The 海角视频 offshore wind industry has been handed a huge boost with the government’s ramping up of auction rounds for clean power production.
Business Secretary Kwasi Kwarteng has announced the Contracts for Difference scheme - the process that sets the subsidy level and has driven down costs by more than 60 per cent over the past decade - will now take place annually.
Sector leaders have described the move as a major step forward towards net zero, and it will kick in after the largest auction yet.
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Mr Kwarteng said: We want to further accelerate our low carbon power generation, making the 海角视频 less reliant on volatile fossil fuels and creating more home-grown power. This will help us to deliver a fully decarbonised electricity system by 2035.
“To do this we set out an ambition to accelerate the deployment of low-cost renewable generation by undertaking a review of the frequency of the Contracts for Difference allocation rounds. The review has now concluded.
“I have decided to increase the frequency of the allocation rounds to every year, from around every two years as it is currently. The next allocation round, AR5, will be brought forward to March 2023 and it is our intention that the subsequent allocation rounds will be held every 12 months in the following years.”
Since launch in 2014, it has delivered 16GW of green energy. The mechanism has also seen the sector pay into the system during the current high prices. Renewables now account for 43 per cent of generated power - up from 7 per cent in 2010.
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The creation of “thousands of high-skilled jobs and bringing new industries to our former industrial heartlands” was highlighted by Mr Kwateng in his written statement, with the Humber and the North East attracting the lion’s share. The change is seen as further encouraging investment in supply chains.
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Chief executive of trade body Renewable海角视频, Dan McGrail, said: “Moving to annual CfD auctions is a major step forward which will significantly accelerate the speed of our nation’s transition to net zero. It is good news for consumers too, as it means the 海角视频 will be reducing its vulnerability to volatile international gas prices and increasing the volumes of low-cost renewable energy in our energy system.
“There’s a huge appetite among renewable energy developers to invest in building more projects, which will help to grow the 海角视频 supply chain at a faster rate. This will enable us to maximise the economic benefits which this sector offers to everyone, especially in parts of the country which urgently need levelling up.
“We need build up to four gigawatts of new offshore wind capacity every year to stay on track for net zero, which means quadrupling our current annual rate. Similar increases in onshore wind, solar and other clean power sources are vital too, as well as ramping up the roll-out of innovative technologies like floating wind, green hydrogen and marine power.”
Recent months have seen two major manufaturers commit to a £450 million new Humber port facility, Able Marine Energy Park, at North Killingholme.
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Executive chair of developer Able 海角视频, Peter Stephenson, said: "It is a very welcome development and one that should provide the sector with increased confidence.
"It provides swifter recompense for projects that missed out on the current round and should assist in smoothing overall demand, potentially reducing the risk of impending bottlenecks."
Spanish turbine tower specialist GRI Renewable Industries and South Korean monopile manufacturer SeAH have committed to the site.