Plans to help renewable vitality introduced in yesterday’s funds are unlikely to get the UK’s offshore wind again on monitor, the business has warned.
Final yr, the UK fell behind its goal to construct 50GW of offshore wind by 2030 when an public sale spherical failed to draw a single bid.
The federal government’s pricing of contracts didn’t woo any new initiatives, regardless of prior warnings from business it was too low.
In yesterday’s funds, the chancellor pledged a report £800m for this yr’s offshore wind public sale spherical, out of a report £1bn for renewable energy total.
That £800m is 4 instances the quantity provided final yr, as Jeremy Hunt seeks to revive the maritime wind sector.
However, whereas business welcomed the additional money, it stated it will solely pay for round 3-5GW of recent offshore wind, as current inflation and competitors in different markets have just lately pushed up prices.
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With the chancellor centered on slicing spending within the run-up to the election, business figures say they have been disenchanted however not stunned.
Renewable UK, the nation’s main not-for-profit renewable vitality commerce affiliation, warned Britain was now unlikely to achieve the 2030 goal, which is seen as essential to boosting clear, safe vitality and ditching overseas fuel.
Dan McGrail, chief government of Renewable UK, stated: “Uplift in clear vitality funds is welcome, however alternative to maximise offshore wind capability on this yr’s public sale has been missed.”
The UK has 10GW of “eligible” offshore wind initiatives prepared and ready to go – that means they’ve already gone by the arduous strategy of getting planning permission from the vitality safety division and agreements to connect with the Nationwide Grid.
“Constructing that is important if we’re to make up misplaced floor from final yr’s public sale and create the substantial pipeline required to speed up provide chain funding and development within the UK,” Mr McGrail stated.
The UK has round 15GW put in already and about 14GW within the pipeline, however now additionally must make up for final yr’s flop.
One other business physique, Vitality UK, stated the funding introduced for this yr’s auctioning spherical means subsequent yr’s spherical would “have to amass an unrealistic 16GW of offshore wind to achieve the 50GW of offshore wind by 2030 goal”.
