Marine Energy Wales applauds price increase for offshore renewables in next CfD auction
Marine Energy Wales has welcomed the increase in administrative strike prices for offshore wind and tidal energy in the next UK government’s contracts for difference (CfD) allocation round.
The administrative strike price for floating offshore wind has been increased 52%, from £116/MWh to £176/MWh. This provides a greater level of certainty that projects will be able to bid at a financially sustainable level and increases the chances of Celtic Sea projects being able secure contracts in the next round, according to Marine Energy Wales.
Offshore wind has seen the biggest increase in the strike price, from £44/MWh to £73/MWh, corresponding to the price bump of 66%.
Whilst the fifth allocation round (AR5) was deemed a massive success for the tidal stream sector, the next one will see an increase in administrative strike price for this technology. With an uplift of 29% from £202/MWh to £261/MWh, Marine Energy Wales said this represents a strong signal of continued support from UK government, providing the nascent industry with additional headroom whilst attempting to industrialise amidst difficult economic circumstances.
“We are pleased today to see an increase in administrative strike prices (the maximum value a project can bid in at) for the UK Government’s CfD scheme coming into effect for AR6 next year. This comes off the back of a disappointing AR5 earlier this year whereby no offshore wind projects submitted a bid,” Marine Energy Wales aid in a statement.
The news of sustainable industry awards coming into effect for AR7 in 2025 for offshore wind is also positive news.
The addition of financial incentives for non-price factors should drive the offshore wind industry to further decarbonize its supply chain and re-invest in community benefits, deemed the Welsh flagship organization dedicated to marine renewables.
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