In what many have deemed a disaster, the UK government’s latest auction for renewable power – an annual attempt to incentivise private sector investment in a range of power sources – has failed to bring forward any new offshore wind projects. Consequently, the government’s own target of achieving 50 gigawatts of offshore wind capacity by 2030 is hanging by a thread, and investor confidence has hit a new low.
The UK’s rollout of offshore wind has been one of the few sustained successes the government could turn to in recent years. Supported by the Contracts for Difference (CfD) scheme – the shining star of the government’s low-carbon policy suite – the price of offshore wind has consistently fallen further than expected in each round of auctions.
