The UK government on Thursday raised the maximum auction prices for offshore wind and other renewables projects.
For the Contracts for Difference (CfD) round in 2024, the maximum rates for offshore wind will increase by 66% to £73 per megawatt-hour. This ensures that renewable energy projects receive a guaranteed price from the government for the electricity generated.
The maximum strike price for floating offshore wind projects will rise by 52%, from £116 per megawatt-hour to £176 per megawatt-hour ahead of Allocation Round 6 (AR6) next year.
‘This will help ensure projects are sustainably priced and economically viable to compete in AR6,’ the government said.
Projects could also obtain more money from auctions in 2025 if they reduce carbon emissions in their supply chains and demonstrate a positive social impact on communities, the government announced.
With the new changes, the government hopes to ‘attract continued investment in the UK and further cement the country’s position as a global leader in clean energy.’
The UK targets up to 50 gigawatts of offshore wind by 2030, including up to 5 GW of floating offshore wind. As of the first quarter of the year, the share of renewables in the country’s electricity generation reached 48%.
The government also increased the maximum bid prices for other technologies.
Prices increased for geothermal projects by 32% to £157 megawatt-hours, solar by 30% to £61 megawatt-hours, and tidal wave power by 29% to £261 megawatt-hours.
