UK Boosts Maximum Prices for Offshore Wind Projects

The adjustments reveal a 66 percent surge for offshore wind projects, soaring from EUR 44/MWh to EUR 73/MWh.

November 17, 2023. By News Bureau

In a significant move to stimulate investment in the clean energy sector, the UK Government has announced a substantial increase in the maximum prices for offshore wind projects in the upcoming Contracts for Difference (CfD) auction.

The adjustments reveal a 66 percent surge for offshore wind projects, soaring from EUR 44/MWh to EUR 73/MWh. Floating offshore wind projects will see a notable 52 percent increase, elevating prices from EUR 116/MWh to EUR 176/MWh. These modifications are a part of the government's commitment to fostering economic viability and competitive pricing for projects in the renewable energy domain.

The Contracts for Difference scheme, which guarantees a set price for electricity generated by renewable energy projects, is at the centre of these alterations. The aim is to ensure that the projects participating in the next CfD auction are not only economically viable but also attract competitive interest from investors.

The decision comes after a thorough review that took into account the global events impacting supply chains. The strategic adjustments are designed to bolster the UK's goal of achieving up to 50 GW of offshore wind by 2030, with a particular emphasis on 5 GW of floating offshore wind.

Commenting on the move, Minister of State for Energy Security and Net Zero, Graham Stuart, stated, "Last year’s Contracts for Difference scheme saw more than 90 clean, home grown energy projects, and today we have shown our ongoing commitment to retaining our global leadership in renewable energy."

Stuart further highlighted the critical update to the scheme's design, providing clarity and confidence to the offshore wind sector. He noted that these adjustments ensure the scheme remains competitive for renewable developers investing in new low-carbon technologies.

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Wind Power

Offshore Wind Projects