A research vessel sails past wind turbines at the Burbo Bank offshore wind farm near New Brighton, Britain, January 23, 2023. REUTERS/Phil Noble/File Photo Acquire license rights
LONDON, Nov 16 (Reuters) - Britain will increase the guaranteed price offered for offshore wind projects in its next renewables auction by 66%, the government said on Thursday, as it looks to push through more projects after its last auction failed. managed to attract any marine energy. wind investment.
Britain, already the world's second-largest offshore wind market after China, is seeking to increase its capacity to 50 gigawatts (GW) by 2030 from around 14 GW today, to help meet its climate targets and boost energy consumption. energy security.
"We recognize that there have been global challenges in this sector and our new annual auction allows us to reflect this," Energy Security Secretary Claire Coutinho said in a statement.
"This is a vital part of our plan to have enough local clean energy, reducing families' bills and strengthening our energy independence," he said.
The offshore wind sector has been hit by rising supply chain costs and interest rates over the past year with some developers. canceling projectswhile the last British auction did not return any offshore wind projects when the results were announced. announced in September and the developer said the price offered was too low.
The government said that despite the absence of offshore wind, the latest auction had managed to support other technologies such as solar, tidal and onshore wind projects capable of generating 3.7 GW, the equivalent of powering about 2 million homes.
Britain's contract for difference (CfD) scheme offers renewable energy developers a guaranteed price for their electricity.
Offshore wind projects will be offered a strike price of ยฃ73 ($90.61) per megawatt hour (MWh), up from ยฃ44 per MWh offered in the September auction, while floating wind projects will be offered a strike price of ยฃ73 ($90.61) per megawatt hour (MWh), up from ยฃ44 per MWh offered in the September auction. whose technology is at an earlier stage of development, will be offered a strike price of ยฃ73 ($90.61) per megawatt hour (MWh). It offered 176 pounds per MWh compared to 116 pounds in the previous auction.
The government said the auction would open in March next year.
Project developers welcomed the changes and said they expect more details about the auction.
โThe true test of that ambition will come when the overall budget is set for the next round of auctions next year. But, without a doubt, this is a step in the right direction,โ Keith Anderson, CEO of Iberdrola. (OIE.MC) ScottishPower said in an emailed statement.
($1 = 0.8056 pounds)
Reporting by Susanna Twidale Editing by Marguerita Choy
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