In a boost to the renewable energy sector, the UK Government confirmed a budget to £1.56 billion to the allocation round of contracts. This uplift has resulted in a record-breaking number of contracts awarded. Including 9 offshore wind contracts!
The new offshore projects include Hornsea 3 and Hornsea 4, off the coast of Yorkshire. Respectively, they are set to be Europe’s largest and second-largest wind farms. A substantial increase in clean energy production as well as providing an increase of job availability to the UK market.
Energy Secretary, Ed Miliband, is hailing this successful round of allocations as a ‘significant step forward in the government’s aim of achieving energy independence and lowering bills for good.’
Of the wider pool of green energy projects that were awarded contracts, there will be enough electricity produced to fuel the equivalent of 11 million UK homes.
Some key highlights worth noting, above and beyond offshore.
- This was the largest auction to date.
- 131 renewable projects secured contracts.
- Higher clearing prices – demonstrating a level of recognition of the increased costs faced by developers today.
- Emerging technologies contracts awarded – highlighting the traction in innovation and technological advancements.
Overall, a huge achievement for sure given the last round, September 2023, attracted no bids for offshore wind farms.
Some have, however, highlighted that whilst it’s a great achievement, it ‘still falls short of the pace required to meet ambitious targets’ of net zero by 2030 (Pranav Menon, Aurora Energy Research). This may be so, but it’s a massive step in the right direction and we were delighted to read it!
