Commenting on the revised auction strike prices for offshore wind in renewables Auction Round 6 (AR6), Simon Virley CB FEI, Vice Chair and Head of Energy and Natural Resources at KPMG UK said:
“Offshore wind will be the backbone of the Net Zero power system we are trying to build in the UK. The higher auction strike prices and separate funding pot announced by the Government today reflect recent pressures faced by the offshore wind sector globally, including higher interest rates and supply chain inflation. If we are to build more offshore wind capacity in line with the Government’s 50GW target, then we need to keep attracting the available capital to the UK. For this reason, many developers will welcome this move and we should see significantly increased interest in the next auction round.
“Recent analysis by the National Infrastructure Commission suggests that households could pay £1000 less for their energy bills over the medium term as we move to a Net Zero power system. So, paying slightly higher prices now will pay off in terms of lower energy bills and greater energy security over the medium term, as well as creating jobs and investment here in the UK.”
