Lucy Dolton, Renewable Generation Lead at Cornwall Insight:
“Today’s AR7 results of 8.2GW offshore wind and 192.5MW floating offshore wind, against an overall eligible pipeline of 23.1GW and 458MW respectively, should be heralded as a success for offshore wind, sending a strong positive signal to the market.
“The government’s decision to increase the offshore wind budget beyond the initial £900mn to £1.8bn demonstrates real commitment to deploying new-build generation and keeping us on track for the transition to a secure, affordable, and low carbon electricity system.
“Strike prices in this round reflect the upward pressure on build costs we’ve seen from commodity price rises and supply chain constraints. Despite this, the level of participation in the auction versus the outturn capacity demonstrates that the UK remains an attractive place to invest, with strong competition for CfD contracts.
“With Pots 1 and 2 results due in early February, there’s still more capacity to come from technologies like onshore wind and solar PV, both of which have healthy pipelines. This diversity strengthens the UK’s clean energy future and keeps us moving toward a resilient, low-carbon.”
Getting ready for AR8? Find out more about our CfD Support Service (GB), designed for applicants of the Contracts for Difference scheme, providing all the need-to-know information and analysis on the auction process.
