Skip to content
Offshore wind
Go to: press and media

Higher strike prices set stage for more competitive renewables auction

Commenting on the publication by the government of the rise in Administrative Strike Prices (ASPs) for the Contract for Difference Allocation Round 6:

Tim Dixon, Senior Consultant, at Cornwall Insight:

The government’s decision to boost strike prices ahead of next year’s renewables auction is a significant enhancement that will be welcomed by renewables developers, signalling a much-needed shift in policy that acknowledges the harsh realities developers face in today’s challenging economic landscape.

With offshore wind ASPs jumping from £44 to £73 per MWh, along with price increases for other renewable technologies, the stage may now be set for a more competitive auction. The rise in prices will see a greater number of eligible renewable projects able to compete and depending on the budget parameters1, may secure significantly more capacity to help meet the UK’s renewable targets.

However, we must not get ahead of ourselves, the decision to separate offshore wind into its own pot will reduce competition between it and other established renewable technologies. While this is supportive for offshore wind and could stimulate investment, setting appropriate budgets will now be essential to ensuring continued competition, supporting enough capacity across a range of technologies, and delivering good value for consumers.

Further, we know that beyond strike prices, barriers such as supply chain issues persist alongside continued macroeconomic issues, affecting the viability of renewable technologies. The government’s consultation on non-price factors acknowledges these concerns to some extent, but the road to a sustainable energy future is undeniably complex.

There are strong headwinds facing the renewable sector, and while these announcements are a positive step, the government has some very ambitious targets which leave very little room for error.”

Reference:

  1. The budget parameters are due to be set next March
  • Ends

Notes to Editors

For more information, please contact: Verity Sinclair at v.sinclair@cornwall-insight.com

To link to our website, please use: https://www.cornwall-insight.com/

Copyright disclaimer for commercial use of the press releases:

The content of the press release, including but not limited to text, data, images, and graphics, is the sole property of Cornwall Insight and is protected by UK copyright law. Any redistribution or reproduction of part or all of the content in any form for commercial use is prohibited without the prior written consent of Cornwall Insight.

Media Use Exemption:

The information included in this press release may be used by members of the media for news reporting purposes only. Any other commercial use of this information is prohibited without the prior written consent of Cornwall Insight.

All non-media use is prohibited, including redistribution, reproduction, or modification of our content in any form for commercial purposes, and requires prior written consent. Please contact: enquiries@cornwall-insight.com

"With offshore wind ASPs jumping from £44 to £73 per MWh, along with price increases for other renewable technologies, the stage may now be set for a more competitive auction."

Tim Dixon Senior Consultant
wind turbines and solar
Get in Touch to Find Out How We Can Support Your Business

Fill in your details and we will get back to you as soon as possible with more information about our solutions.

Get in Touch