The UK’s fifth CfD round closed in September last year and saw the UK government awarding 3.7 GW of renewable energy projects, however, none of those were offshore wind farms as offshore wind developers placed no bids.
Round 5 comprised two auction Pots: Pot 1 for established renewable energy technologies, including fixed-bottom offshore wind, and Pot 2 for less established technologies, including floating offshore wind.
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Offshore Wind Developers Take a Pass on UK’s Fifth CfD Round as Maximum Bid Price Was Too Low
In November 2023, the government announced that it increased the maximum strike price for offshore wind projects in the next CfD auction by 66 per cent for fixed-bottom and by 52 per cent for floating wind projects.
In AR6, offshore wind will also be given a separate funding pot in recognition of the high number of projects ready to participate, the government said.
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UK Increases Offshore Wind Strike Price Ahead of Next Auction
The government is expected to announce further auction details this year, ahead of Allocation Round 6.
In the UK, Iberdrola, through ScottishPower Renewables, owns the 714 MW East Anglia One offshore wind farm, which has been operational since 2020, and the 389 MW West of Duddon Sands, in operation since 2014, in a joint venture with Ørsted.
The company is also developing three projects with a combined capacity of 7 GW in Scotland after securing development rights in the 2022 ScotWind seabed lease auction . The projects being developed by Iberdrola include two large-scale floating wind farms in cooperation with Shell (the 3 GW MarramWind and 2 GW CampionWind) and a 2 GW fixed-bottom offshore wind farm MachairWind.
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