The UK government is anticipated to award approximately 10 gigawatts (GW) of offshore wind projects in the upcoming renewable energy auction next year, according to Helen Bistroem, head of Vattenfall's wind business. The increased volume reflects the government's push to enhance offshore wind capacity to 50 GW by 2030, with the aim of meeting climate goals and reinforcing energy security.
The government's decision to boost the subsidy level offered in the auction by 66%, setting the strike price for offshore wind projects at £73 ($90.61) per megawatt hour (MWh), aims to address concerns raised by offshore wind developers. The September auction had seen no bids, with developers contending that the offered price did not adequately account for escalating industry costs.
Vattenfall recently paused the development of its 1.4 GW Norfolk Boreas offshore wind project, citing a mismatch between rising costs and the agreed electricity sales prices from the UK's fourth renewable auction. Bistroem noted that the decision to pause development prompted positive dialogue with the UK government, leading to a reassessment of funding for offshore wind projects.
While Vattenfall is still considering a potential re-bid for Boreas, it would not be eligible in the next auction after defaulting from its current contract. The company is yet to decide whether to enter the other two Norfolk Cluster projects in the upcoming auction.
The UK remains a key player in the global offshore wind market, ranking second globally after China, and aims to significantly expand its capacity in the coming years to align with its ambitious climate targets.
