Leading trade body OEUK has responded to the Government’s announcement of reforms to the Contracts for Difference scheme for Allocation Round 7 for offshore wind.
OEUK’s wind and renewables manager, Thibaut Cheret, commented:
“Encouraging firms and investors to invest in the UK is critical across our energy mix. This new and pragmatic approach to planning, timelines and budgets is important for making Allocation Round 7 (AR7) a success.
“It will enable fixed-bottom offshore wind projects without finalised planning permission to enter this year’s AR7 Contracts for Difference auction. OEUK is pleased the UK government has also followed our recommendations to expand Contracts for Difference (CfD) from 15 to 20 years to unlock investment and reduce cost to consumers.
“These changes will help to build business confidence when government budgets are decided, and the application window opens later this summer.
“Government will also be supporting Test and Demonstration floating wind projects with AR7. It should continue working with industry to unlock further investment in floating wind – and in particular, the electrification projects that can also help meet the Government’s Clean Power 2030 goal. To get there, OEUK believes it’s critical the coming allocation round raises 8.4 gigawatts, which depends on working in partnership with industry.
“OEUK is working across industry and our world class supply chains to build the capacity and investment we need to make this allocation round a success and build our energy future right here in the UK.”
