Offshore Energies UK (OEUK) has warned that the government’s Clean Power 2030 target could be at risk if at least 8,400 megawatts (MW) of new offshore wind capacity is not approved in the latest round of renewable energy auctions.
The trade body said the UK must secure record levels of offshore wind capacity in Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme, which opened on Wednesday, to compensate for limited progress in previous rounds. Since Allocation Round 4, only one fixed-bottom and one floating wind project—together totalling 1.3 gigawatts (GW)—have secured contracts, OEUK noted.
“We will be able to significantly increase wind-generated electricity by using the new generation of floating offshore turbines as well as fixed ones,” said Thibaut Cheret, wind energy manager at OEUK.
The group also cautioned that further delays could result from the exclusion of floating wind projects that have yet to receive full planning consent, potentially limiting the pool of eligible projects. OEUK highlighted floating wind’s potential for higher electricity yields and its compatibility with UK supply chains, alongside generally lower levels of public opposition compared to fixed-bottom developments.
“Floating turbines can produce 25% more electricity and in future auction rounds the government should allow the same consenting flexibility to floating wind projects as it has done for fixed wind,” Cheret said.
To encourage greater participation in AR7, the government has raised administrative strike prices by 10% compared to the previous round for both fixed and floating wind. However, Cheret noted that pricing remains a sensitive issue. “The strike price involves a balancing act because it needs to be high enough to support the projects needed for CP2030 at the same time as controlling ultimate costs to consumers,” he added.
OEUK also called for enhanced government backing of the domestic supply chain, including expansion of initiatives such as the Clean Industry Bonus, which provides incentives for offshore wind developers that invest in regions transitioning from oil and gas.
“This initiative will help to support highly skilled jobs such as engineers, electricians and welders across the UK,” said Cheret.
The Clean Power 2030 target is part of the UK’s wider strategy to decarbonise the electricity grid and boost energy security through increased renewable generation.
