UK Renewable Auction Secures 9.6 GW in Clean Energy Projects
The UK government’s latest auction secured 9.6 GW across 131 renewable projects, including record solar growth and Europe’s largest offshore wind farms, powering 11 million homes.
September 05, 2024. By EI News Network
As per media reports, the new contracts include nine offshore wind farms, such as the Hornsea 3 and Hornsea 4 projects off the Yorkshire coast, which are set to become Europe’s largest and second-largest wind farms. Additionally, the auction saw 115 new solar and onshore wind projects approved, surpassing the total number of projects in the last auction round.
According to the Department for Energy Security and Net Zero, these clean energy initiatives will generate enough electricity to power around 11 million homes in the UK. Energy Security and Net Zero Secretary Ed Miliband welcomed the auction results, stating they have revitalized the offshore wind sector, which received no new contracts last year.
“This auction is another significant step forward in our mission for clean power by 2030, bringing Britain closer to energy independence and lower bills for good,” said Miliband. He highlighted that this round achieved a record number of solar projects, advanced onshore wind developments, and secured the largest commercial floating offshore wind project globally.
The Contracts for Difference (CfD) auction system, launched in 2015, guarantees renewable energy developers a fixed price for the electricity they generate. If the market price falls below this strike price, subsidies cover the difference; if the market price is higher, developers return the surplus to the Government.
Despite the success in project numbers, some concerns were raised over the lower overall capacity secured this year. The Government was criticised for the auction’s outcome, which resulted in only 5 GW of offshore wind capacity, compared to 7 GW in 2022. Greenpeace UK political campaigner Ami McCarthy called for a much larger auction next year and increased investments in grid connections, planning, and storage solutions to meet the UK's clean energy targets.
The auction results, however, marked a turnaround for offshore wind projects, particularly after no contracts were awarded in the previous round. The resurgence is attributed to strategic adjustments, including the formation of Great British Energy, a state-owned firm targeting EUR 8.3 billion in funding for renewable projects.
Among the new projects, the world’s largest floating offshore wind project, Green Volt, and six tidal projects were included. ScottishPower, for instance, secured 1.1 GW of offshore wind capacity for its East Anglia Two and East Anglia Three projects, capable of powering over a million homes.
Keith Anderson, CEO of ScottishPower, emphasised that expanding clean energy infrastructure is crucial for reducing reliance on fossil fuels and stabilizing consumer energy costs. “The success of this auction demonstrates the effectiveness of this investment mechanism, which can help make Britain a clean energy global superpower,” Anderson said.
With these new projects, the UK aims to accelerate its transition to renewable energy, moving closer to its target of 50 GW of offshore wind capacity by 2030.
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