A newly released report by RenewableUK unveils a significant opportunity for London to secure a record number of offshore wind farms and capacity in this year's Contracts for Difference auction, potentially doubling the UK's offshore wind capacity and bolstering the nation's energy security.
RenewableUK's latest EnergyPulse Insights Offshore Wind report highlights that 14 wind farms are already eligible to bid into this year's AR6 process, offering nearly 10.3GW of new capacity. This marks a substantial increase from the previous records set in 2022, underscoring the rapid expansion of the offshore wind sector.
Furthermore, the report indicates the potential for an additional 4.7GW of new offshore wind capacity to become eligible before applications open for AR6, potentially resulting in a total of 14.9GW of offshore wind capacity being available for this year's auction.
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To contextualize this growth, the UK currently boasts 14.7GW of fully operational offshore wind capacity, accounting for 14% of the country's electricity needs. Just 1GW of offshore wind can power over a million British homes for a year, demonstrating the substantial impact of this renewable energy source.
The report also forecasts significant future growth, with approximately 45GW of offshore wind capacity expected to be fully operational by the end of 2030, further solidifying the UK's position as a global leader in offshore wind energy.
With London slated to outline the budget and parameters for the upcoming auction, RenewableUK emphasizes the importance of aiming high to maximize the country's capacity. Offshore wind remains one of the UK's most cost-effective sources of new power, essential for enhancing energy security and reducing dependence on imported energy.
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RenewableUK's Chief Executive, Dan McGrail, emphasized the pivotal role of offshore wind in driving economic growth and job creation, urging government ministers to seize the opportunity presented by the auction.
“Our latest EnergyPulse report highlights the enormous opportunity which the Government has to strengthen the UK's energy security, with a record number of new offshore wind farms eligible to bid into this year's clean power auction, and a record amount of new capacity,” McGrail stated.
The report also underscores the global momentum behind offshore wind energy, with operational capacity surpassing 70GW for the first time, led by countries such as China, the UK, and Germany.
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Looking ahead, the report forecasts a substantial increase in global offshore wind capacity, with the potential to exceed 340GW by the end of 2030. McGrail reiterated the UK's position as a world leader in offshore wind technology and emphasized the need for ambitious investment in the sector.
As the UK gears up for the Contracts for Difference auction, the report signals a promising trajectory for offshore wind development, positioning the country at the forefront of clean energy innovation and sustainability.
