Officials from the new UK government and industry are all hailing the record results of the sixth round for renewable energy today. After failing to name any successful bidders in the round in 2023, the UK selected the largest offshore projects and the first large commercial floating wind projects as well as onshore, tidal, and solar. In total the government selected 131 green infrastructures that could yield as much as 10 GW expanding on the current 30 GW of installed capacity.
“Today we have now achieved a record-setting round for enough renewable power for 11 million homes, essential to give energy security to families across the country. It is another significant step forward in our mission for clean power by 2030 – bringing Britain energy independence and lower bills for good,” said Energy Secretary Ed Miliband.
After last year’s failure, the government took critical steps to bolster interest in wind energy and other renewable energy. They significantly raised the maximum strike price and provided greater flexibility for the structure of the projects. The new UK government also announced a further increase in funding.
“We are delighted with the outcome of Allocation Round 6 which has awarded contracts to the largest number of projects ever,” said Neil McDermott, CEO of Low Carbon Contracts Company. The industry trade group RenewableUK echoed a similar sentiment saying that the result “sends a clear signal that the UK is back in the global race for clean energy.”
The offshore component includes a total of nine projects which will represent approximately 5 GW of energy. The contract price came in at or below £59/MWh, ($77) below the government’s proposed maximum. Currently, approximately half of the UK’s capacity comes from offshore wind (15 GW) with a government goal to quadruple this by 2030.
Among the new contracts awarded today were Inch Cape and Moray West in Scotland. In England, they selected East Anglia Two and Three, as well as Hornsea 3 and 4. The Hornsea projects which will be developed by Ørsted expand on Honsea 1 (1.2 GW) and Honsea 2 (1.3 GW). Hornsea 3 gets a 15-year contract with an inflation-indexed strike price for 1,080 MW of power plus a contract for 2,400 MW from the fourth phase of the project. Ørsted will build the third and fourth phases including the transmission assets.
Hornsea is on track to become the world’s largest offshore wind zone with the third phase. Hornsea 3 will be the world’s largest single offshore wind farm with a capacity of 2,995 MW and combined with the two earlier states it will provide more than 5 GW. Ørsted expects to make the financial decision for the fourth phase within the next 18 months and is targeting commission before the end of 2030.
Developers Flotation Energy and Vårgrønn, a joint venture between Plenitude and HitecVision, also reported the selection of Green Volt, which is set to become a pioneering floating offshore wind farm. The plan calls for 400 MW of capacity which is double the size of Europe’s total installed floating offshore wind capacity. It will be located off the Aberdeenshire coast in Scotland and is scheduled to start production by 2029.
In addition to the offshore wind projects, the government selected 22 onshore wind projects which will provide an additional 990 MW. A total of approximately 100 solar projects were also selected as well as six tidal energy projects.
