Auction outcome a major setback to acceleration of renewables
Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG responds to the outcome of the Contracts for Difference (CfD) auction.
Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG.
Responding to the outcome of the Contracts for Difference (CfD) auction round 5, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG, said:
“The lack of new offshore wind projects in the UK Contracts for Difference (CfD) auctions is a major setback at a critical time when we should be looking to accelerate renewables. After record breaking rounds in previous auctions, this is the first time since CfDs launched in 2015 that there have been no new offshore wind projects announced and will call in to question the Government’s target of 50GW by 2030 and the ambition to get to a Net Zero power system by 2035.
“This outcome reflects the growing inflationary and supply chain pressures affecting the offshore wind sector in recent years, which is making it harder to deliver these projects at the strike prices and other auction parameters set by the Government. The Government will need to review urgently these parameters ahead of Auction Round 6, if it wants the British success story on offshore wind to continue.”
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