THE UK Government has announced an increase in the maximum price for offshore wind projects in the upcoming Contracts for Difference (CfD) auction. Claire Mack, Chief Executive of Scottish Renewables, responded to the news, stating:
“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.”
Mack emphasised the broader benefits of renewable energy projects, including affordability, energy security, and reduced exposure to volatile gas prices. She added:
“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.”
Underlining the cost-effectiveness of renewable energy, Mack welcomed the increase in administrative strike prices for renewable energy technologies beyond offshore wind. She noted:
“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.”
Addressing concerns from Allocation Round 5, Mack appreciated the UK Government’s response to Scottish Renewables’ call for a separate funding pot for offshore wind in Allocation Round 6. She urged the retention of this separate pot in future auction rounds to support the delivery of the vast ScotWind pipeline:
“Following the disappointing result of Allocation 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.”
While expressing satisfaction with the announcement, Mack emphasised that its success would hinge on the UK Government’s budget alignment for Allocation Round 6 with Scotland’s renewable energy ambitions. She highlighted the importance of ensuring a sufficient budget to maximise the success of projects securing contracts for delivering clean power to consumers.
