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25 days ago

UK PLANS TO BOOST OFFSHORE WIND PROJECTS WITH NEW CFD REFORMS!

UK government has launched a consultation on proposed changes to this year’s AR7 Contracts for Difference (CfD) auction, aimed at speeding up the deployment of offshore wind projects. These reforms are essential in helping the UK achieve its clean energy goals by 2030, reinforcing the country’s commitment to expanding renewable energy sources.

Among the suggested reforms are a ‘relaxation’ of planning consent requirements for fixed bottom offshore wind projects, revision of how offshore wind budgets are determined and disclosed, ensuring investment is allocated more effectively, and an extensions of contract terms beyond the current 15 years, enhancing cost effectiveness for renewable energy projects.

The CfD is the UK’s main tool for promoting low-carbon electricity generation, shielding developers from market volatility and encouraging investments in renewables.
Eligible developers can bid for CfD contract through a sealed auction process, competing for government-backed support.

Six allocation rounds have already taken place, allowing various funding to be secured. The recent AR6 set a record for 128 renewable energy contracts being awarded, with a combined capacity of 9.6GW.

The proposals will also cover additional measures, such as allowing repowering of onshore wind farms, expanding phased CfDs to floating offshore wind, and extending the target commissioning window for solar projects from three to six months.

This consultation is part of the government’s broader push to expand clean energy and boost economic growth.
As part of these efforts, officials have also introduced the Clean Industry Bonus, an initiative designed to encourage offshore wind developers to adopt cleaner supply chains while creating jobs in industrial regions.

Energy Secretary, Ed Miliband said: “Last year, we celebrated delivering the most successful auction round in history – now we want to go even further. British families and businesses are bearing the cost of the reliance on petrostates and dictators who set the price of gas on the global market. Our bold new reforms will give developers the certainty they need to build clean energy in the UK, supporting our mission to become a clean energy superpower and bring down bills for good.”

The consultation on CfD reforms remains open for public input until March 21, with the government expected to issue a response ahead of the AR7 auction round.

For further information or opportunities in the offshore wind sector, please contact our team on hello@lsprenewables.com

Sources:

ReNews

GovUK

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