Britain’s next offshore wind auction must deliver a record-breaking 6 gigawatts (GW) of new capacity to remain on course for its 2030 clean energy targets, Siemens Energy told Reuters.
The upcoming Allocation Round 7 (AR7) will be a critical test of the UK government’s ambition to expand offshore wind capacity to between 43GW and 50GW by the end of the decade, up from around 15GW currently installed.
“To keep on track with [clean power 2030] targets, we estimate AR7 will need to clear a record 6GW of offshore wind capacity,” said Darren Davidson, vice president of Siemens Energy UK & Ireland.
The largest amount awarded in a UK auction to date was 5.46GW in Allocation Round 3 (AR3) in 2019. Last year’s round (AR6) delivered just over 5GW, supported by £1.5 billion in funding.
Davidson made the comments during a visit to Siemens Gamesa’s blade manufacturing facility in Hull. The plant, which opened in 2016, has expanded significantly and now employs over 1,400 people. Over the past year, it has more than doubled its output capacity.
“The last five years have really proven that when we’ve got that visible pipeline of projects it allows us a greater ability to invest,” Davidson said.
The Hull site is currently manufacturing 108-metre blades for 100 turbines at RWE’s Sofia offshore wind project and is scheduled to begin production for Scottish Power’s East Anglia Three project this summer.
Siemens Gamesa, a subsidiary of Siemens Energy, has installed 10GW of offshore wind turbines around the UK’s coastline to date.
Industry analysts and developers are watching AR7 closely amid rising construction and financing costs that have challenged project viability in recent years. A stronger auction result is viewed as essential to keeping the UK’s offshore wind strategy on track.
