Offshore wind developers with consented projects totalling over 8GW are planning bids in the UK's latest Contract for Difference auction round, which opens tomorrow.
Available capacity at the auction is limited to 6GW and so competition among developers to secure 15-year price support will be fierce.
Developers will compete in the so-called Pot 2 less established technologies of the auction against remote island wind and wave and tidal projects, among others.
How low those prices are and when those projects are planned to be commissioned will determine how much capacity is awarded in this auction
Developers have until 18 June to enter their projects into the CfD3 auction.
They are allowed to bid in four different variations of each project, but each variation must be bid at a different strike price and cannot be bigger than the base bid.
Projects eligible for inclusion off Scotland are Red Rock's 700MW Inch Cape and SSE's 1.5GW Seagreen Phase One.
Off the coast of England, ScottishPower Renewables' 1.2GW East Anglia Three, Innogy's 1.4GW Sofia and three SSE/Equinor sites totalling 3.6GW in the Dogger Bank are all in the chase.
Unsuccessful bidders will likely re-submit projects into the next auction round in 2021.
“There is still no clear route to secure large enough PPA deals to go merchant. BEIS has committed to auctions until 2030, which means developers can resubmit projects in a couple of years basing them on new technology that will make them even more competitive,” Frias said.
ScottishPower chief executive Keith Anderson said: “Offshore wind works. British innovation has driven down costs and supported the development of a diverse supply chain across the UK."
We’re currently building the first and biggest project to be delivered under the government’s supply chain plan and it has the highest UK content of all, above the current industry average of 50%, ensuring the benefits are felt across the country.
Now with the Sector Deal in place investing £250m into the UK supply chain this latest auction offers a huge opportunity to businesses across the UK.
Source;renews
