more efficiently.
In addition, the government is proposing to increase the CfD contract term beyond the current 15 years, in a bid to make renewables contracts more cost-effective.
The CfD scheme is the government’s main mechanism for supporting low-carbon electricity generation, incentivising investment in renewable energy by protecting developers from volatile wholesale prices.
Renewable energy developers who meet the eligibility requirements can apply for a CfD by submitting a sealed bid form.
To date, there have been six auctions or allocation rounds which have seen a range of different renewable technologies competing for a contract.
Last year’s AR6 round yielded a record 128 renewable energy projects with 9.6GW of capacity, enough to power around 11 million homes.
Today’s reforms set out plans to secure the additional offshore wind the UK needs at a good price, offering value for money to UK taxpayers.
The UK already has 30.7GW of offshore wind installed or committed, with a further 7.2GW of capacity licensed, against a target capacity range of 43-50GW needed for clean energy by 2030.
According to the government, the CfD reforms will enable the UK to go further and faster to secure its position as a clean energy superpower.
Energy Secretary Ed Miliband said: “Last year, we celebrated the delivery of the most successful auction round in history – now we want to go even further.
“British families and businesses are bearing the cost of dependence on petro-states and dictators who set the price of gas in the global market.
“Our bold new reforms will give developers the certainty they need to generate clean energy in the UK, supporting our mission to become a clean energy superpower and lower bills for good.”
The proposals are the latest actions taken by the government to provide clean energy by 2030 and support growth.
The government has announced the launch of the Clean Industry Bonus, which incentivises offshore wind developers to invest in cleaner supply chains and create jobs in industrial communities.
The consultation on the reforms to the CfD scheme is open for four weeks until 21 March, with a response from the government expected before the round AR7.
