Offshore wind farms facing build delays as government renewables auction fails

UK offshore wind farm developers are reportedly postponing non-essential work on projects as a result of the recent government renewables auction not attracting any investment.

This could be a significant set back as developers can’t see a future as the latest Contracts for Difference auction failed to attract any bids given that the proposed contract sell price did not allow for enough margin to warrant the development.

The Sunday Telegraph yesterday reported that at least two major companies have decided to slow down their investments to the bare minimum required to keep their projects afloat.

The situation has been described as a “holding pattern,” with developers waiting for more favourable conditions from the government.

Industry representatives recently met with Graham Stuart, the Net Zero Minister, in hopes of addressing these concerns.

However, it was reported that some attendees left the meeting unsure about the government’s commitment to resolving the issues in next year’s auction.

Developers are now voicing concerns about the UK’s ability to meet its ambitious target of achieving 50GW of offshore wind capacity by 2030.

It is clear that off-shore wind is going to play a part in the future generation mix but it is not now clear how much given the current differences in the government contracts.

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