Offshore wind ‘back in the game’ after UK auction, but long road ahead to 2030
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PA Consulting renewable energy expert, Alon Carmel, speaks to S&P Global explaining that while offshore wind is gaining momentum again in the UK after a challenging 2023, the journey to meeting ambitious 2030 targets remains steep.
This article notes that offshore wind returned to the fray in the UK’s latest renewables auction after blanking in the last bidding round in 2023. But while nearly 5 GW of projects were awarded contracts Sept. 3, industry participants warned that a substantial gap in the pipeline still exists, with time running out to achieve a quadrupling of installed capacity by 2030.
Analysis by PA Consulting found that 31 GW of UK offshore wind capacity is now operational, under construction or contracted via CFDs. But that still leaves 24 GW uncontracted, with the government's ambitious 2030 goal of at least 55 GW coming ever closer.
“It's a perfect example of how expectations have been reframed,” said Alon Carmel, renewable energy expert at PA Consulting. “It's not so much back on track as back in the game. On track suggests we're on track to reach the targets, which we're very much not.”
“The reset of the prices was so desperately needed to give investors and developers hope that this is going to be a growth sector again,” Carmel said. “For them it matters less whether we get to 50 GW or 55 GW. It's about whether it's really going to start growing again after a shock to the system last year.”
In total, more than 10 GW of offshore wind projects bid in AR6, according to analysis by PA Consulting. That means about 5 GW of offshore wind projects that were eligible did not win contracts.
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