Chancellor Allocates Record £800m for Offshore Wind, Yet Industry Warns of Missed Opportunities
Despite the UK government’s efforts to bolster the offshore wind sector with a record £800 million pledge in this year’s budget, concerns loom over achieving the 2030 target of 50GW of offshore wind. Last year’s auction round fell short, failing to attract bids due to perceived low pricing of contracts.
Budget Allocations and Industry Response
The chancellor’s commitment of £800 million for the offshore wind auction marks a fourfold increase from the previous year, demonstrating a push to revitalize the maritime wind sector. However, industry experts caution that the funding may only support the development of 3-5GW of new offshore wind due to rising costs influenced by inflation and market competition.
Renewed Efforts to Reach Targets
Renewable UK, the leading not-for-profit renewable energy trade association, acknowledges the positive uplift in the clean energy budget but expresses concern about missed opportunities in maximizing offshore wind capacity. The industry emphasizes the importance of swiftly building the 10GW of “eligible” offshore wind projects that already have planning permissions, crucial for meeting the 2030 target.
Challenges and Future Projections
Dan McGrail, CEO of Renewable UK, notes that while the increased budget is welcome, the opportunity to accelerate offshore wind capacity has been overlooked. With 15GW already installed and an additional 14GW in the pipeline, the UK now faces the challenge of making up for the setbacks from the previous auction.
Energy UK, another industry body, raises concerns about the feasibility of acquiring an unrealistic 16GW of offshore wind in the next auction round to meet the 50GW target by 2030. Despite the increased funding, the industry emphasizes the need for strategic planning and further support to ensure long-term clean and secure energy goals are met.
Source：news.sky.com
