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Offshore wind secures record 8.4GW in government auction
Summary
The Government awarded 8.4GW of offshore wind across six projects in a recent auction, with an average strike price of £91 per MWh; officials said the schemes could power about 12 million homes and attract around £22 billion of private investment.
Content
The Government has awarded contracts for 8.4 gigawatts (GW) of offshore wind in its latest renewable energy auction. Six projects won agreements, including Berwick Bank in the North Sea, Dogger Bank South, Norfolk Vanguard and Awel y Môr. The average strike price secured for these projects is £91 per megawatt hour (MWh). Officials and the Department for Energy Security and Net Zero (DESNZ) said the projects would add capacity, support jobs and investment as part of the clean power by 2030 objective.
Key details:
- Auction outcome: 8.4GW awarded across six offshore wind projects.
- Price and comparison: average strike price of £91/MWh (about £65 in 2012 prices); government analysis cited a levelised cost for a new gas plant at £147/MWh.
- Projects named: Berwick Bank (first new Scottish scheme since 2022 and described as the largest planned offshore wind project), Dogger Bank South, Norfolk Vanguard, and Awel y Môr among winners.
- Technology mix: the round included two higher-cost projects to develop floating offshore wind technology.
- DESNZ estimates: the projects could generate enough power for about 12 million homes, attract some £22 billion in private investment and support around 7,000 jobs.
Summary:
The auction result was presented by ministers as a significant addition to UK renewable capacity and as part of efforts to meet the 2030 clean power goal. Reactions were mixed: industry and some environmental groups welcomed the investment and job prospects, while conservation groups raised concerns about impacts on seabirds and some politicians highlighted the higher strike price compared with earlier rounds. Officials said further results for onshore wind and solar auctions will be published in the coming weeks.
