A Record UK Offshore Wind Auction

A record hashtag#UK Contracts for Difference hashtag#CFD Auction Result (AR6)......
Over 9.6GW (almost 3X AR5) awarded across 131 projects across 5 technologies: hashtag#onshorewind hashtag#offshorewind hashtag#floatingoffshorewind hashtag#solar hashtag#tidalstream. A big step in the right direction towards hashtag#decarbonising the UK hashtag#electricity system and meeting hashtag#climate targets for 2030.
Key Takeaways
- hashtag#Strikeprice, award capacity and budget went up for most technologies vs. previous rounds
- Offshore Wind was a big winner securing 3.4GW of new and 1.6GW of previously awarded capacity after ´Zero´bids in 2023 AR5. The strike price of £59/MWh for new projects rose by almost 60% over the previous award in 2022 (AR4).
- Strong signal after the recent relaxation on onshore wind projects to the market by hashtag#UKG indicating strong commitment to achieving hashtag#netzero.
- hashtag#Renewables remain the lowest cost source of electricity in the UK energy system, despite the recent drop in gas prices.

See below an interesting chart on how the strike prices and capacity awarded have evolved over the last three years. Let me know what you think.